US Dollar strengthens as december kicks off with key data releases
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The US Dollar begins December on a strong note, rebounding from recent losses as traders await high-tier economic data, including the ISM Manufacturing PMI and Construction Spending reports. President-elect Donald Trump’s comments targeting BRICS nations further bolster the Greenback, which trades above the 106.00 mark against a backdrop of cautious market sentiment. Key currency pairs, including EUR/USD and GBP/USD, face modest corrections after recent gains, while Gold slides below $2,630 amid USD recovery.
USD Rebound Supported by Hawkish Sentiment
The US Dollar has regained its footing after a challenging November, driven by expectations that President-elect Donald Trump's policies will prioritize US economic dominance. His threat of imposing 100% tariffs on BRICS nations looking to replace the USD in international trade reinforces investor confidence in the Greenback’s role as the global reserve currency.
This sentiment is further supported by the anticipation of pivotal US data, including:
ISM Manufacturing PMI (November): Expected to signal the health of the manufacturing sector.
Construction Spending (October): A key indicator of economic activity. The USD Index has climbed above 106.00, reversing last week’s 1.5% loss, while US stock futures signal cautious optimism, keeping risk sentiment in check.
Major Currency Pair Performance
EUR/USD:
After posting weekly gains and closing above 1.0500 on Friday, EUR/USD has retreated below 1.0550 in early European trade. Traders are eyeing the Eurozone's Sentix Investor Confidence and Unemployment Rate reports, as well as US PMI data, for further directional cues.
GBP/USD:
The pair slipped to 1.2700 after a strong weekly performance. Despite a better-than-expected rise in UK Nationwide Housing Prices (+1.2% MoM in November), the Sterling remains under pressure, reflecting broader USD strength.
USD/JPY:
After a sharp 3% weekly decline, USD/JPY rebounds toward 150.50, gaining nearly 0.5%. Rising US Treasury yields and diminished risk-off sentiment contribute to the pair’s recovery.
AUD/USD:
Australian Retail Sales grew by 0.6% in October, exceeding expectations, but the data had little impact on AUD/USD, which remains range-bound above 0.6500. The pair awaits further catalysts from global risk sentiment and commodity price trends.
Commodities Under Pressure
Gold (XAU/USD):
Gold is struggling to maintain its recent recovery, sliding below $2,630 as the USD strengthens. Investors are wary of a potential pause in the Federal Reserve's rate-cut cycle, limiting Gold's safe-haven appeal. Key support lies near $2,600, with resistance at $2,650.
USD Rebound Supported by Hawkish Sentiment
The US Dollar has regained its footing after a challenging November, driven by expectations that President-elect Donald Trump's policies will prioritize US economic dominance. His threat of imposing 100% tariffs on BRICS nations looking to replace the USD in international trade reinforces investor confidence in the Greenback’s role as the global reserve currency.
This sentiment is further supported by the anticipation of pivotal US data, including:
ISM Manufacturing PMI (November): Expected to signal the health of the manufacturing sector.
Construction Spending (October): A key indicator of economic activity. The USD Index has climbed above 106.00, reversing last week’s 1.5% loss, while US stock futures signal cautious optimism, keeping risk sentiment in check.
Major Currency Pair Performance
EUR/USD:
After posting weekly gains and closing above 1.0500 on Friday, EUR/USD has retreated below 1.0550 in early European trade. Traders are eyeing the Eurozone's Sentix Investor Confidence and Unemployment Rate reports, as well as US PMI data, for further directional cues.
GBP/USD:
The pair slipped to 1.2700 after a strong weekly performance. Despite a better-than-expected rise in UK Nationwide Housing Prices (+1.2% MoM in November), the Sterling remains under pressure, reflecting broader USD strength.
USD/JPY:
After a sharp 3% weekly decline, USD/JPY rebounds toward 150.50, gaining nearly 0.5%. Rising US Treasury yields and diminished risk-off sentiment contribute to the pair’s recovery.
AUD/USD:
Australian Retail Sales grew by 0.6% in October, exceeding expectations, but the data had little impact on AUD/USD, which remains range-bound above 0.6500. The pair awaits further catalysts from global risk sentiment and commodity price trends.
Commodities Under Pressure
Gold (XAU/USD):
Gold is struggling to maintain its recent recovery, sliding below $2,630 as the USD strengthens. Investors are wary of a potential pause in the Federal Reserve's rate-cut cycle, limiting Gold's safe-haven appeal. Key support lies near $2,600, with resistance at $2,650.