FX Today: Australian, US jobs report take centre stage

Pablo Piovano FXStreet

The US Dollar (USD) sold off sharply on Wednesday, as investors continued to digest the largely anticipated rate cut by the Federal Reserve, while the updated “dots plot” surprised no one.

Here’s what to watch on Thursday, December 11:

The US Dollar Index (DXY) reversed two daily gains in a row and collapsed to multi-week lows in the 98.60-98.50 band amid declining yields following the FOMC event on Wednesday. The Balance of Trade results are due, seconded by the usual weekly Initial Jobless Claims and Wholesale Inventories.

EUR/USD regained strong traction and left behind four consecutive daily pullbacks, revisiting once again the vicinity of the 1.1700 hurdle. Next on tap on the domestic calendar will be Germany’s final Inflation Rate on December 12.

GBP/USD rose sharply and challenged monthly peaks in the area just shy of the 1.3400 barrier. The RICS House Price Balance is due, seconded by the speech by the BoE’s Kroszner.

USD/JPY dropped markedly toward the 155.80 zone following the post-FOMC marked pullback in the Greenback. The BSI Large Manufacturing index comes next, seconded by the weekly Foreign Bond Investment figures.

AUD/USD advanced to levels last seen in mid-September around 0.6680 in response to the marked decline in the buck. The release of the labour market report will take centre stage in Oz.

WTI prices reversed the initial decline and managed to regain the $59.00 mark per barrel, as traders continued to assess the geopolitical scenario and the Fed’s interest rate decision.

Gold prices rose to three-day highs near $4,240 per troy ounce in the wake of the FOMC gathering and amid the pronounced pullback in the Greenback and US Treasury yields. Silver prices, in the meantime, extended their rally to record highs near the $62.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD climbs to daily highs, focus on 1.1650

EUR/USD now picks up extra pace, climbing past the 1.1640 level, or daily highs, as the US Dollar continues to lose momentum. The move follows fresh tariff threats from President Trump against eight European countries opposing his proposal to take Greenland. With US stock and bond markets closed for Martin Luther King Jr. Day, trading conditions are likely to remain thin.

GBP/USD advances to two-day tops near 1.3420

GBP/USD found its footing after a soft start to the week, edging modestly above 1.3400 the figure on Monday. The British Pound gathers steam on the back of a weaker Greenback, as markets continue to evaluate President Trump’s latest tariff threats against Europe over Greenland.

Gold keeps the bid tone unchanged, still below $4,700

Gold drew strong buying interest at the start of the week, surging to a fresh record high near $4,700 per troy ounce. Markets turned more cautious after President Trump threatened tariffs on eight European countries opposing his plan to acquire Greenland, a shift that helped underpin the yellow metal.

Dogecoin, Shiba Inu, Pepe in a freefall, echoing Bitcoin’s drop

Meme coins, such as Dogecoin, Shiba Inu, and Pepe, extend the decline from last week, with a roughly 3% drop on Monday. The meme coins trade below the crucial moving averages, aiming for the immediate support to potentially reset the momentum.

When tariffs become ammunition and capital becomes the battlefield

Markets opened the week like a risk engine hitting a pothole at speed. Equities stepped back, gold vaulted to fresh highs, Treasuries caught a bid, and the dollar, outside of havens, took on a soft bid. This was not a data-driven wobble or a valuation purge.