FX Today: Australian, US Jobs Report Take Center Stage
The US Dollar (USD) experienced a sharp decline on Wednesday as investors processed the Federal Reserve's widely expected rate cut, with the updated 'dots plot' causing no surprises. Here's a breakdown of what to watch for on Thursday, December 11:
- US Dollar Index (DXY): Reversed two consecutive daily gains and plummeted to multi-week lows in the 98.60-98.50 range due to declining yields following the FOMC event. The Balance of Trade figures, Initial Jobless Claims, and Wholesale Inventories are all due out.
- EUR/USD: Regained strength and broke free from four consecutive daily declines, returning to the 1.1700 mark. Germany's final Inflation Rate on December 12 will be a key focus.
- GBP/USD: Soared, reaching monthly peaks just below the 1.3400 threshold. The RICS House Price Balance and a speech by BoE's Kroszner are on the agenda.
- USD/JPY: Dropped significantly towards the 155.80 zone after a post-FOMC pullback in the US Dollar. The BSI Large Manufacturing Index and weekly Foreign Bond Investment figures are upcoming.
- AUD/USD: Soared to September-level highs of 0.6680 in response to the US Dollar's decline. The Australian labor market report will be a major focus.
- WTI Prices: Reversed their initial decline and reclaimed the $59.00 per barrel mark as traders assessed geopolitical tensions and the Fed's interest rate decision.
- Gold Prices: Surged to three-day highs near $4,240 per troy ounce post-FOMC, alongside a pronounced pullback in the US Dollar and US Treasury yields. Silver prices extended their rally to record highs near $62.00 per ounce.
Stay tuned for these economic indicators and market movements, as they could significantly impact currency and commodity prices.
