US Market Open: Geopolitics and Energy Stocks Take Center Stage. The USD is mixed

The US Dollar enters the first full trading week of the year with a mixed performance across the major pairs. While the greenback has gained 0.32% against the Euro, it has softened against the Japanese Yen (-0.16%) and the British Pound (-0.06%) as the North American session begins.

In the featured video above, Greg Michalowski, author of Attacking Currency Trends, provides a deep-dive technical analysis into the EURUSD, USDJPY, and GBPUSD to help traders navigate these early-week shifts.

Equities: Energy and Tech Lead Premarket Gains

US stock indices are showing resilience this morning, driven by a combination of geopolitical developments and continued momentum in the semiconductor space.

Index Futures Performance

The “Venezuela Effect” on Energy

Energy giants are seeing significant premarket buying interest following the U.S. capture of Venezuela’s leader. Markets are pricing in the potential easing of sanctions, which could grant U.S. firms access to massive oil reserves.

Safe Havens and Commodities

Despite a slight dip in crude prices earlier today, gold and silver remain well-supported as investors hedge against geopolitical uncertainty.

• Gold: Trading at $4,414.07 (up 1.91%). Investors are eyeing the all-time high of $4,550.52 reached last week.

• Silver: Trading at $75.00 (up 3.00%), recovering from a mid-week dip to $70.

• Crude Oil: Currently higher by $0.36 at $57.68, rebounding from a daily low of $56.31.

Gold miners like Newmont (+2.0%) and Barrick Gold (+1.80%) are benefiting from this “flight to safety.”

Technology and Crypto Momentum

The AI and semiconductor narrative continues to provide a floor for the NASDAQ. AMD (+2.77%), Nvidia (+1.4%), and Broadcom (+1.32%) are all trending higher.

In the crypto space, Bitcoin has advanced by $1,269 (1.40%) to reach $92,770, providing a tailwind for Coinbase, which is up 4.59% in early trading.

Fixed Income: Yields Soften

In the U.S. debt market, Treasury yields are seeing a modest decline across the curve:

• 2-year yield: 3.465% (-1.2 bps)

• 10-year yield: 4.173% (-1.6 bps)

• 30-year yield: 4.862% (-0.2 bps)

Economic Data: ISM Manufacturing PMI

Today’s economic prints suggest the manufacturing sector remains in a contractionary phase (below the 50.0 threshold), though some stabilization is evident.

• ISM Manufacturing PMI: 48.4 (Slightly above the prior 48.2)

• ISM Prices Paid: 57.0 (Down from 58.5, suggesting easing inflation)

• ISM Employment: 44.0 (Signals continued pressure on labor)

• ISM New Orders: 47.4 (Demand remains weak)