Here is what you need to know on Friday, December 9:
The US Dollar continues to have a hard time finding demand amid retreating US Treasury bond yields on Friday with the US Dollar Index edging lower toward 104.50 after having closed the last two days in negative territory. The market mood remains upbeat on the last trading day of the week and US stock index futures trade modestly higher. The Producer Price Index (PPI) data for November will be featured in the US economic docket alongside the University of Michigan's preliminary Consumer Sentiment Survey for December.
Earlier in the day, the data from China showed that inflation, as measured by the Consumer Price Index (CPI), declined to 1.6% on a yearly basis in November from 2.1% in December. This reading came in higher than the market expectation of 1%. Meanwhile, China’s Premier Li Keiang said that the risk of a global recession was increasing but added that the Chinese economy was currently in a 'stable state' after reversing the economic decline in the third quarter. Nevertheless, The Shanghai Composite Index and Hong Kong's Hang Seng Index both remain on track to post daily gains.
EUR/USD gained 50 pips on Thursday and preserved its bullish momentum early Friday. The pair continues to edge higher toward 1.0600, where it will set a fresh multi-month high. European Central Bank (ECB) Governing Council member and French central bank governor Francois Villeroy de Galhau warned on Friday, “a temporary recession cannot be excluded," but these comments had little to no impact on the Euro's performance against its rivals.
GBP/USD registered small daily gains on Thursday and was last seen trading modestly higher on the day above 1.2250. The Bank of England will release the Consumer Inflation Expectations data later in the session.
USD/JPY closed virtually unchanged on Thursday and started to stretch lower toward 136.00 early Friday.
Gold price gained traction during the Asian trading hours on Friday and started to climb higher toward $1,800. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 3.5%, helping XAU/USD preserve its bullish momentum.
Bitcoin continues to fluctuate in its weekly range at around $17,000. Ethereum gained nearly 4% on Thursday and was last seen consolidating its gains slightly below $1,300.
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.
Recommended content
Editors’ Picks
EUR/USD consolidates below 1.0850 amid upbeat mood
EUR/USD is easing below 1.0850 in the early European morning. Traders turn cautious, despite easing banking fears, as the focus shifts toward the euro area inflation data. The pair's pullback could be also attributed to a broad US Dollar rebound.
GBP/USD turns south toward 1.2300 as US Dollar rebounds
GBP/USD is heading back toward 1.2300, fading the Asian bounce in early Europe. Broad-based US Dollar rebound, despite a better market mood and sluggish US Treasury bond yields, is weighing on the pair. US housing data awaited.
Gold declines towards $1960 as USD rebounds ahead of Core PCE Price Index
Gold price is declining towards $1960.00 as investors are getting anxious ahead of US PCE inflation data. The reputation of Gold as a safe-haven amid US banking jitters has ebbed. On a broader note, Gold price is auctioning in a Symmetrical Triangle chart pattern.
Ethereum supply shrinks by 70,000 ETH. Will Ethereum price hit $2,000?
Ethereum transition from Proof-of-Work to Proof-of-Stake was the last major upgrade to the altcoin’s blockchain and the Shanghai hard fork is the next one. The shift to PoS purged 70,000 ETH tokens from the altcoin’s circulating supply.
Market mood improves as banking fears ease
This week, financial markets will focus on key inflation figures from across the globe, speeches by Fed officials, and the US Senate hearings on SVB. Although some normality seems to be returning to markets, this could easily be disrupted by negative news.