Forex market analysis: 8 January 2025

Today’s session is pivotal in shaping the market’s direction for the remainder of the week. Stay tuned and stay informed.

KEY INDICATORS
US labour market spotlight

- Today’s focus is on the ADP Employment Report for December, a critical indicator ahead of Friday’s Non-Farm Payrolls release.
- This report will provide insights into private-sector job growth and its implications for Federal Reserve policy in the coming months.

Global market sentiment
- Asia: Asian markets ended mostly higher, buoyed by optimism around China’s trade data, which showed signs of recovery despite lingering global headwinds.
- Europe: European stocks opened mixed as investors assessed new inflation data and corporate updates ahead of tomorrow’s European Central Bank (ECB) meeting minutes.

Oil prices and energy markets
- Crude oil prices are holding steady after recent gains, supported by supply constraints and signals of demand recovery.
- Energy stocks remain in focus as the latest US crude inventory report is due today.

MARKET MOVERS
Nasdaq100

Possible short preference
Short positions below 21058.78 with targets at 20973.11 & 20905.80 in extension.
Alternative scenario
Above 21209.73 look for further upside with 21268.89 & 21317.84 as targets.
The RSI is below its neutrality area at 50%, falling the most as it shed 1.89%, or 375 points.

Inflation fears drag down US markets
- US stocks fell, and Treasury yields rose on Tuesday as the ISM Services Index showed a significant jump in prices for December.
- Asia-Pacific markets traded mixed on Wednesday. South Korea’s Kospi rose by 1.3%, boosted by shares of Samsung Electronics, which climbed around 3.6%, even as the company forecast that its fourth-quarter profits would fall short of LSEG expectations.- The price index for December’s ISM report jumped to 64.4% from 58.2% in November, representing an increase of more than 10%.- It’s the first time since January 2024 that the reading has come in above 60%.

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Publication date:

08 January 2025 - 16:27 (GMT)

TODAY’S NEWS HEADLINES
Dow falls more than 170 points; Nasdaq loses nearly 2% as Nvidia leads tech sell-off
Stocks fell on Tuesday as strong economic data raised questions about the possibility of Federal Reserve rate cuts later this year, leading to a spike in Treasury yields.
- Declines across major tech stocks also dragged the market lower.
- The S&P 500 dipped 1.11% to close at 5,909.03.
- The Dow Jones Industrial Average lost 178.20 points, or 0.42%, to end at 42,528.36.
- The Nasdaq Composite slid 1.89% to 19,489.68.

Oil prices edge higher, OPEC supply and tighter sanctions support gains
- Oil prices edged higher on Wednesday, extending a rebound from the prior session as US industry data pointed to a drop in oil inventories, while production by OPEC countries was seen falling.
- At 1:35 PM GMT, Brent oil futures expiring in March rose 0.2% to USD 77.23 a barrel.
- West Texas Intermediate crude futures rose 0.4% to USD 74.53 a barrel.
- Traders are also assessing the possibility that global supplies could be hit if the new US administration adopts a stricter stance on countries such as Iran with regard to sanctions.

Gold pares gains as dollar rebounds following US labour data
- Gold prices pared earlier gains on Tuesday, pressured by a strengthening dollar and rising Treasury yields after increasing US job openings signalled diminishing odds of significant rate cuts by the Federal Reserve.
- Spot gold was up 0.5% at USD 2,647.59 per ounce, after rising as much as 1% earlier in the session.
- US gold futures rose 0.6% to USD 2,662.60.
- Uncertainty surrounding tariff policy in the run-up to Trump’s inauguration on 20 January has fuelled concerns about future US policy moves.