untitled design

Forex Today: US Dollar Steady as Markets Await More Jobs Data

Here’s what you need to know to trade today Thursday December 7:

He DXY Dollar Index extended its winning streak on Wednesday and advanced to its highest level in almost three weeks above 104.00. On Thursday, in the United States, the data for the November job cuts and initial jobless claims. Early in the day, Eurostat will publish revisions to GDP growth and employment change for the third quarter.

On Wednesday, US data provided further signs of a cooling of the labor market, but the markets’ cautious stance helped the Dollar retain its strength for the third consecutive day. The November ADP employment change was 103,000, below market expectations of 130,000, and Unit Labor Costs fell 1.2% in the third quarter, a faster pace than analysts’ estimate of 0.9% . However, Wall Street’s main indices closed in negative territory and US stock index futures struggled to gain ground during the Asian session.

Dollar Quote this week

The following table shows the percentage change of the US Dollar (USD) against major currencies this week.

USD 1.16% 1.28% 0.86% 2.16% 0.10% 1.46% 0.91%
EUR -1.18% 0.13% -0.30% 1.03% -1.08% 0.33% -0.24%
GBP -1.32% -0.12% -0.43% 0.89% -1.21% 0.18% -0.38%
CAD -0.86% 0.31% 0.44% 1.33% -0.78% 0.63% 0.07%
AUD -2.21% -1.03% -0.90% -1.34% -2.14% -0.71% -1.27%
JPY -0.13% 1.09% 1.34% 0.79% 2.10% 1.39% 0.81%
NZD -1.48% -0.31% -0.19% -0.61% 0.71% -1.38% -0.56%
CHF -0.94% 0.25% 0.37% -0.05% 1.26% -0.82% 0.55%

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).

Early on Thursday, the General Customs Administration of the People’s Republic China reported that the trade surplus had increased from $56.53 billion to $68.39 billion in November. This figure exceeded analysts’ estimate of a surplus of $58.1 billion. On the negative side, imports decreased by 0.6% annually in the same period. Following this data, Hong Kong’s Hang Seng Index failed to gain bullish momentum and lost 1% on the day.

On Wednesday, the Bank of Canada kept the official interest rate at 5%, as expected. In the monetary policy statement, the BoC noted that the economy no longer had excess demand. He USD/CAD continued to rise after the BoC statement and traded slightly above 1.3600. Meanwhile, the barrel of West Texas Intermediate fell almost 4% on Wednesday and fell below $70 for the first time since late June, which was an additional drag on the commodity-sensitive CAD.

He EUR/USD It closed on Wednesday in negative territory for the sixth consecutive day. Early on Thursday, the pair is struggling to stage a rebound and is trading within a tight range slightly above 1.0750. Eurozone data showed that Retail sales fell 1.2% year-on-year in October.

After closing below 1.2600 on Wednesday, the GBP/USD continued to stretch lower and touched its weakest level since November 24 below 1.2550. At the time of writing, the pair is trading flat around 1.2560.

On Thursday, Bank of Japan Governor Kazuo Ueda discussed monetary policy options once ultra-loose rate policy is abandoned. “We could maintain the interest rate applied to reserves (financial institutions park with the central bank), or return to a policy aimed at the overnight interest rate,” Ueda told the Japanese parliament. “There are several options. But we have not yet made a decision on the interest rate we will target once we end our negative interest rate policy“he added. USD/JPY came under strong bearish pressure following these comments and fell towards 146.00, hitting its lowest level since early September.

Despite the general strength of the Dollar, the price of Gold held firm on Wednesday, supported by the decline in US Treasury yields. Early Thursday, XAU/USD remains relatively calm around $2,030.

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular