The dollar regained some of the momentum lost during the last two weeks, against most major currencies on Monday, however trading volumes were light due to many markets being closed for the New Year's Day holiday.
The euro dropped slightly below the $1.05 level on Monday, while the dollar index climbed, nearing its 14-year-high of 103.65. The greenback finished 2016 at 14-year highs on market expectations that the Fed will increase rates three times this year, and that incoming President Trump will boost growth and inflation with a program of investment in infrastructure.The dollar finished the year with an almost 4% annual rise, the fourth consecutive year of gains.
There was a sense of a market correction from Europe this morning, and movement in price was not based on changes in the underlying fundamentals, according to Commerzbank (DE:CBKG) currency strategists. The Aussie gained further on Tuesday in Asia as investors noted a better-than-expected private manufacturing PMI from China, with markets in Japan closed. Markets were rattled by tweets from Donald Trump suggesting a hard line against North Korea's plans to test an intercontinental ballastic missile capable of carrying a nuclear warhead that could reach the U.S. West Coast.
For today, in the euro zone, Germany is to release preliminary inflation data and a report on the change in the number of people unemployed, the U.K. is to release survey data on manufacturing activity and the Institute for Supply Management is to release data on manufacturing activity.
On Monday, the euro lost some ground against the dollar, ending the session below the 1.05 level, remaining above 1.0352, the lowest since January 2003. The dollar remains well-supported thanks to expectations of higher U.S. growth and a faster pace of interest rate increases under president elect Donald Trump. The Federal Reserve hiked interest rates for the first time in a year earlier this month and projected three more increases in 2017. In contrast, central banks in Europe and Japan remain committed to very loose monetary policies. For today, in the euro zone, Germany is to release preliminary inflation data and a report on the change in the number of people unemployed, and the Institute for Supply Management is to release data on manufacturing activity. 
Pivot: 1.0495Support: 1.0445 1.0405 1.037Resistance: 1.0495 1.052 1.054Scenario 1: short @ 1.0475 with targets @ 1.0445 & 1.0405 in extension.Scenario 2: above 1.0495 look for further upside with 1.0520 & 1.0540 as targets.Comment: the upward potential is likely to be limited by the resistance at 1.0495.
Gold
Gold ended last week in positive territory after seven consecutive weekly declines, supported by government inflation data from Japan and rising geopolitical tensions.
Gold prices fell almost 8% in November amid rising U.S. bond yields and a rally in stock markets on the back of expectations for increased fiscal spending under the incoming Trump administration.
Analysts reckon broad concerns about European bank solvency and uncertainty surrounding President-elect Donald Trump's economic policies will likely bolster gold prices in 2017.
For today, the Institute for Supply Management is to release data on manufacturing activity while traders shift their focus on non-farm employment data due later in the week.
Pivot: 1152.6Support: 1152.6 1149.5 1145Resistance: 1160.5 1164 1168Scenario 1: long positions above 1152.60 with targets at 1160.50 & 1164.00 in extension.Scenario 2: below 1152.60 look for further downside with 1149.50 & 1145.00 as targets.Comment: the RSI is mixed to bullish.
WTI Oil
Oil prices gained in the first trading hours of 2017, supported by hopes that a deal between OPEC and non-OPEC members to cut production, which started on Sunday, will be effective in draining the global supply glut.
Market watchers said January will serve as an indicator for whether the agreement will bring results.
Brent crude oil prices were trading up 31 cents, or 0.55 percent, at $57.13 a barrel at 02:03 GMT on Tuesday close to last year's high of $57.89 per barrel, hit on Dec. 12. Oil markets were closed on Monday after the New Year's holiday.
Market participants will monitor closely how OPEC and non-OPEC major oil producers stand by the terms of the deal to cut production, while some of the attention will be shifted on inventory data due later this week.
Pivot: 53.75Support: 53.75 53.4 53.2Resistance: 54.5 54.75 55.1Scenario 1: long positions above 53.75 with targets at 54.50 & 54.75 in extension.Scenario 2: below 53.75 look for further downside with 53.40 & 53.20 as targets.Comment: the RSI broke above a declining trend line.
Germany 30
Most markets were closed on Monday for the post-New Year’s holiday, however, some European indices were trading and moving higher.
During European session, France’s CAC 40 gained 0.25%, while Germany’s DAX 30 traded up 0.85%. Italy’s FTSE MIB was Europe’s biggest drag with losses of about 10% for the year, which occurred despite a late year rally than allowed the index to recover 18%.
In a light calendar day, markets digested the health of the euro zone’s manufacturing sector. IHS Markit's final 2016 manufacturing purchasing managers' index for the euro zone registered 54.9 in December, in line with an earlier flash estimate and its highest since April 2011.
For today, in the euro zone, Germany is to release preliminary inflation data and a report on the change in the number of people unemployed
Pivot: 11535 Support: 11535 11480 11400 Resistance: 11655 11700 11750 Scenario 1: long positions above 11535.00 with targets at 11655.00 & 11700.00 in extension. Scenario 2: below 11535.00 look for further downside with 11480.00 & 11400.00 as targets. Comment: the RSI is bullish and calls for further upside.