The Greenback traded on the defensive for the second day in a row on Wednesday amid lower yields and the absence of news in Powell’s remarks at an event hosted by the New York Times.
Here is what you need to know on Thursday, December 5:
The US Dollar Index (DXY) kept the trade in the low-106.00s against the backdrop of diminishing yields and further recovery in the risk complex. The October’s Balance of Trade figures are due, along with the usual weekly Initial Jobless Claims, and Challenger Job Cuts. Furthermore, the Fed’s Barkin is expected to speak.
EUR/USD added to recent gains and looked to consolidate the breakout of the key 1.0500 barrier. The HCOB Construction PMI in Germany and the euro area are expected, seconded by Factory Orders in Germany, and Retail Sales in the euro zone. In addition, the ECB’s Montagner is due to speak.
GBP/USD managed to trespass the key 1.2700 hurdle amid the widespread rebound in the risk-associated assets and the weak tone in the Greenback. Next on tap is the S&P Global Construction PMI, followed by New Car Sales, and the BoE’s Decision Maker Panel. In addition, the BoE’s Greene will speak.
USD/JPY rebounded further and briefly rose to three-day highs north of the 151.00 barrier, although it loss some impulse towards the end of the NA session. The weekly Foreign Bond Investment figures will be published seconded by the speech by the BoJ’s Nakamura.
There was no respite for the selling pressure in AUD/USD, which this time challenged the key contention zone near 0.6400, weighed down by poor data in Oz. The Balance of Trade results take centre stage Down Under.
Prices of WTI plummeted below the $69.00 mark per barrel following the mixed report by the EIA despite geopolitical concerns remained well in place.
Prices of Gold added to Tuesday’s uptick and maintained their gradual uptrend alive, this time flirting with the $2,660 mark per troy ounce. Silver prices rose for the second consecutive day and confronted four-week highs near the $31.50 region per ounce.
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GBP/USD extends its weekly slide and trades at its weakest level since November 2023 below 1.2250. The data from the US showed that Nonfarm Payrolls rose by 256,000 in December, fuelling a US Dollar rally and weighing on the pair.
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