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In Forex after a dramatic drop on Tuesday due to weak US inflation statistics, the US Dollar (USD) Index recovered marginally on Wednesday and managed to extend its gains early Thursday. In the second half of the day, the US economic docket will include weekly Initial Jobless Claims, the Philadelphia Fed Manufacturing Survey, and Industrial Production data for October. Loretta Mester, John Williams, and Governor Lisa Cook of the Federal Reserve (Fed) will talk during American trading hours. Christine Lagarde, President of the European Central Bank, will also make pre-recorded remarks at the Annual European Systemic Risk Board Online Conference.
The information Retail sales in the United States fell less than predicted in October, while producer inflation continued to slow. As the risk surge fizzled out following mixed data releases, Wall Street’s main indexes closed flat, and the USD held its own against its major rivals.
The Australian Bureau of Statistics revealed during Asian trading hours that the unemployment rate increased to 3.7% in October from 3.6% in September. The participation rate increased to 67% from 66.8% in the same period, while the employment change was +55,000, far exceeding the market expectation of a +20,000 gain. Other Australian data indicated that Consumer Inflation Expectations increased to 4.9% in November from 4.8% in October. The AUDUSD pair has shifted. Following these data releases, the market fell and broke below 0.6500.
Today currencies movement in pairs.
The EURUSD encountered resistance before reaching 1.0900, and it suffered minor losses on Wednesday. Early Thursday, the pair is trading in a narrow channel at about 1.0850.
After gaining above 1.2500 on Wednesday, GBPUSD staged a technical correction and continued to fall early Thursday. At the time of publication, the pair was trading in the red, below 1.2400.
On Wednesday, the USDJPY surged approximately 100 pips and closed above 151.00. On Thursday morning in Europe, the pair is trading in a narrow channel just below 151.50.
As the benchmark 10-year US Treasury bond yield returned toward 4.5%, gold struggled to maintain its positive momentum. Following a flat day on Wednesday, XAUUSD began to surge toward $1,970 early Thursday.
