ForexLive European FX news wrap: Dollar on the move as stocks slip

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/stocks-turn-lower-as-the-early-optimism-fades-20240102/">Stocks turn lower as the early optimism fades</a></li><li><a href="https://www.forexlive.com/news/eurozone-november-m3-money-supply-09-vs-10-yy-expected-20240102/">Eurozone November M3 money supply -0.9% vs -1.0% y/y expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-december-final-manufacturing-pmi-444-vs-442-prelim-20240102/">Eurozone December final manufacturing PMI 44.4 vs 44.2 prelim</a></li><li><a href="https://www.forexlive.com/news/germany-december-final-manufacturing-pmi-433-vs-431-prelim-20240102/">Germany December final manufacturing PMI 43.3 vs 43.1 prelim</a></li><li><a href="https://www.forexlive.com/news/france-december-final-manufacturing-pmi-421-vs-420-prelim-20240102/">France December final manufacturing PMI 42.1 vs 42.0 prelim</a></li><li><a href="https://www.forexlive.com/news/uk-december-final-manufacturing-pmi-462-vs-464-prelim-20240102/">UK December final manufacturing PMI 46.2 vs 46.4 prelim</a></li><li><a href="https://www.forexlive.com/news/all-runways-at-tokyos-haneda-airport-now-closed-after-airplane-was-caught-in-flames-20240102/">All runways at Tokyo's Haneda Airport now closed after airplane was caught in flames</a></li><li><a href="https://www.forexlive.com/news/aftershocks-continue-in-ishikawa-as-magnitude-46-earthquake-reported-20240102/">Aftershocks continue in Ishikawa as magnitude 4.6 earthquake reported</a></li></ul><p>Markets:</p><ul><li>USD leads, JPY and CHF lag on the day</li><li>European equities mostly lower; S&amp;P 500 futures down 0.7%</li><li>US 10-year yields up 9.8 bps to 3.960%</li><li>Gold up 0.2% to $2,066.95</li><li>WTI crude up 2.0% to $73.07</li><li>Bitcoin up 4.2% to $45,470</li></ul><p>The day started off like it would be a bright one for risk trades before it all turned around as market players get settled in to the new year. European stocks got off to <a href="https://www.forexlive.com/news/european-equities-look-to-kick-start-the-year-on-positive-footing-20240102/" target="_blank" rel="follow">a strong open</a> before stumbling as we reach midday, with bonds also falling i.e. higher yields during the session.</p><p>In FX, the dollar was holding a bit more mixed before the turn lower in stocks prompted a strong bid in the greenback. EUR/USD was down to around 1.1020 before accelerating losses to 1.0960 currently, at the lows for the day. USD/JPY also pushed higher from 141.50 to 142.20 as it takes out its 100-hour moving average at 141.79 on the day.</p><p>As equities proved to be a drag, commodity currencies also stuttered with USD/CAD rising from 1.3240 to 1.3280 and AUD/USD slipping from 0.6830 in Asia to 0.6790 at the moment.</p><p>There wasn't much in terms of headlines leading to the moves above as it seems like it is mostly just a return of flows after the holiday period. For Japan though, the aftershocks in Ishikawa are still reverberating while there was a rather rare and unfortunate aviation incident in Tokyo which took the lives of 5 persons. The Haneda Airport is still closed as of time of writing due to that.</p><p>In other markets, gold is a touch higher at $2,067 but off earlier highs around $2,075 while Bitcoin is looking to a surging start to the new year in a push above $45,000.</p>

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