2023 starts with rise in commodities

Today, we are back to full trading mode as all the markets are now open after the New Year’s celebrations. Monday was a calm day with no major price swings, perhaps apart from a few cases described in this commentary.

Let us start with a certain major development on the Forex market, which was the USDJPY falling below the 130 support. This area had been a key level for this pair since the middle of April and from the middle of June, it was serving as a key support. Yesterday, sellers managed to break it, bringing us a proper sell signal. One of the reasons was the Yen who was the strongest gainer yesterday. Today, JPY continues its winning streak and is again the strongest currency among majors.

Other big moves happened yesterday on European indices, as the US was still closed. Italian FTSE MIB rose almost 2%, French CAC climbed 1.87%, and German DAX rose 1%. Let’s see if bulls are able to continue this upswing with all markets open and all traders back at work.

Last but not least, we can see proper rises in the commodities today. Oil is up around 0.5%, but the best moves are currently happening on precious metals. Platinum is up 2%, silver 1.7%, and gold climbs up 1.6%. For gold, this move is crucial as the price managed to break the horizontal resistance on the 1825 USD/oz that had been blocking the way up since December 13. Gold is currently at the levels seen for the last time in June. The sentiment there is definitely positive.

The calendar today is mostly filled with manufacturing PMIs from various countries. We have already observed the one from China who came as expected. We shall also get ones from Switzerland, the UK, Canada, and the US. Out of these, only the Swiss one is expected to come above 50 (53).