News and analysis

Since the beginning of the year, WTI has increased its price by more than 8%, surpassing the psychological barrier of $75, previously regarded as the closest resistance.

The US Dollar rally extended for a sixth-consecutive week with a 4.3% advance now approaching uptrend resistance. Battle lines drawn on the DXY weekly technical chart.

GBP/USD approaches the November 2023 low (1.2096) after failing to defend the 2024 low (1.2300).

The market was already repricing US interest rates higher in recent days and week, amid expectations of inflationary policies under Donald Trump, when he takes office later this month. But the surprising strength of US labour market means traders have now shifted the full pricing of the next Fed rate cut to October.

U.S. stocks are set to open lower after the US non-farm payroll report smashed forecasts, dampening expectations for Fed rate cuts. 256k jobs were added in December, well ahead of the 164k forecast. The unemployment rate unexpectedly fell to 4.1%. The market has lowered rate cut expectations and pushed back the first cut to October.

EUR/USD, DXY Analysis: Key U.S. data is on the horizon, poised to test the dollar’s strength for new highs and the euro’s vulnerability to parity risks.

I doubt we’ll be seeing too much weakness in December’s NFP figures later today, and that could prompt another bid for the USD. But with Trump likely to revive his disdain for a strong dollar, perhaps a pullback is not too far away.

The price of gold may attempt to further retrace the decline from the December high ($2726) as it extends the series of higher highs and lows from the start of the week.

Dow Jones dropped over 2% during the last trading week, falling from the peak of 43,400 recorded in late December 2024.