Apple reaches $3 trillion market cap

For last year’s words belong to last year’s language. And next year’s words await another voice. And to make an end is to make a beginning. – T.S. Eliott

 

 

 

HEADLINES

 

 

 

• Dollar starts off 2022 on higher note as yields climb
• Czech crown hits 9-year high as currencies start 2022 with gains
• Oil settles higher on 2022 demand optimism
• Gold falls over 1% as risk appetite grows on easing Omicron fears
• Wall St rises on 1st trading day of 2022; Apple hits $3 trillion market cap
• Monetary decoupling between West and East to strengthen the dollar – Natixis

 

 

FOREX

 

 

 

Dollar starts off 2022 on higher note as yields climb

 

The U.S. dollar rose against a basket of major currencies on Monday, the first trading day of the new year, in sync with government bond yields as investors anticipate the Federal Reserve will stay on its path of interest rate hikes in 2022.

While the surge in coronavirus cases caused by the Omicron variant continued to impact global travel and public services, investors remained optimistic that lockdowns would be averted.

 

Czech crown hits 9-year high as currencies start 2022 with gains

 

The Czech crown hit its highest level since 2012 and the forint rose on Monday, both gaining in new year trading from higher interest rates and data showing stronger manufacturing sentiment.

The Hungarian forint gained 0.69% and was trading at 366.86 per euro in thin liquidity as markets in Britain were closed for a holiday, two FX traders in Budapest said.

 

 

COMMODITIES

 

 

Oil settles higher on 2022 demand optimism

 

Oil settled higher on Monday on hopes of further demand recovery in 2022, despite OPEC+ looking set to agree to another output increase and persistent concerns about how rising COVID infections might affect demand. OPEC and its allies, or OPEC+, are expected on Tuesday to agree to the output hike.

 

Gold falls over 1% as risk appetite grows on easing Omicron fears

 

Gold prices fell more than 1% on Monday as a risk-on rally in equities pressured bullion, with investors shrugging off concerns around the impact of the Omicron coronavirus variant.

Spot gold dipped 1.5% to $1,800.68 an ounce (1837 GMT), set for its biggest one-day percentage decline in more than a month. U.S. gold futures settled down 1.6% at $1,800.10.

 

 

 

STOCKS

 

 

 

Wall St rises on 1st trading day of 2022; Apple hits $3 trln market cap

 

U.S. stocks rose on Monday, with Apple Inc (AAPL.O) hitting a $3 trillion market capitalization and Tesla Inc (TSLA) posting bumper delivery numbers, giving investors cheer on the first trading day of the new year. Apple's shares rose 2.5% to $181.96 after it became the first company to reach that milestone.

Tesla climbed 12.4% after the company's quarterly deliveries beat analysts' estimates, riding out global chip shortages as it ramped up production in China.

 

 

 

ANALYSIS

 

 

 

Monetary decoupling between West and East to strengthen the dollar – Natixis

 

“It seems that 2022 will be characterized by a great divergence of monetary policies between the key Western central banks and those in the East. Such monetary decoupling has important consequences – namely, the increase in the cost of financing due to the withdrawal of monetary stimuli in the West could further slow economic growth. This is particularly problematic given recent developments with the Omicron variant of covid in terms of reduced cross-border, but also domestic, mobility.”

 

 

 

CHART

 

 

 

US dollar / Japanese yen – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

USD/JPY has broken out above long term resistance at 114.5 and looks on course to target next major resistance at 119. - Prepared by Trading Writers*

 

 

 

CALENDAR

 

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/markets/commodities/oil-starts-new-year-positive-note-pandemic-worries-curb-gains-2022-01-03/
https://www.reuters.com/markets/us/dollar-starts-off-2022-higher-note-yields-climb-2022-01-03/
https://www.reuters.com/markets/europe/wall-st-rises-1st-trading-day-2022-apple-hits-3-trln-market-cap-2022-01-03/
https://www.reuters.com/markets/europe/stocks-launch-2022-with-gains-forint-firms-investors-eye-rate-hikes-2022-01-03/
https://www.fxstreet.com/news/monetary-decoupling-between-west-and-east-to-strengthen-the-dollar-natixis-202112290940