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Inflation-related reports indicate price pressures easing


U.S. equities traded higher on the first trading day of the week. The Dow Jones Industrial Average rose 0.33% to close at 34302.61. The S&P 500 gained 0.4% to close at 3999.09. The tech-heavy Nasdaq composite climbed 0.71% to close at 11079.16.

Numerous inflation-related reports, which all point to easing price pressures, have buoyed equity markets across the globe. The re-opening of China has also provided market participants confidence towards the overall global trade and supply chains. Recessionary concerns seemed to have been completely left behind in 2022 as equity has all started the year with positive gains.

The benchmark U.S. 10-year treasury yield edged higher over Monday and was last seen trading at 3.525%. The short-term 2-year treasury yield traded lower and sits at 4.24%, as of writing.

On the earnings calendar, Goldman Sachs and Morgan Stanley will report F2022 Q4 earnings before the start of the American trading session. United Airlines will report earnings after the American equity markets close. Earnings season will remain one of the largest threats to the recent equity markets rally. Q4 earnings should begin to reflect the effects of the Fed’s aggressive rate hikes in 2022.

Main Pairs Movement

The Dollar index, which tracks the U.S. Greenback against a basket of major foreign currencies, rose 0.12% throughout Monday’s trading. The Dollar index, which shed more than 7% over the last four months of 2022, has continued to lose an additional 1.15% since the beginning of 2023.

EURUSD lost 0.1% throughout Monday’s trading. Germany is scheduled to release its CPI figures and economic sentiment reports, both should affect volatility surrounding the Euro.

GBPUSD lost 0.3% throughout yesterday’s trading. The Dollar rebound on Monday worked against the British Pound. The U.K. will release claimant count change and hourly wage reports during today’s European trading session.

XAUUSD dropped 0.22% throughout Monday’s trading. The Dollar denominated gold lost ground as the Dollar rebounded across markets.

Economic Data

CurrencyDataTime (GMT + 8)Forecast
CNYGDP (YoY) (Q4)10:001.8%
CNYIndustrial Production (YoY) (Dec)10:000.2%
GBPAverage Earnings Index +Bonus (Nov)15:006.2%
GBPClaimant Count Change (Dec)15:0019.8K
EURGerman CPI (YoY) (Dec)15:008.6%
EURGerman ZEW Economic Sentiment (Jan)18:00-15.0
EURGerman ZEW Economic Sentiment (Jan)18:00-15.0
CADCore CPI (MoM) (Dec)21:30