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Summary
With the year about to close and a US tightening later in the week seen as a certainty, dollar bulls are hoping for a gift or two from Aunt Yellen. That the Fed is going to begin normalizing is soon is a given, that we will have a Fed Funds hike on Wednesday is highly likely. But will the dollar really rally further should not be taken as a given. MacroEconomics 101 tells us that with a tightening we get to see a stronger currency. But when a decision has been widely read murphys law should be considered by traders. Any further movement from the greenback will likely now depend more on the pace of tightening that will be suggested and not the act itself. Join Mark de la Paz and explore the options that traders have for that last big bet.Latest Live Videos
Editors’ Picks
AUD/USD now targets the 0.7150 zone
AUD/USD has rapidly left behind Tuesday’s pullback, advancing sharply to three-year highs past the 0.7100 barrier on Wednesday. The pair’s strong performance follows investors’ assessment of the RBA’s hawkish message and the likelihood of further tightening down the road.
EUR/USD faces next resistance near 1.1930
EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.
Gold holds on to higher ground ahead of the next catalyst
Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.
UNI faces resistance at 20-day EMA following BlackRock's purchase and launch of BUIDL fund on Uniswap
Decentralized exchange Uniswap (UNI) announced on Wednesday that it has integrated asset manager BlackRock's tokenized Treasury product on its trading platform via a partnership with tokenization firm Securitize.
US jobs data surprises to the upside, boosts stocks but pushes back Fed rate cut expectations
This was an unusual payrolls report for two reasons. Firstly, because it was released on Wednesday, and secondly, because it included the 2025 revisions alongside the January NFP figure.
Here is what you need to know on Thursday, February 12:
The United States (US) released stronger-than-expected US Nonfarm Payrolls report for January, adding 130K jobs in quite an auspicious start to the year, while the Unemployment Rate ticked lower to 4.3%, and Average Hourly Earnings held steady at 3.7% over the last twelve months.