News and analysis

USD/JPY extends the advance from the start of the week to clear the December high (158.09).

Gold has registered growth of over 1% in recent hours, positioning itself above $2,650 per ounce.

A rebound off uptrend support keeps the focus on a breakout of the weekly range heading into NFPs on Friday. Battle lines drawn on the DXY short-term technical charts.

A confirmed bullish breakout in USD/JPY above the top of the range could target 160.00 in short order, whereas a bearish breakdown could open the door for a deeper retracement toward 154.00.

The U.S. Dollar just finished its strongest quarter in nine years, and stock prices remain elevated, as well. This sets the stage for a volatile 2025 as explained in this webinar.

GBP/USD may continue to trade within the 2024 range should it extend the recent series of higher highs and lows.

U.S. stocks are heading for a positive open as investors await economic data and further insight into the incoming Trump administration's policies. US jolts job openings and ISM services PMI data are due later in the session. Signs of ongoing resilience within the economy could further dampen Federal Reserve rate cut expectations. Separately, Nvidia is set to open higher after new products were unveiled, including an AI superchip.

A three-month decline takes Euro into downtrend support into the start of the year with momentum fading. Battle lines drawn on the EUR/USD weekly technical chart.

DAX analysis: After climbing an impressive 18% last year and 20% the year before, the DAX has made a decent start to the new year, up a good 2.2% year-to-date. But it is early days and with valuations looking a little stretched and the economy not doing so well, we could see correction first before the market resumes higher.