Things to watch out for on Wednesday, December 7:
The markets financiers maintained their risk aversion, which helped the US dollar advance on Tuesday. The US currency gave up some ground during the first half of the day but gained momentum after the Wall Street open as US indices fell for the fourth session in a row.
The US currency ended the day at all-time weekly highs, especially against its high-yielding rivals. The pair EUR/USD is around 1,460, while the GBP/USD trades in the 1.2140 area.
The financial markets reflect greater uncertainty about the future performancesof the reserve us federal. The central bank has hinted at a reduction in the pace of quantitative tightening starting this month, despite economic resilience and signs of easing inflation. Policy makers and investors alike fear that the aggressive pace of tightening could lead to a long-lasting recession.
For his part, Constantinos Herodotou, member of the Governing Council of European Central Bank, stated that the central bank would raise rates again, but warned that they are close to the neutral rate.
Tensions between Europe and Russia are escalating as the latter considers cutting oil production while setting a floor for crude sales in response to the G-7 decision to cap prices.
Crude oil prices down, with WTI currently trading at $74 a barrel. The USD/CAD pair advanced towards the 1.3660 price zone, where it is currently trading.
The AUD/USD pair ended the day around 0.6680, following the trail of the values ​​and despite the posture of aggressive lineto the RBA. The safe-haven CHF and JPY pared early gains against the dollar and the pair ended the day largely unchanged.
Spot gold tried to regain ground but closed Tuesday unchanged around $1,770 a troy ounce.
Australia will release its third-quarter Gross Domestic Product early on Wednesday, and the economy is expected to have grown at an annualized rate of 6.3%.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
