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Forex Today: Dollar consolidates gains ahead of key data

This is what you need to know to trade today Tuesday December 5:

The US dollar (USD) took advantage of safe-haven flows and rising US Treasury yields to outperform its main rivals at the start of the week. After advancing nearly 0.5% on Monday, the USD Index (DXY) stabilized above 103.50 early Tuesday, with investors focused on October JOLTS job openings data and the Services PMI survey of the November ISM.

Wall Street’s main indices opened in negative territory and continued lower in the first trading day of the week, as participants moved away from risk assets amid growing fears that the crisis between Israel and Hamas could become a widespread conflict in the Middle East. At the time of writing, US index futures were down between 0.2% and 0.4%, showing no signs of improvement in risk appetite. Regarding the situation in Gaza, “every time we think things can’t get any more apocalyptic, they do,” Martin Griffiths, the UN’s top emergency relief official, said in a statement on Monday, as reported by CNN. “People are being ordered on the move again, with little to survive on, forced to make one impossible decision after another.”

Following the December monetary policy meeting, the The Reserve Bank of Australia (RBA) announced that it was leaving the official interest rate unchanged at 4.35%, as expected. “The need for further tightening of monetary policy to ensure that inflation returns to target within a reasonable time will depend on the data and the evolution of the risk assessment,” the RBA repeated in its statement. The pair AUD/USD came under bearish pressure and fell below 0.6600.

Price of the Dollar this week

The following table shows the percentage change of the United States Dollar (USD) against the main currencies quoted this week. The USD was the strongest currency against the Australian Dollar.

USD 0.53% 0.65% 0.54% 1.50% 0.35% 0.95% 0.54%
EUR -0.55% 0.13% 0.01% 0.99% -0.19% 0.45% 0.02%
GBP -0.67% -0.12% -0.11% 0.86% -0.30% 0.31% -0.10%
CAD -0.54% -0.04% 0.12% 0.98% -0.20% 0.47% 0.01%
AUD -1.51% -1.00% -0.87% -0.97% -1.18% -0.53% -0.96%
JPY -0.39% 0.16% 0.46% 0.21% 1.18% 0.66% 0.19%
NZD -0.98% -0.45% -0.32% -0.43% 0.54% -0.62% -0.43%
CHF -0.56% -0.02% 0.10% -0.01% 0.96% -0.19% 0.41%

The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the euro in the left column and scroll down the horizontal line to the Japanese yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).

He EUR/USD It fell towards 1.0800 on Monday and hit its lowest level in more than two weeks. Although the pair bounced towards the 1.0850 area towards the end of the American session, it struggled to maintain its recovery momentum and today, Tuesday, retested yesterday’s three-week lows at 1.0804.

He GBP/USD It lost more than 50 points on Monday and is once again under downward pressure today. No relevant macroeconomic data will be published in the United Kingdom’s economic agenda.

He USD/JPY recorded small gains on Monday, but has failed to establish itself above 147.00 during Asian trading hours on Tuesday. Data from Japan earlier in the day showed that the Tokyo Consumer Price Index rose 2.6% year-on-year in November, a softer pace than the 3.3% increase recorded in October.

He Gold made a sharp downward correction after hitting a new all-time high near $2,150 on Monday and closed deep in negative territory. The XAU/USD remains trading below $2,050 this Tuesday.

Source: Fx Street

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