FX Today: US PCE data takes centre stage alongside the flash U-Mich gauge

Pablo Piovano FXStreet

The US Dollar (USD) struggled for direction amid the ongoing and intense bearish trend in place since late November. Rising bets for a rate cut by the Federal Reserve (Fed) next week and discouraging data have been keeping the Greenback under scrutiny as of late, fuelling its downside momentum.

Here’s what to watch on Friday, December 5:

The US Dollar (USD) navigated an inconclusive session on Thursday, with the US Dollar Index (DXY) briefly slipping back to the 98.80-98.70 band, or fresh multi-week troughs. The publication of the PCE will wrap up the calendar alongside Personal Income/Spending, the flash U-Mich Consumer Sentiment and Factory Orders.

EUR/USD briefly reached new two-month tops past the 1.1680 mark before receding marginally on the back of humble gains in the US Dollar. German Factory Orders are expected, followed by EMU’s final Q3 Employment Change and the third estimate of the Q3 GDP Growth Rate.

GBP/USD faded part of Wednesday’s strong advance, receding toward the 1.3340 zone after climbing to as high as the 1.3370 zone. The BBA Mortgage Rate and the Halifax House Price Index will close the weekly UK docket.

USD/JPY added to Wednesday’s pullback, hitting new two-week lows in the mid-154.00s. A busy calendar in Japan will feature the key Reuters Tankan Index, Current Account results, the final Q3 GDP Growth Rate, Bank Lending figures and the Eco Watchers Survey.

AUD/USD finally reclaimed the 0.6600 barrier and beyond for the first time since early October. The next key event in Australia will be the interest rate decision by the RBA on December 9.

WTI prices rose to weekly highs, briefly surpassing the key $60.00 mark per barrel as traders continued to closely follow developments on the geopolitical front.

Gold swung between gains and losses on Thursday, hovering around the $4,200 mark per troy ounce as the upbeat momentum in global stocks continued to undermine the demand for the safe-haven metal. Silver prices sold off markedly, revisiting three-day lows near $56.50 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 strives to gain ground near 1.1770 on improving dovish Fed prospects

The EUR/USD pair attempts to regain ground near 1.1770 during the Asian trading session on Friday. The major currency pair attracts slight bids as the US Dollar ticks down amid an improvement in speculation that the Federal Reserve could cut interest rates in the March policy meeting.

GBP/USD drops to two-week low, around 1.3500

The GBP/USD pair adds to the previous day's dovish Bank of England-inspired heavy losses and drifts lower for the third straight day on Friday. The downward trajectory is sponsored by sustained US Dollar buying and drags spot prices to a two-week low during the Asian session, with bears now awaiting a break below the 1.3500 psychological mark before placing fresh bets.

Gold dip buyers emerge once again near $4,650

Gold bounces off $4,650 demand area yet again amid broad risk aversion. The US Dollar retreats from ten-day highs as buyers take a breather after the recent uptrend. Technically, Gold’s bullish trend remains intact, with dip-buying a key trading strategy.

Bitcoin, Ethereum and Ripple sink to multi-month lows

Bitcoin, Ethereum and Ripple slip to multi-month lows, erasing all gains since crypto-friendly candidate Donald Trump won the US presidential election in November 2024. BTC hits a low of $60,000 on Friday, while ETH nosedives to $1,750 and XRP to $1.11.

The AI mirror just turned on tech and nobody likes the reflection

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.

Bitcoin and top cryptos plummet further as analyst terms market crash 'structural'

Bitcoin has declined below $65,000 on Thursday, down 11% over the past 24 hours. The move marks its largest decline since the October 10 leverage flush. Since then, the top crypto has erased more than 50% of its value since the October 10 leverage flush.