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In Forex Market Despite conflicting macroeconomic data releases on Wednesday, the US Dollar (USD) was able to maintain its gains from Tuesday, as evidenced by the USD Index’s strong closing value. The USD remains mostly stable early on Thursday ahead of the weekly Initial Jobless Claims data and the December ADP Employment Change. Later in the European session, the Consumer Price Index (CPI) for December will also be released by Germany’s Destatis.
The US ISM Manufacturing PMI increased from 46.7 in November to 47.4 in December, indicating a decreasing rate of contraction in economic activity. Additional US data showed that the quantity of jobs November’s final business day had 8.79 million openings, a little decrease from October’s 8.85 million. Lastly, the Federal Reserve (Fed) stated in the minutes of the policy meeting held in December that a number of participants mentioned circumstances that would support keeping the policy rate at its current level for a longer period of time than they currently anticipated.
The yield on the benchmark 10-year US Treasury note erased its daily gains to settle flat on Wednesday, after ticking up beyond 4%. The 10-year yield is trading in a narrow range at 3.9% early on Thursday. Meanwhile, following Wednesday’s significant losses on Wall Street’s primary indexes, US stock index futures are trading slightly higher on the day in the European morning.
China’s figures earlier in the day showed that From 51.5 in November to 52.9 in December, the Caixin Services PMI increased. This number was higher than the 51.6 predicted by analysts.
Forex Market movement in pairs.
For the first time in more than two weeks, the EURUSD fell below 1.0900 on Wednesday; however, it later made a slight recovery during the American session. Early on Thursday, the pair stays silent below 1.0950.
The dramatic loss on Tuesday was followed by modest gains on Wednesday for GBPUSD. This morning in Europe, the pair is stable over 1.2650.
For the third straight trading day, the USDJPY pair closed in the green on Wednesday, and on Thursday, the Asian session saw more gains. The pair was up 0.3% on the day at 143.70 as of this writing.
In the American session, gold fell below $2,030 due to bearish pressure. on Wednesday. But XAUUSD gained traction when the 10-year yield dropped below 4%. The pair holds onto tiny, cheerful gains in the European morning trading, closing just below $2,050.
