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Forex Today: Focus on Bank of Canada rate decision and US employment data

This is what you need to know to trade today Wednesday December 6:

The US dollar outperformed its rivals for the second day in a row on Tuesday, with the USD Index rising to its highest level in almost two weeks. As investors await ADP private employment data for November, the USD index consolidates its weekly gains near 104.00. The goods trade balance for October and unit labor costs for the third quarter will also be published on the US economic agenda. The Bank of Canada (BoC) will announce its interest rate decision in the second half of the day.

U.S. data on Tuesday showed business activity in the services sector expanded at a stronger-than-expected pace in November. In October, the number of job openings fell to 8.7 million, down from 9.35 million in September. Although mixed data limited the dollar’s gains in the early stages of the American session, cautious markets helped the currency gain strength before the end of the day.

Dollar prices this week

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

USD 0.96% 0.90% 0.62% 1.44% 0.46% 0.81% 0.81%
EUR -0.99% -0.05% -0.36% 0.47% -0.52% -0.16% -0.15%
GBP -0.94% 0.06% -0.30% 0.53% -0.44% -0.11% -0.09%
CAD -0.62% 0.36% 0.31% 0.83% -0.16% 0.20% 0.21%
AUD -1.46% -0.48% -0.53% -0.85% -1.00% -0.63% -0.63%
JPY -0.49% 0.50% 0.59% 0.18% 1.01% 0.33% 0.35%
NZD -0.83% 0.15% 0.09% -0.20% 0.63% -0.36% -0.01%
CHF -0.84% 0.15% 0.09% -0.21% 0.64% -0.36% 0.00%

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).

Meanwhile, credit agency Moody’s on Tuesday cut its outlook on China’s sovereign credit rating to “negative” from “stable,” citing rising risks to growth and a real estate crisis in the world’s second-largest economy, according to Reuters reported.

He EUR/USD It failed to shake off the downward pressure and closed the fifth consecutive day in negative territory on Tuesday. The pair remains lower early on Wednesday and is trading below 1.0800. Eurostat will publish Eurozone October retail sales data in the European morning.

He USD/CAD It advanced to the 1.3600 area on Tuesday, but lost traction early on Wednesday. The Bank of Canada is expected to keep its interest rate at 5%.

HeGBP/USD posted losses on Tuesday, but managed to stabilize around 1.2600 early on Wednesday. The Financial Policy Committee of the Bank of England (BoE) will publish a statement after its latest meeting.

Bank of Japan (BoJ) Deputy Governor Ryozo Himino stated on Wednesday that he has no pre-established timetable in mind for exiting expansionary monetary policy. He USD/JPY fell slightly following these comments and is now fluctuating in a narrow channel around 147.00.

He Gold It extended its downward correction after Monday’s volatility and fell to the $2,010 area on Tuesday. XAU/USD gained ground early on Wednesday and is currently trading in positive territory around $2,030.

Source: Fx Street

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