USD steady near 200-DMA ahead of key US jobs data – BBH

FXStreet Insights Team FXStreet

US Dollar (ISD) is steady near yesterday’s high, with the dollar index (DXY) trading just 0.3% below its 200-DMA, BBH FX analysts report.

Weakening labor demand could support 2026 rate cuts

"Today’s December ADP employment and November JOLTS report are policy relevant. Consensus expects ADP private payrolls at +50k vs. -32k in November. Still, that’s unlikely to ease concerns about weakening labor demand. An average of -13k jobs was lost in September, October, and November."

"Meanwhile, further declines in the JOLTS hiring and quit rates would add to signs of worsening labor demand. If so, it would validate the 50bps of cuts priced into Fed funds futures over 2026 and weigh on USD."

"US December ISM services index is expected to remain indicative of solid services sector activity. The headline index is projected at 52.2 vs. 52.6 in November. However, a further decline in the prices paid sub-index would support the case for additional Fed funds rate cuts."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY weakens below 157.50 after BoJ keeps rates unchanged

USD/JPY drifts lower for the third straight day, sliding below mid-157.00s during Friday’s Asian session after the widely expected BoJ on-hold rate decision. Meanwhile, the US Dollar selling remains unabated amid hopes for Middle East diplomacy. Moreover, declining US bond yields narrow the US-Japan yield differential, benefiting the Japanese Yen and weighing on the currency pair.

Gold falls to near $4,000 as US PCE data reinforces December Fed hike odds

Gold price falls to around $4,015 during the early Asian session on Friday. The precious metal loses ground as US inflation data reinforced expectations ‌of a Federal Reserve interest rate hike later this year.

The hawkish Fed can't lift the US Dollar anymore

About three more Federal Reserve hikes are already priced in, and the central banks behind the Euro, Pound, Yen and Loonie are raising rates or about to. That leaves the US Dollar Index with little to gain if the Fed keeps leaning toward higher rates.

Binance hack puts crypto exchange custody risk back in focus

Binance is investigating a major security incident after billions of dollars in crypto assets moved from wallets associated with the exchange. The final scale of the incident remains unclear.

A hot US economy is supposed to sink Gold. It didn't. Here's why

Gold (XAU/USD) remains under pressure near $4,000, as stronger-than-expected United States (US) economic data reinforce expectations of another Federal Reserve (Fed) interest rate hike in December. Economic growth is accelerating, inflation remains elevated, and borrowing costs could rise further.