USD/JPY

Forex today in Asia cheered the return of full markets, as the Japanese markets opened for 2019. USD/JPY pair jumped almost 100-pips and tested the 108.50 level before retracing to near 108.10 region. The USD/JPY rally lifted the dollar across its major peers while the reports that the US House of Representatives passed the bill that lifts the partial government shutdown also underpinned the dollar demand. Meanwhile, both the Euro and the GBP traded modestly flat, awaiting fresh impetus from the upcoming macro releases.

Markets brace for an eventful EU calendar ahead, with the focus on the UK services PMI and Eurozone flash CPI estimate due later at 09:30 GMT and 10:00 GMT respectively. At the same time, the second-liner Eurozone PPI data will be published.

The NA session also offers plenty of event risks, with the highlight being the US payrolls and earnings data due at 13:30 GM. Later, the US Markit services PMI will be published at 14:45 GMT, followed by the EIA crude stocks data at 16:00 GMT and Bakers and Hughes oil rigs count data at 18:00 GMT. Besides, the speeches by the FOMC member Bostic and Fed Chair Powell will also hog the limelight.

Oil prices steadied on Friday after China said it would hold talks with Washington on Jan. 7-8 aimed at solving trade disputes between the two world’s biggest economies. Crude prices had previously fallen after the United States followed most other major economies into a manufacturing downturn and on concerns that the Sino-American trade war would lead to a global economic slowdown. Despite the global market turmoil, oil prices are expected to receive some support as supply cuts announced late last year by OPEC start to kick in.

Gold continues to rise as risk aversion continues to see investors lifting the precious metal amidst fears of a sharp slowdown in economic growth and a failure of the trade talks with major economies around the world suffer from lagging expansion.