The US dollar index was down –0.11% on Wednesday close at 96.18, today the index trades down to test 96.00, still in its comfort zone between 95.52 and 96.92 (±50.0%FR). The ECB’s hawkish comments boosted the EURUSD pair and weighed on the Dollar. The Dollar recovered most of its losses Wednesday afternoon, following the December 14-15 FOMC minutes that said the Fed was poised to raise interest rates sooner than expected. Also, a spike in the 10-year T-note yield to a 9-month high of 1.709% supported the Dollar, hitting a level not seen since early April 2021. Today 10-year yeilds are testingthe key resistance at 1.75%. While the 30-year bond yield grew 1.3 basis points to 2.084%, reached a three-month high and trades 2.1% now. US December ADP jobs rose +807,000, stronger than expected +410,000 and biggest increase in 7 months. The data underscores a tight US labor market that looks set to continue into the year. Also, the December Markit services PMI was revised up by +0.1 to 57.6 from 57.5.
Meanwhile, Wall St. plunged, with the Nasdaq 100 falling to a 2-week low. Tech stocks today extended Tuesday’s losses on concerns the strength of the US economy will lead to higher interest rates. In addition, the negative effect of the decline in Chinese technology stocks weighed on US technology stocks amid concerns that the Chinese government’s crackdown on the technology sector will continue. Meanwhile, European stocks rose amid optimism the recent spike in infections from the omicron Covid-19 variant will not force governments into new social restrictions.
USA 500 Index fell -1.94%, Enphase Energy led the losses with a decline of -11.82%. USA30 index was down -1.07% with Salesforce down -8.28% and USA100 Index down -3.34%. Online marketplace operator MercadoLibre was the worst performer after falling -9%.
Click here to access our Economic Calendar
Ady Phangestu
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our written permission.
