Gold prices and U.S. equities posted moderate losses as the curtain rose on the first trading week of 2024, pressured by a significant rally in Treasury yields and a rise in the U.S. dollar, a move that was bolstered by the strong December U.S. jobs report.

In late 2023, traders got ahead of themselves and priced in deep rate cuts for the coming year. While the U.S. central bank signaled it would cut borrowing costs over the medium term, economic resilience and extreme easing in financial conditions could delay the start of the easing cycle, setting up markers for a deeper reversal in the coming weeks.

If the typical mean reversion of returns unfolds, gold and risk assets could be in for a rude awakening after their strong performance in the fourth quarter. The euro, British pound and Japanese yen could also weaken against the greenback, erasing some of the gains of the latter stages of 2023.

Different and complex market dynamics are likely to play out at the onset of 2024, creating attractive trade opportunities and setups for key assets. For a deeper dive into catalysts that could affect currencies, commodities (gold, silver, oil) and cryptocurrencies in the near term, check out DailyFX's Q1 technical and fundamental forecasts.

For a complete overview of the U.S. dollar’s technical and fundamental outlook, request your complimentary Q1 trading forecast now!

TECHNICAL AND FUNDAMENTAL FORECASTS FOR Q1

British Pound Q1 Technical Outlooks – GBP/USD and EUR/GBP

This article focuses on the Q1 technical outlook for the British pound and examines important FX pairs such as GBP/USD and EUB/GBP, analyzing price action dynamics and market sentiment.

Australian Dollar Q1 Fundamental Forecast: Monetary Policy Will Take Center Stage

This article zeroes in on the Q1 fundamental outlook for the Australian dollar, investigating key catalysts that could serve as guiding forces for the currency in the months to come.

Bitcoin Q1 Technical Outlook: Chart Signals Remain Constructive

Bitcoin had a strong performance in 2023, with the bottoming-out pattern between November 2022 and January 2023 prompting a wave of higher lows and higher highs. This trend may extend into Q1, 2024.

Euro Q1 Fundamental Forecast: Euro Reveals Green Shoots of Optimism

This article concentrates on the Q1 fundamental outlook for the euro, delving into pivotal catalysts that may shape the currency's trajectory in the upcoming months.

Crude Oil Q1 Technical Forecast: Broad Trading Range Looks Set to Stick

This article centers on the Q1 technical outlook for oil, closely scrutinizing both price action dynamics and market sentiment to unveil insights into the next big possible moves.

Japanese Yen Q1 Fundamental Forecast: Yen Likely to Gain, But Thanks to Fed, Not BoJ

This article places its focus on the Q1 fundamental outlook for the Japanese yen, examining pivotal catalysts that could mold the currency's trajectory over the next three months.

Gold, Silver Q1 Technical Forecast: Price Action Setups for the Near Term

The article focuses on the technical outlook for gold and silver in the first quarter, analyzing price action dynamics and interesting trading setups that could signal bullish continuation patterns.

Equities Q1 Fundamental Outlook: Rate Cuts and Geopolitics in Focus

This article focuses on analyzing the Q1 fundamental outlook for U.S. equity indices, delving into crucial catalysts that may spur volatility and determine the stock market trajectory in the coming months.

US Dollar Q1 Technical Forecast – Setups on DXY, EUR/USD, USD/JPY, GBP/USD

This article centers on the Q1 technical outlook for the U.S. dollar, delving into key FX pairs like EUR/USD, USD/JPY, and GBP/USD while dissecting price action dynamics that may provide insight into the market trajectory.

Fine-tune your trading skills and stay proactive in your approach. Request the EUR/USD forecast for an in-depth analysis of the euro’s fundamental and technical outlook!

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