Freepik

1. As markets reopened yesterday following the Christmas and New Year holidays, stock markets and treasuries saw a strong selloff, while the US Dollar had its best day since March 2023. This is a strong counter trend move which was seen in most markets, which is typical for early January trading. During the Asian session, the Dollar steadied, although major Asian indices such as the HSI and the Nikkei 225 were both down on the day.
2. A standout asset in the market right now as 2024 gets underway is Bitcoin which is making a bullish consolidation after reaching a new 20-month high price yesterday above the round number at $45,000. This bullish breakout will attract interest from traders, especially trend traders. It is seen as partly driven by the expectation that regulators will approve a new spot Bitcoin ETF from Blackrock within e next few days.
3. In the Forex market, since the Tokyo open, the New Zealand Dollar is the strongest major currency, while the Japanese Yen is the weakest. There remains a valid long-term bullish trend in EUR/USD and a bearish one in USD/JPY, although both saw strong counter trend moves yesterday.
4. In the commodities markets, Cocoa futures stand out as being well established within a long-term bullish trend and are not too far off their highs.
5. There will be 3 high-impact US data releases today:
   • ISM Manufacturing PMI
   • JOLTS Job Openings
   • FOMC Meeting Minutes

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