Here is what you need to know on Thursday, December 12:
The US dollar remains on the back foot after Jerome Powell, Chairman of the Federal Reserve, clarified that his personal bar for raising rates is high. He first wants to see significant and persistent inflation before hiking. Earlier, the Fed left rates unchanged as expected and signaled no changes in 2020 via its dot-plot.
Sino-American relations: President Donald Trump is set to meet his trade negotiators today to discuss the next steps ahead of the December 15 deadline to impose new tariffs on China. Recent reports suggest that the world's largest economies have made progress in talks, but that Trump has yet to decide. Some speculate that the president will move forward with tariffs, and that is not priced in by markets.
UK elections: The latest opinion polls are showing a lead of around nine points for the Conservatives over Labour, but in many constituencies the race is tight. The recent YouGov MRP poll has shown a substantial narrowing of the projected Tory majority to 28 seats against 68 in its previous survey. GBP/USD has been hovering above 1.32 as tension is mounting. Rainy weather awaits voters.
See UK Elections Preview: Five scenarios for the vote and potentially wild GBP/USD reactions
EUR/USD is trading at six-week highs around 1.1150, buoyed by USD weakness and ahead of Christine Lagarde's first decision as president of the European Central Bank. Economists expect her to leave policies unchanged after the massive and controversial stimulus from her predecessor Mario Draghi. Recent economic figures have been encouraging but growth remains meager. Lagarde is set to announce a policy review for the first time in a decade.
See ECB Preview: How Lagarde's debut December decision may drive EUR/USD higher, three scenarios
The Swiss National Bank is set to leave its Libor Rate unchanged at -0.75%. The SNB has not altered its rate since removing the EUR/CHF peg in the infamous "SNBomb" in January 2015.
The US producer prices report is set to show moderate rises in November. The Core Consumer Price Index (Core CPI) came out at 2.3% as expected.
USD/CAD is trading below 1.32 ahead of a speech by Stephen Poloz, Governor of the Bank of Canada. Oil prices have stabilized with WTI trading around $59.
Cryptocurrencies have been consolidating losses, with Bitcoin trading above $7,100.
- Swiss rate decision (USD/CHF)
- ECB decision (EUR/USD)
- UK elections (GBP/USD)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD climbs to fresh daily highs near 1.0750
EUR/USD has regained its traction and climbed to a daily high near 1.0750. Despite the upbeat ADP employment data, the downward revision to Unit Labor Costs for Q1 and the sharp drop seen in ISM Manufacturing PMI's Prices Paid Index weighed heavily on USD, boosting the pair.
GBP/USD rises to multi-week highs above 1.2500
GBP/USD has extended its daily rally and touched its highest level since mid-May above 1.2500. The US Dollar continues to weaken against its rivals as soft wage inflation data feed into expectations for a pause in Federal Reserve rate hikes at the upcoming policy meeting.
Gold climbs above $1,980 as US yields extend slide
Gold price climbed above $1,980 in the American session on Thursday. Following soft manufacturing and wage inflation data from the US, the benchmark 10-year US Treasury bond yield is down more than 1% on the day near 3.6%, fuelling XAU/USD's daily rally.
XRP unlocks tokens worth $500 million as SEC vs. Ripple verdict looms
Ripple, the cross-border payment remittance giant, has unlocked a total of 1 billion XRP tokens from escrow on Thursday. This unlock is a part of the scheduled monthly distribution strategy of the XRP token.
LCID sheds 13% with $3 billion share sale
Lucid Group (LCID), the maker of the Lucid Air luxury electric sedan, surprised shareholders late Wednesday when it announced that it would raise $3 billion in new common stock.