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Financial markets extend the holiday mood on the first trading day of the new year. Markets continue playing the waiting game for a data-driven next week.

The US Dollar Index (DXY) is trading near the 98.40 price region on Friday, trimming a big chunk of its New Year losses.

Gold (XAU/USD) trades around the $4,320 level, losing all of its intraday gains after the New Year's break. Market expectations of lower interest rates in the United States (US) and rising geopolitical tensions have underpinned precious metals over the last few sessions.

EUR/USD hovers around 1.1740 after edging lower in the first half of the week. The pair remains under pressure as it awaits the upcoming data.

GBP/USD is trading near the 1.3480 price region, little changed in the first American session of the year.

USD/JPY is trading near the 156.50 price region, in negative territory, with little intraday change.

AUD/USD is trading close to the 0.6690 area, posting a small advance after trimming almost half of its intraday gains on Friday.

Key economic data: Upcoming releases to shape market sentiment

Over the coming days, investors will focus on US employment data and global inflation figures, as they inform central banks’ decisions.

The US Institute for Supply Management (ISM) will publish the Manufacturing Purchasing Managers' Index (PMI) for December on Monday.

Germany's Harmonized Index of Consumer Prices (HICP) and the Australian Consumer Price Index (CPI) will be released on Tuesday.

The US ADP Employment Change report (December) and the ISM Services PMI (December) will be released on Wednesday, along with the Eurozone HICP (December preliminary).

The US Trade Balance (October) and Consumer Credit (November) will be released next Thursday.

Finally, the US Nonfarm Payrolls (NFP) report for December and the preliminary estimate of the January Michigan Consumer Sentiment Index will be released on January 9.

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