US dollar rallies as markets eye PPI Data and Fed speeches
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The US Dollar (USD) continues its post-election surge, bolstered by high Treasury yields and inflationary expectations tied to President-elect Trump’s policies. Market attention is focused on today’s US PPI and Jobless Claims data, along with speeches from Fed Chair Powell and other policymakers. Meanwhile, JPY, AUD, and EUR remain weak as traders assess economic signals from central banks and global data.
Key Market Themes: USD Strength Persists Amid Policy and Inflation Focus
The USD maintains its rally across the forex board, supported by inflationary expectations linked to Trump’s pro-growth policies and higher US Treasury yields. After a mixed session on Wall Street, Asian markets have turned lower due to ongoing concerns about China’s economic outlook and limited optimism around recent stimulus efforts.
Top Events to Watch Today
US PPI and Jobless Claims:
The Producer Price Index (PPI) and Jobless Claims data are in focus as traders gauge the potential trajectory for Fed policy. With the market’s expectation for a December rate cut at 83%, any deviation in PPI data may influence rate expectations further.
Fed Chair Powell’s Speech:
Jerome Powell and several Fed officials are expected to offer insights into the Fed’s stance on interest rates amid sticky inflation data. Market participants will closely analyze Powell’s remarks for signs of how inflation risks may alter future policy shifts.
Currency Market Highlights
USD/JPY: The yen remains pressured, with USD/JPY trading above 156.00, its highest in four months, as the BoJ remains cautious on rate hikes. AUD/USD and NZD/USD: Both currencies extend losses, with AUD/USD at a three-month low near 0.6460 following weaker labor data. NZD/USD follows commodity currency weakness as risk sentiment wanes. EUR/USD and GBP/USD: EUR/USD is at yearly lows near 1.0550, while GBP/USD struggles around 1.2700 amid a strong USD. ECB and BoE speakers are awaited for additional direction.
Commodities Update
Gold: The precious metal remains under pressure, trading near $2,560. The key support level at $2,545, marked by the 100-day SMA, remains crucial for buyers to defend amid USD strength. Oil: WTI oil extends its decline, trading just above $68 as concerns around Chinese demand impact prices. Outlook
As the USD maintains its upward momentum, traders will be watching US data releases and Fed commentary closely. The direction of major currency pairs remains skewed toward further USD strength, with key technical levels in gold and oil adding further context to today’s trading dynamics.
Key Market Themes: USD Strength Persists Amid Policy and Inflation Focus
The USD maintains its rally across the forex board, supported by inflationary expectations linked to Trump’s pro-growth policies and higher US Treasury yields. After a mixed session on Wall Street, Asian markets have turned lower due to ongoing concerns about China’s economic outlook and limited optimism around recent stimulus efforts.
Top Events to Watch Today
US PPI and Jobless Claims:
The Producer Price Index (PPI) and Jobless Claims data are in focus as traders gauge the potential trajectory for Fed policy. With the market’s expectation for a December rate cut at 83%, any deviation in PPI data may influence rate expectations further.
Fed Chair Powell’s Speech:
Jerome Powell and several Fed officials are expected to offer insights into the Fed’s stance on interest rates amid sticky inflation data. Market participants will closely analyze Powell’s remarks for signs of how inflation risks may alter future policy shifts.
Currency Market Highlights
USD/JPY: The yen remains pressured, with USD/JPY trading above 156.00, its highest in four months, as the BoJ remains cautious on rate hikes. AUD/USD and NZD/USD: Both currencies extend losses, with AUD/USD at a three-month low near 0.6460 following weaker labor data. NZD/USD follows commodity currency weakness as risk sentiment wanes. EUR/USD and GBP/USD: EUR/USD is at yearly lows near 1.0550, while GBP/USD struggles around 1.2700 amid a strong USD. ECB and BoE speakers are awaited for additional direction.
Commodities Update
Gold: The precious metal remains under pressure, trading near $2,560. The key support level at $2,545, marked by the 100-day SMA, remains crucial for buyers to defend amid USD strength. Oil: WTI oil extends its decline, trading just above $68 as concerns around Chinese demand impact prices. Outlook
As the USD maintains its upward momentum, traders will be watching US data releases and Fed commentary closely. The direction of major currency pairs remains skewed toward further USD strength, with key technical levels in gold and oil adding further context to today’s trading dynamics.