What you need to know to operate this Wednesday, December 15:
The greenback is rising against most of its main rivals, growing during trading hours in the United States due to the higher returns and weaker stocks. The United States released the PPI for November, which jumped to a record 9.6% year-on-year, well above the previous 8.6%, while the underlying reading jumped from 6.8% to 7.7%. The news fueled risk aversion ahead of the US Federal Reserve’s monetary policy decision on Wednesday.
Some positive news from the pandemic front helped high-yielding currencies advance during the European session. Pfizer-BioNTench reported that two doses of its vaccine provide 70% protection against Omicron hospitalization and 33% protection against infection. So far, only the UK reported a death related to the newly discovered variant. Pfizer also reported that its experimental COVID-19 pill, Paxlovid, appears to be effective against Omicron and earlier variants.
The pair EUR/USD it is falling to a new weekly low of 1.1256, trading close to this level heading into the Asian open. The pair GBP/USD posted modest gains, helped by upbeat UK employment figures. Britain’s Office for National Statistics reported that the number of people claiming unemployment-related benefits decreased by 49,800 in November. In addition, the ILO unemployment rate fell to 4.2% during the three months from August to October.
Commodity-linked currencies extended their weekly declines, with AUD / USD struggling around 0.7100 and USD / CAD climbing as high as 1.2850. The dollar posted modest gains against safe havens CHF and JPY.
The US Federal Reserve will announce its decision on monetary policy. The central bank will also provide new updates on the forecasts of inflation and growth and a dot plot that could suggest a rate hike earlier than expected. In addition, Jerome Powell is expected to announce a faster pace of adjustment, although it is unclear to what extent amid the Omicron outbreak.
The oro fell, now trading around $ 1,772 a troy ounce, while crude prices also soared, with WTI trading around $ 70.40 a barrel.
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