Forex Today: Dollar capitalizes on rising yields, eyes on US PMI data

[OZER]

The greenback outperformed its rivals on Monday, supported by the sharp upsurge witnessed in the US Treasury bond yields. The US Dollar Index erased the losses it suffered in the last week of 2021 and continues to edge higher in the early European session on Tuesday. The benchmark 10-year US T-bond yield, which rose nearly 8% on Monday, is currently posting small daily gains at 1.63%. The ISM Manufacturing PMI for December and November JOLTS Job Openings will be featured in the US economic docket in the second half of the day. Statistics Canada will release the Industrial Product Price Index data for November as well.

The risk-positive market environment at the start of the week provided a boost to US T-bond yields. The S&P 500 and the Dow Jones Industrial Average gained 0.64% and 0.68%, respectively, amid easing concerns over the potential negative impact of the coronavirus Omicroin variant on global economic activity. US stocks futures indexes are up between 0.2% and 0.3% in the early European session, suggesting that the market mood is likely to remain upbeat on Tuesday.

EUR/USD fell sharply in the second half of the day and lost more than 60 pips on Monday before settling below 1.1300. The dollar's market valuation continues to drive the pair's action.

GBP/USD snapped a three-day winning streak on Monday and seems to have gone into a consolidation phase around 1.3470 early Tuesday. British Prime Minister Boris Johnson reiterated that they will not reintroduce explicit lockdowns but warned of rising pressure on the healthcare system.

Gold fell sharply amid surging US Treasury bond yields on Monday but managed to hold above $1,800 so far. Another leg higher in yields could cause XAU/USD to test that level one more time.

USD/JPY rallied to its highest level in five years as the JPY struggled to find demand as a safe haven. The pair is currently trading a little above 115.70, rising 0.35% on a daily basis.

Bitcoin lost nearly 2% on Monday and continues to edge lower toward $45,000 on Tuesday. Ethereum erased a small portion of its losses after touching a daily low of $3,680 on Monday but ended up closing the day in the negative territory.

[Amirkwan]

Chart at 2:10 is just wrong *scales*

[burgeon]

per Week

[borchers]

If you don't own a house  and stocks you are doomed.

[ahward21]

The bond market

[yesimmexican23]

booster shots are inflationary. Who's paying for tests and vaccines? Your purchasing power. When government interferes with the working class and businesses through more and more regulation, does that increase output or decrease output? It decreases output causing higher prices for goods and services. Bill Gates' carbon tax to fund his chalk marks in the sky. Is that carbon tax inflationary or deflationary? It's inflationary. There is zero benefit to the middle class by flying airplanes spraying dust into the atmosphere. The entire process is inflationary.

[killerti]

It's the great reset for the middle class. You'll own nothing and you'll be happy working as a slave. All income from past labor will be erased so you won't achieve financial freedom unless you already have deep pockets, you're highly leveraged, and you are a landlord.

[warlos]

We definitely need term limits for these ol heads.

[Matty242]

Higher wage jobs are going to be sent over shores Your going to need a graduate degree  Only a former fed crony would make that claim so lightly without providing supporting evidence or exploring in depth the damning implications of being correct.

[thimblerig]

No. 1. It's by design 2. The Petro Dollar is over, u guys won't wake up.

[jtguidera]

out researching, because it sounds good.I have to say that in my experience (as a stand-by) the bubble is usually something people jump into, w

[xxkillcainxx]

Any way we can see how his predictions lined up in 2021?

[digdigger]

That's NOT INVESTING....Thats gambling kind of going to Vegas!

[koh]

Why are you using fake graphs for Gamestop, you are saying that gamestop went 1900% up (which is correct) and the chart points out over 8000%. Many times on TV i cringe when i see bad data visualization, especialy on TV Networks that have the budget to create proper charts, it makes me think that they use them in malicious way.

[jackiscool]

Lol