Most markets are closed but European Indices and Yen are on the move
02 January 2023
2022 was definitely not a calm year. War, inflation, recession, Covid. All that showed us that predicting the future of the market makes no sense. I guess none of the predictions from global investment companies from the end of 2021 worked out. Knowing this, I will avoid predicting what is coming in 2023. Instead of that, I will just go with the flow and submit to what the price action has to offer.
Monday starts with many markets still being closed for the extended NYE celebrations. We are not working today in Japan, China, Switzerland, the UK, Canada, and the US. Despite that, we had some juice on the calendar. Europe showed its Manufacturing PMIs and all of them came below 50 and largely in line with forecasts.
European Indices started 2023 with rises. DAX is currently almost 1%higher, while French CAC is trading at +1.5%. American Futures are still closed and that is pretty much what we can say about indices on the 2nd of January. Commodities also did not resume trading yet but 2022 ended with some significant gains in Oil, where WTI and Brent rose more than 2%.
Currencies are always working! 2023 starts with a stronger Yen and American Dollar, while the weakest currencies right now are British Pound and AUD, and NZD. This creates a situation, where one of the weakest pairs is the GBPJPY, which starts a new year by making new, long-term lows and falling to the lowest levels since the end of September.
With so many markets being closed today, we are expecting a quiet session on the market. I would like to use this opportunity again to wish you all the best in 2023!