Here is what you need to know on Wednesday, December 11:
The US Dollar (USD) stays resilient against its major rivals early Wednesday, with the USD Index holding comfortably above 106.00. The US Bureau of Labor Statistics will publish the Consumer Price Index (CPI) data for November. Additionally, the Bank of Canada (BoC) will announce monetary policy decisions following the last meeting of the year.
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
---|---|---|---|---|---|---|---|---|
USD |
| 0.55% | -0.07% | 1.08% | 0.16% | 0.53% | 1.07% | 0.64% |
EUR | -0.55% |
| -0.61% | 0.64% | -0.31% | 0.06% | 0.61% | 0.16% |
GBP | 0.07% | 0.61% |
| 1.08% | 0.30% | 0.67% | 1.23% | 0.77% |
JPY | -1.08% | -0.64% | -1.08% |
| -0.94% | -0.46% | -0.13% | -0.37% |
CAD | -0.16% | 0.31% | -0.30% | 0.94% |
| 0.41% | 0.92% | 0.46% |
AUD | -0.53% | -0.06% | -0.67% | 0.46% | -0.41% |
| 0.55% | 0.10% |
NZD | -1.07% | -0.61% | -1.23% | 0.13% | -0.92% | -0.55% |
| -0.46% |
CHF | -0.64% | -0.16% | -0.77% | 0.37% | -0.46% | -0.10% | 0.46% |
|
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The cautious market mood helped the USD find demand during the American trading hours on Tuesday. Moreover, the benchmark 10-year US Treasury bond yield recovered above 4.2%, further supporting the currency. On a yearly basis, the CPI is forecast to rise 2.7% in November following the 2.6% increase recorded in October. The core CPI, which excludes volatile food and energy prices, is expected to rise 0.3% on a monthly basis. Ahead of this key CPI report, US stock index futures marginally higher on the day.
USD/CAD edged higher on Tuesday and touched its strongest level since April 2020 near 1.4200. The pair stays in a consolidation phase above 1.4150 in the European morning on Wednesday. The BoC is expected to lower the policy by 50 basis points to 3.25%. BoC Governor Tiff Macklem will deliver the policy statement and respond to questions in a press conference starting at 15:30 GMT.
EUR/USD closed marginally lower on Tuesday and continued to stretch lower early Wednesday. Nevertheless, the pair manages to hold above 1.0500 to begin the European session.
GBP/USD failed to gather bullish momentum and registered small gains on Tuesday. The pair stays relatively quiet at around 1.2750 in the European morning.
The data from Japan showed on Wednesday that the Producer Price Index rose 3.7% on a yearly basis in November, coming in above the market expectation of 3.4%. After closing in the green on Monday and Tuesday, USD/JPY edges lower and trades near 151.50 on Wednesday.
Gold preserved its bullish momentum following Monday's rally and registered strong gains on Tuesday. After testing $2,700 in the Asian session on Wednesday, XAU/USD corrected lower and was last seen trading at around $2,690.