After the Federal Reserve, other central banks, such as the Bank of England, the European Central Bank, the Swiss National Bank and Norges Bank, will announce their monetary policy decisions. Important economic data will be released in the Asian session, such as New Zealand’s third quarter GDP and Australia’s employment report. In addition, Japan will publish data on machinery orders and industrial production.
Here’s what you need to know to trade today, Thursday, December 14:
Following the Federal Reserve meeting, the US dollar experienced a significant crash. As expected, the central bank decided to keep interest rates unchanged. Market analysts predict three rate cuts by 2024. Fed Chairman Jerome Powell was dovish, fueling the rally in Treasuries. He stopped short of declaring victory over inflation, but the markets did.
10-year yields fell more than 4%, hitting their lowest level since August. At the same time, the Dollar Index (DXY) fell 0.85% to 102.80, marking its lowest point in two weeks. The dollar is under pressure and appears to have resumed its bearish trend after a two-week correction.
Important data will be released in the United States on Thursday, including weekly jobless claims and retail sales.
He EUR/USD rose and reached the 20-day Simple Moving Average (SMA). However, the recovery encountered resistance around the 1.0900 level. The European Central Bank (ECB) will hold its monetary policy meeting and is expected to keep rates unchanged. The focus will be on the ECB’s tracks for 2024, especially regarding the timing of possible interest rate cuts.
He GBP/USD rebounded after the Fed meeting, hitting one-week highs above 1.2600. The technical outlook points to further increases. The key support level remains at 1.2500. The Bank of England will announce its monetary policy decision, and no changes to interest rates are expected.
TD Securities analysts on the BoE:
The Monetary Policy Committee is virtually guaranteed to maintain rates again, as weak data (particularly on wages and inflation) suggests that hikes are a thing of the past. Attention will focus on whether the Monetary Policy Committee deviates from the market appreciation that calls for aggressive cuts in May. Following declines in wages and GDP earlier this week, we now see a 7-2 vote.
He USD/JPY lost almost 300 points due to the weakness of the Dollar and the decline in Treasury yields. The pair fell below the 143.00 level. Despite Wall Street’s recovery, the Japanese Yen was one of the currencies that rose the most after the Federal Reserve meeting. Looking ahead, important data such as machinery orders and industrial production will be released in Japan following a positive Tankan survey.
He USD/CHF It resumed its decline towards the 20-day SMA and is currently testing the 0.8700 zone. The Swiss National Bank (SNB) is expected to keep interest rates unchanged, with the key rate at 1.75%.
He NZD/USD regained December highs and remains above 0.6200, showing strong bullish momentum ahead of the Asian session. New Zealand will release third quarter Gross Domestic Product (GDP) figures, with an expansion of 0.2% expected.
He AUD/USD posted its best performance in a month, breaking out of a multi-day range. The pair approached December highs, and the 0.6700 area is back on the radar. The Australian Employment Report for November will be published on Thursday, in which a positive change in employment of 11,000 people is expected after the increase of 55,000 recorded in October. The Melbourne Institute’s consumer inflation expectations report is also scheduled to be released.
He Gold shines again after rising more than 40 dollars in a few hours after the FOMC meeting. The XAU/USD reached the $2,020 area. If the decline in US yields continues, there could be more potential for gains. Silver also joined the recovery, rising more than 4%.
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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.
