As a preliminary gauge of sentiment, we see that Asia had a volatile start for the first trading year of 2017 as trading volumes struggle to get back to normal. Some of the major financial markets are still in holiday mode so we will have to wait a little bit more to see some comeback.
Today’s economic docket will feature some Manufacturing PMI numbers out of the EZ as a whole and from France and Germany amongst others – these are the final readings for the month of December.
US Dollar finds some support this morning, just off the recent 103.63 highs seen towards the end of 2016 – we are currently trading at 102.38. The 20 DMA at 102.16 is apparently lending support.
EURUSD reflected this morning’s support for the USD in a negative start for the first trading year of the year. Moves so far have been very marginal however. EURUSD is currently trading at 1.0511 as we speak; Realtime Forex Market Trends shows a neutral trend tending towards the negative and Realtime Tradertip sees daily resistance at 1.0584:1.0618 but we may be in for a drift down towards 1.0463 levels especially as RSI remains in neutral territory.
Watch out for volatility as we remain within thin trading conditions.