Things to watch out for on Thursday, December 8:
The US dollar ended trading on Wednesday with losses against most of its main rivals, despite the bad mood in the markets. The slide was contained, but it is clear that the path has changed for the US currency and further declines are now on the agenda.
early in the day, China announced a series of measures that relax coronavirus restrictions, moving away from the zero-covid policy. However, the macroeconomic figures were discouraging. The trade balance for November registered a surplus of 69.840 million dollars, since exports fell by 8.7%, while imports fell by 1.1%. The bad numbers exacerbated concerns about the performance of the global economy.
Another risk aversion factor came from Moscow, in the middle of the US session. Russian President Vladimir Putin warned that the threat of nuclear war was growing, adding that nuclear weapons could be used to defend himself and his allies.
The US Treasury yield curve registered its biggest inversion in more than forty years, amid concerns related to global economic growth and uncertainty about the imminent monetary policy decision of the US Federal Reserve. Yields ended the day in the red as demand for government bonds revived following news from Russia. The 10-year Treasury yield is currently trading at 3.43%, while the 2-year Treasury yield is trading at 4.26%.
The Gross Domestic Product of area euro was better than expected in the third quarter of the year, with an annualized growth of 2.3%. The quarterly increase was 0.3%, better than the 0.2% forecast. EUR/USD fights against the 1.0500 level, trading a handful of points above.
The Bank of Canada raised its reference interest rate by 50 basis points, up to 4.25%, as expected. Policy makers noted that there is growing evidence that tighter monetary policy is training domestic demand, while acknowledging that inflation remains high. The central bank will study whether it is necessary to continue raising the interest rate. The USD/CAD pair went back and forth between gains and losses, ending the day around 1.3640.
GBP/USD is trading just above 1.2200, while AUD/USD hovers around 0.6730. USD/JPY fell to 136.30, while USD/CHF settled around 0.9400.
Gold benefited from the general weakness of the dollar and is trading around $1,787 a troy ounce, while crude oil prices remained under selling pressure. WTI is trading at $72.10 a barrel, its lowest level since December 2021
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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.
