FOREX TODAY: US DOLLAR'S COMEBACK STALLS IN FRONT OF IMPORTANT DATA

What you need know on Wednesday, January 3 is as follows:

On the first trading day of 2024, the US Dollar (USD) gained bullish momentum. The USD have stabilized over 102.00 early on Wednesday, following a nearly 1% increase on Tuesday. The US economic docket will include data on December ISM Manufacturing PMI and November JOLTS Job Openings. The Federal Reserve (Fed) will make available the minutes of the December policy meeting later in the American session.

US dollar exchange rate for this week

The US dollar's (USD) percentage movement compared to a list of major currencies for this week is displayed in the table below. The US dollar outperformed the Swiss franc in terms of strength.

The heat map shows the percentage fluctuations of the major currencies in relation to each other. The left column, and the quotation currency is chosen from the top row. For instance, if you choose the Euro in the left column and go down the horizontal line to the Japanese Yen, the percentage change displayed in the box will be EUR (base)/JPY (quote).

As trade resumed on Tuesday, the USD strengthened and the yield on the benchmark 10-year US Treasury note moved closer to 4%. Meanwhile, Wall Street's main indexes started the day lower, as the Nasdaq Composite Index fell more than 1.5%. US stock index futures are early on Wednesday, with the 10-year US yield remaining steady at roughly 3.95%.

The EUR/USD was heavily pressured to sell after breaking below 1.1000, and on Tuesday it reached its lowest point in nearly two weeks, 1.0938. On Wednesday morning in Europe, the pair is still consolidating at a level slightly above 1.0950. The German will release the unemployment rate figures for December.

On Tuesday, GBP/USD dropped more over 100 pip and approached 1.2600 before making a little comeback. At about 1.2650, the pair was last observed trading slightly higher on the day.

Tuesday saw a surge in USD/JPY due to higher US rates and overall USD strength. During Asian trading hours, the pair lost its upward momentum and began to drift horizontally close around 142.00.

Tuesday saw a strong increase in USD/CAD, which stabilized around 1.3300 early on Wednesday. Falling Crude Oil prices, which put pressure on the Canadian Dollar, which is sensitive to commodities, combined with the USD's positive performance to enable the pair go higher.

Gold shifted course in the American session on Tuesday, and it ended at $2,060. XAU/USD moves in a narrow range just above $2,060 in the morning hours of Europe.