Eurozone inflation coming up but all eyes are on US data later today

<p>The dollar continues to be in decent shape to start the new year, as 10-year Treasury yields nudge back up to the 4% mark this week. USD/JPY is the one to watch as it runs up towards a test of the 145.00 level once again, where the post-BOJ gains in December was held back. Can buyers break through this time around?</p><p>Meanwhile, equities continue to remain subdued and that is keeping risk trades on their toes in general. That is also in part helping to underpin the dollar in the latest bounce this week. Besides all that, the crypto space will be an interesting one to watch before the weekend as <a href="https://www.forexlive.com/Cryptocurrency/multiple-social-media-sources-suggest-imminent-approval-of-bitcoin-spot-etf-applications-20240104/" target="_blank" rel="follow">Bitcoin nears the imminent ETF approval</a>. Will it end up being a buy the rumour, sell the fact play?</p><p>As for broader markets today, the main focus is on US data once again. The non-farm payrolls release will be the first big hurdle before we get to the ISM services PMI report. But before we get to that, there will be some data to work through in European trading.</p><p>The big one being the Eurozone inflation report, which should see headline annual inflation move higher but core annual inflation continue to ease. Considering the latter, that will keep the ECB on track to gradually posture more dovishly over time and reaffirm market bets for sooner rate cuts – at least for now.</p><p>0700 GMT – Germany November retail sales0700 GMT – UK December Halifax house prices0830 GMT – Germany December construction PMI0900 GMT – Italy December preliminary CPI figures0930 GMT – UK December construction PMI1000 GMT – Eurozone December preliminary CPI figures1000 GMT – Eurozone November PPI figures</p><p>That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.</p>

This article was written by Justin Low at www.forexlive.com.