MNI: FED'S BARKIN STILL CONFIDENT UNDERLYING INFLATION FALLING

MNI China Daily Summary: Friday, January 3

MNI China Press Digest Jan 3:RRR Cut Mooted, Yuan, Consumption

MNI BRIEF: Beijing Boosts Consumer Trade-ins To Cellphones

MNI: PBOC Net Drains CNY88.5 Bln via OMO Fri

MNI: PBOC Sets Yuan Parity Lower At 7.1878 Fri; -2.29% Y/Y

US EIA:NAT GAS STORAGE -116 BCF TO 3,413 BCF JAN 03 WK

MNI: US ISM DEC MANUF PURCHASING MANAGERS INDEX 49.3

MNI: UK NOV M4 MONEY SUPPLY +0% M/M, +2.9% Y/Y

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EMERGING MARKETS: USD Rally Prevalent Against G10 Counterparts, MXN Outperforms

EMERGING MARKETS
BulletEM BulletEmerging Market News
  • The US dollar continued its impressive rally to start 2025, with the ICE dollar index rising around 0.7% on Thursday. This took the index to the highest level in two years, above the 109 handle. News flow remained limited as markets remain in holiday mode, as the path of least resistance remains clearly tilted towards the upside for the greenback.
  • The broad dollar strength prompted a couple of major pairs to break significant levels, most notably EURUSD sliding to a fresh cycle low. The move was kickstarted by the pair cleanly breaking support at the bear trigger of the Nov 22 low at 1.0335. The low print so far according to Bloomberg was 1.0226 in relatively thin trade, a level that matches closely with the 1.0223 low on Nov 21, 2022.
  • As noted, today's price action keeps moving average studies in a bear-mode position, highlighting a dominant downtrend to begin the year. While there are small supports noted at 1.0198, and 1.0181 (the 2.0% 10-dma envelope), chart levels remain scant between here and parity.
  • Underperforming on the session has been GBPUSD (-1.16%), which has plunged below the 1.24 handle, the lowest level for the pair since April. Below here, market participants will focus on the 2024 lows at 1.2300. Standing out is the 1.37% decline for GBPAUD, erasing the past two-week rally in short order. This cross has edged back below the psychological 2.00 mark and is now trading below its 20-day EMA for the first time since late November. Mid-December lows at 1.9799 provide the initial target for the move.
  • In emerging markets, the Mexican peso is notably outperforming, with USDMXN tracking 0.85% lower on the session to 20.65. This further reverses the strong move higher earlier in the week, which saw the pair print a fresh cycle high above 20.90.
  • US ISM Manufacturing PMI headlines the data docket on Friday.

 

 

 

309 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • The US dollar continued its impressive rally to start 2025, with the ICE dollar index rising around 0.7% on Thursday. This took the index to the highest level in two years, above the 109 handle. News flow remained limited as markets remain in holiday mode, as the path of least resistance remains clearly tilted towards the upside for the greenback.
  • The broad dollar strength prompted a couple of major pairs to break significant levels, most notably EURUSD sliding to a fresh cycle low. The move was kickstarted by the pair cleanly breaking support at the bear trigger of the Nov 22 low at 1.0335. The low print so far according to Bloomberg was 1.0226 in relatively thin trade, a level that matches closely with the 1.0223 low on Nov 21, 2022.
  • As noted, today's price action keeps moving average studies in a bear-mode position, highlighting a dominant downtrend to begin the year. While there are small supports noted at 1.0198, and 1.0181 (the 2.0% 10-dma envelope), chart levels remain scant between here and parity.
  • Underperforming on the session has been GBPUSD (-1.16%), which has plunged below the 1.24 handle, the lowest level for the pair since April. Below here, market participants will focus on the 2024 lows at 1.2300. Standing out is the 1.37% decline for GBPAUD, erasing the past two-week rally in short order. This cross has edged back below the psychological 2.00 mark and is now trading below its 20-day EMA for the first time since late November. Mid-December lows at 1.9799 provide the initial target for the move.
  • In emerging markets, the Mexican peso is notably outperforming, with USDMXN tracking 0.85% lower on the session to 20.65. This further reverses the strong move higher earlier in the week, which saw the pair print a fresh cycle high above 20.90.
  • US ISM Manufacturing PMI headlines the data docket on Friday.