The hope, as always, is that Q4 earnings and the entire coming year’s reports will rise to justify the market’s overvaluation. However, when earnings are rising, so are the markets.

Asian equity markets and currencies are under a little pressure today and have cast a slightly risk-off tone across global FX markets.

USD/JPY climbs quickly above 146.50 as investors reconsider bets supporting a rate cut from the Fed in March.

WTI Crude Price Dynamics: West Texas Intermediate (WTI) crude futures have stabilized above $72 per barrel, influenced by the dual factors of Middle East tensions and a complex global demand outlook.

The Euro has come under fresh selling pressure today on the back of comments from ECB’s Villeroy.

The US stock market did not trade yesterday due to the bank holiday.

I hope you all had a meaningful MLK holiday. A look at early morning futures action shows that the market is slightly unnerved. There certainly are enough reasons.

Asian stocks faced pressure in the absence of guidance from Wall Street, coupled with rising yields.

Data revealed a deceleration in British wage growth throughout November. Markets expect substantial interest rate cuts by the Bank of England this year.

A key level of interest in recent market behavior has been the $3.33 resistance point. The current stall in price movements around this level appears rational.

On the data front, German inflation confirmed a rise to 3.8% in December, up from 3.2% in November.

Gibraltar's stock has soared +54% over the last year with the company’s bottom line expansion sparking its stellar performance.

Gold remains locked in an uptrend, having recently found support at the rising trend line on the daily chart. This suggests continued buying pressure and opens the door for further upward movement in the coming days.

Indian share markets are trading muted with the Sensex and Nifty trading flat.

USD/CAD gains ground as investors turned back to the US Dollar. WTI price could rise on the escalated situation in the Red Sea; supporting CAD. BoC’s Business Outlook Survey Results showed that inflation could persist above the 2.0% target.

There was grim news for Europe as Germany announced pessimistic CPI figures, albeit in line with expectations. The country's inflation has risen by 3.7 percent in December 2023.

UK private sector pay growth now sits a fair bit below the Bank of England's November projections. That opens the door to a rate cut, though we think it requires further progress on both wages and services inflation.

The market will get back to fuller form as the US returns from the long weekend holiday.

The GBPJPY Elliott Wave analysis suggests that the market is currently within a corrective phase (Black wave C of 4), with a potential start of the next impulsive wave (Blue wave 5).

The Pound Sterling faces a sell-off after the release of lower-than-expected UK wage growth in the quarter to November.