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New Year Trade Starts in Earnest, Tips USD Higher

FOREX
  • Markets have resumed trade for 2023 in earnest, with markets seeking USD from the European open onwards. This leaves the greenback among the strongest currencies in G10 early Tuesday, with the JPY similarly strong. The firmer USD Index and JPY backdrop comes despite a better session for equity futures, as the EuroStoxx50 tops mid-December resistance on the way higher.
  • AUD, NZD and EUR are among the poorest performers, with AUD/USD below the Dec29 low to near the 50-dma of 0.6662. Weakness through here opens 0.6629 and levels not seen since mid-November. Similarly, NZD/USD is through the 200-dma of 0.6232 to near first support of 0.6156.
  • Regional Germany CPI releases continue, with the national inflation figure due at 1300GMT. Inflation is seen slowing to 10.2% for the Y/Y EU-harmonized release. There are no central bank speakers of note across G10, with the FOMC minutes from their December meeting not due until Wednesday.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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