U.S Dollar Looks Vulnerable, Gold Hits Three-Month High

China produced solid manufacturing data today, and Germany and the E.U met expectations. However, U.K manufacturing data fell short of expectations. 

U.S Dollar Remains Weak in Forex, New Year on Wall Street for Traders

The U.S Dollar has remained weaker in forex today. And as the U.S markets begin to open after their long holiday weekend, traders should be ready for some potential pushback. Data from the States will be relatively light today, but tomorrow economic statistics will pick up and Friday will see the official jobs numbers published. Wall Street should be watched closely today after last week’s rather cautious results.

China Posts Solid Data Results, Hang Seng Makes Stellar Gains to Start Year

Manufacturing data from China via the Caixin survey was solid today. Equities in China put in stellar gains via the Hang Seng and Shanghai Shenzhen composites. Japan’s markets will remain closed until late this week. However, China will see an important Services reading on Thursday.

Euro & Pound Keep up Momentum, U.K Manufacturing Falls Short

The Euro and Pound have kept up their momentum early as both currencies are testing important resistance levels against the U.S Dollar. German and European Manufacturing data met their expectations this morning, but U.K Manufacturing Purchasing Managers’ Index numbers came in below their estimate. Tomorrow Construction data will come from Britain. And European equities have sold off cautiously thus far.

Buyers Remain Inspired by Gold, Bullish Firepower Sustained

Gold has continued to inspire speculative positions. The precious metal has climbed above the 1310.00 U.S Dollars an ounce level and appears to have bullish firepower. However, traders must remain aware volumes are thin and the gains made in Gold could be challenged.

Canadian & U.S Manufacturing Data, FOMC Meeting Minutes Tomorrow  

U.S Final Manufacturing Purchasing Managers Index numbers might be of interest to traders at 14:45 GMT.

• 14:30 PM GMT Canada, Manufacturing PMI
• 14:45 PM GMT U.S., Final Manufacturing PMI

Yaron Mazor is a senior analyst at SuperTraderTV.

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