Here is everything you need to know about Forex market on Thursday.
In Forex market US Dollar (USD) Index continued its winning streak on Wednesday, rising above 104.00 for the first time in nearly three weeks. On Thursday, the US economic calendar will include statistics on challenger job cuts for November and weekly initial jobless claims. Eurostat will provide revisions to third-quarter GDP growth and employment change earlier in the day.
On Wednesday, US statistics showed fresh symptoms of a weakening labor market, but the cautious market approach helped the USD maintain its strength for the third day in a row. ADP Employment Change for November was 103,000, falling short of the market expectation of 130,000, and Unit Labor Costs In the third quarter, GDP fell by 1.2%, quicker than the 0.9% predicted by economists. Despite this, Wall Street’s main indexes ended in the red, and US stock index futures struggled to get traction in Asian trading hours.
The General Administration of Customs of the People’s Republic of China stated early Thursday that the trade surplus increased to $68.39 billion in November, up from $56.53 billion in October. This figure exceeded economists’ expectations of a $58.1 billion surplus. On the negative side, imports fell 0.6% year on year during the same time. Following these readings, the Hang Seng Index in Hong Kong failed to gain traction, and it was last observed losing 1% on a daily basis.
Forex market movement in Pairs
The Bank of Canada (BoC) abandoned the program. GBPUSD continued to fall on Wednesday, reaching its lowest level since November 24 below 1.2550. The pair was trading flat at approximately 1.2560 at the time of publication.
On Thursday, Bank of Japan Governor Kazuo Ueda discussed policy alternatives once they exited the ultra-loose policy. “We could either keep the interest rate applied to reserves (financial institutions park with the central bank), or revert to a policy targeting the overnight call rate,” Ueda, a member of the Japanese parliament, said. “There are several alternatives. “However, we have not yet decided which interest rate to target once our negative interest rate policy ends,” he continued. As a result of these statements, the USDJPY fell sharply to 146.00, marking a new low. In the process, it has reached its lowest level since early September.
Despite widespread USD rise, gold held steady on Wednesday, helped by falling US Treasury bond yields. XAUUSD is rather quiet early Thursday, hovering around $2,030.
