FX Today: Australian, US Jobs Report Take Centre Stage
The US Dollar (USD) experienced a sharp decline on Wednesday as investors processed the Federal Reserve's widely expected rate cut, alongside the updated 'dots plot'.
Here's what to watch on Thursday, December 11:
The US Dollar Index (DXY) reversed its recent gains and plummeted to multi-week lows in the 98.60-98.50 range, following a decline in yields post-FOMC event. The Balance of Trade figures, Initial Jobless Claims, and Wholesale Inventories are all due for release.
EUR/USD strengthened, breaking free from four consecutive daily declines, and returned to the 1.1700 mark. Germany's final Inflation Rate on December 12 will be a key focus.
GBP/USD soared, reaching monthly highs just below the 1.3400 threshold. The RICS House Price Balance and a speech by BoE's Kroszner are on the agenda.
USD/JPY tumbled towards the 155.80 zone, following a post-FOMC pullback in the US Dollar. The BSI Large Manufacturing index and weekly Foreign Bond Investment figures are upcoming events.
AUD/USD climbed to September levels, around 0.6680, in response to the buck's decline. The labour market report in Australia will be a significant release.
WTI prices rebounded from their initial drop, reclaiming the $59.00 per barrel mark, as traders assessed geopolitical developments and the Fed's interest rate decision.
Gold prices hit three-day highs, reaching $4,240 per troy ounce, following the FOMC meeting and a pronounced US Dollar and US Treasury yield pullback. Silver prices continued their upward trend, reaching record highs near $62.00 per ounce.
