Forex Today: US Dollar takes advantage of a dismal market mood

What you need to take care of on Wednesday, December 7:

Financial markets remained risk-averse, helping the US Dollar to advance on Tuesday. The American currency shed some ground throughout the first half of the day, but gathered momentum after Wall Street’s opening as US indexes fell for a fourth consecutive session.

The American Dollar finished the day at fresh weekly highs, particularly against its high-yielding rivals. The EUR/USD pair hovers around 1.460, while GBP/USD trades in the 1.2140 price zone.

Financial markets reflect increased uncertainty about the US Federal Reserve’s future actions. The central bank has hinted at an easing pace of quantitative tightening starting as soon as this month, despite economic resilience and signs of easing inflation. Both, policymakers and investors fear the aggressive pace of tightening will result in a long-lasting recession.

Meanwhile, European Central Bank Governing Council member Constantinos Herodotou said the central bank would hike rates again but warned they are near the neutral rate

Tensions between Europe and Russia escalate, as the latter is considering reducing oil production while setting a floor for oil sales in response to the G-7 decision to cap prices.

Crude oil prices were sharply down, with the barrel of WTI currently changing hands at $74 per barrel. The USD/CAD pair surged towards the 1.3660 price zone, where it currently trades.

The AUD/USD pair ended the day around 0.6680, following the lead of stocks and despite a hawkish RBA. Safe-haven CHF and JPY trimmed early gains vs the dollar and the pair ended the day pretty much unchanged.

Spot gold attempted to recover ground but closed Tuesday unchanged at around $1,770 a troy ounce.

Australia will publish its Q3 Gross Domestic Product early on Wednesday, and the economy is expected to have grown at an annualized pace of 6.3%. 

Like this article? Help us with some feedback by answering this survey:

Share: Feed news

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

Recommended content

Editors’ Picks

AUD/USD bounces back from five-month lows

AUD/USD bounces back from five-month lows

AUD/USD ends its three-day decline on Wednesday, bouncing back from levels not seen since mid-November. Nevertheless, hawkish remarks from Federal Reserve officials and the influx of safe-haven flows could bolster the US Dollar and potentially limit the upside of pair in the short term.


USD/JPY trades with mild losses below 155.00 on risk-aversion

USD/JPY trades with mild losses below 155.00 on risk-aversion

USD/JPY trades with mild losses near 154.65 on Wednesday during the early Asian trading hours. The robust US economy and sticky inflation data have triggered the expectation that the Fed might delay the easing cycle to September from June, which provides some support to the US Dollar.


Gold ascends but remains shy of testing $2,400 amid hawkish Fed remarks

Gold ascends but remains shy of testing $2,400 amid hawkish Fed remarks

Gold prices edged higher late in North American session, gaining 0.22% following a hawkish tilt by Fed Chair Jerome Powell. Economic data from the United States was mixed, though Monday’s Retail Sales report and Powell’s remarks kept US Treasury yields higher, capping the yellow metal’s advance.

Gold News Price Prediction: FET must hold above $1.70 for strength Price Prediction: FET must hold above $1.70 for strength is trading with a bearish bias. It comes as chatter about the proposed integration with the Ocean Protocol and the SIngularityNET ecosystem remains fresh.

Read more

UK CPI March Preview: Inflation pressures to dissipate further, adding to bets of BoE rate cuts

UK CPI March Preview: Inflation pressures to dissipate further, adding to bets of BoE rate cuts

The March UK CPI report will be released by the Office for National Statistics on Wednesday. United Kingdom’s headline and core annual inflation are set to ease in March. The UK CPI report could hint at the BoE’s interest rate cut, rocking the Pound Sterling.

Read more