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No economic release? No problem! Higher-yielding currencies took a breather from their gains today, as the dollar took back some of its losses from the previous session.

  • Japan’s markets still out on holiday
  • Trump: “I too have a Nuclear Button”

Major Events/Reports:

Kim Jong Un opens border hotline with South Korea

Earlier today an unidentified North Korean official shared that North Korea’s leader has given the order to open a long-closed border hotline with South Korea.

Before you get your hopes up, though, know that the official shared that the dialogue only aims to establish a North Korean delegation to the Pyeongchang Winter Olympics happening next month.

Still, the order came a day after South Korea proposed border talks in response to Kim Jong Un’s threats on Monday. Not surprisingly, the POTUS had a different (and more viral) reaction to the “Rocket Man’s” threats.

Mixed trading day

With not a lot of data on the docket and Japan’s markets still out for the New Year holiday, Asian session traders focused on a bit of profit-taking from the U.S. session’s moves.

  • Australia’s A SX 200 is down by 0.07% to 6,056.6;
  • Hang Seng is up by 0.33% to 30,615.8, and the
  • Shanghai index is up by 0.91% to 3,378.79.

Even commodities had different price reaction.

Gold dipped by 0.28% to $1,313.55 on a slight dollar recovery while Brent (+0.06%) and U.S. crude oil (+0.03%) prices recovered to $66.51 and $60.35 respectively after dipping in the previous session.

Major Market Mover(s):

AUD and NZD

The Aussie and Kiwi took the brunt of overall profit-taking and dollar recovery. Of course, it also didn’t help that Trump’s “my nuclear button is bigger than your nuclear button” tweet sparked a bit of risk aversion across the board.

AUD/USD is down by 20 pips (-0.26%) to .7811;
AUD/JPY is down by 16 pips (-0.18%) to 87.76;
NZD/USD is down by 23 pips (-0.32%) to .7085, and
NZD/JPY is down by 22 pips (-0.28%) to 79.58.

USD

The Greenback edged higher against its counterparts after slipping during the previous session.

EUR/USD dipped by 7 pips (-0.06%) to 1.2047;
USD/JPY crawled 8 pips (+0.08%) higher to 112.35;
USD/CAD popped up by 15 pips (+0.12%) to 1.2521.

Watch Out For:

  • 7:00 am GMT: U.K. Nationwide house price index to remain at 0.1%?
  • 7:00 am GMT: U.K. Nationwide house prices (y/y) (2.0% expected, 2.5% previous)
  • 8:00 am GMT: Spain’s unemployment change (-58.7K expected, 7.3K previous)
  • 8:30 am GMT: Switzerland’s manufacturing PMI (64.6 expected, 65.1 previous)
  • 8:55 am GMT: Germany’s unemployment change (-13K expected, -18K previous)
  • 9:30 am GMT: U.K.’s construction PMI (52.8 expected, 53.1 previous)