| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:45 | China | Markit/Caixin Services PMI | December | 51.5 | 51.7 | 52.2 |
During today's Asian trading, the US dollar declined against major currencies, but remained near a 2-year high, while market participants are cautious ahead of the publication of a variety of US data that will help clarify the prospects for easing the Fed's monetary policy.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.17% to 108.77. Investors are awaiting insights into the Fed’s rate outlook and economic health, with the minutes from its latest meeting due Wednesday and December payrolls data set for release on Friday. A number of Fed officials are also expected to speak this week, likely confirming their colleagues' recent comments that the fight to curb inflation is not over yet.
The Canadian dollar rose 0.4% against the US dollar amid news that Prime Minister Justin Trudeau may resign. Markets appear to have largely priced that in and might welcome an election to clarify matters.
The Chinese yuan fell 0.45% against the US dollar, hitting a 14-month low and breaking the psychological level of 7.3, which the Central Bank aggressively defended for most of December. The drop followed despite favorable Chinese data, which showed that the service sector saw its strongest growth in seven months in December, driven by increased domestic demand, but concerns over trade risks and external pressures dampened optimism. The Caixin/S&P Global services PMI climbed to 52.2, up from 51.5 in November, surpassing forecasts (51.7) and marking the sharpest expansion since May. New business inflows grew at the fastest rate in five months, although export orders declined for the first time since August 2023.