FX Today: Attention Turns to US Nonfarm Payroll Data

The US Dollar (USD) continued to strengthen, holding onto its positive momentum for the year. However, investors remained on edge as they awaited the crucial US employment data set to be released at the end of the week.

Key Events to Monitor on Friday, January 9

The US Dollar Index (DXY) extended its upward movement, moving above the significant 200-day simple moving average and approaching the 99.00 mark, reaching its highest levels in several weeks. All eyes are on the Nonfarm Payrolls report, with additional attention on the preliminary University of Michigan Consumer Sentiment figures and speeches from Federal Reserve officials Kashkari and Barkin.

EUR/USD continued its downward trend, challenging its 55-day simple moving average near 1.1640. In Europe, Germany’s Balance of Trade and Industrial Production data will conclude the eurozone’s economic calendar, alongside broader Eurozone Retail Sales and remarks from ECB’s Lane.

GBP/USD remained under pressure, declining for a third consecutive session and revisiting the 1.3420-1.3415 range. Looking ahead, the BRC Retail Sales Monitor is scheduled for release in the UK on January 13.

USD/JPY experienced modest gains, briefly moving above the 157.00 level and extending its winning streak to three days. Upcoming Japanese data includes Household Spending figures, followed by initial readings of the Coincident and Leading Economic Indexes.

AUD/USD continued to slide under persistent selling pressure from Wednesday, dropping to its lowest point in three days and falling below the 0.6700 threshold. Australia’s Household Spending data is expected on January 12.

After two consecutive days of declines, US benchmark WTI crude oil prices rebounded, posting notable gains near $58.00 per barrel as traders kept a close watch on developments related to Venezuela’s oil sector.

Gold prices extended their pullback from Wednesday, reaching their lowest level in three days and testing the $4,400 per troy ounce area, influenced by a stronger US Dollar, rising US Treasury yields, and speculation about the annual Bloomberg Commodity Index rebalancing. Silver also declined, dropping to three-day lows after revisiting the $74.50 per ounce region.