With a December Fed rate cut almost fully priced, market attention is shifting to the outlook for 2026, as expectations of a more dovish Fed could weigh on the dollar in the months ahead.
Gold (XAU/USD) firms as traders react to the latest US economic releases. At the time of writing, XAU/USD is trading around $4,225, edging modestly higher after briefly slipping below the $4,200 psychological level earlier in the day.
The US Dollar (USD) sold off in Asia as news emerged that interviews for the Fed chair position had been cancelled, ING's FX analyst Chris Turner notes.
Private employers shed 32,000 jobs in November, the Automatic Data Processing (ADP) reported on Wednesday. This reading followed the 47,000 increase (revised from 42,000) recorded in October and came in below the market expectation of 5,000 growth. During the period, the annual pay was up 4.4%.
European Central Bank (ECB) executive board member and Chief Economist Philip Lane said during the European trading session that monetary policy adjustments are required only if there is a large and persistent deviation in economic data.
Central banks added a net 53 tonnes of Gold to reserves in October, marking the strongest monthly increase since November 2024, with Poland and Brazil leading the charge.
Silver continues its rally, approaching the upper band of a multi-month ascending channel near $59.60/59.90, after breaking out of a brief consolidation, Société Générale's FX analysts note.
November PMIs point to further weakening of growth momentum. Both manufacturing PMIs in contraction territory, divergence narrows. Services and composite PMIs also came down. More targeted support expected to safeguard GDP growth in 2026, ABN AMRO's Senior Economist Arjen van Dijkhuizen reports.
Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $58.05 per troy ounce, down 0.89% from the $58.57 it cost on Tuesday.
USD/JPY traded subdued at 155.70 as markets await the December BoJ rate hike, with momentum mildly bearish and RSI slipping, OCBC's FX analysts Frances Cheung and Christopher Wong note.
AUD/USD bounced off the August lows at 0.6410 and reclaimed its 200-day moving average, signaling short-term bullish potential, Société Générale's FX analysts note, Société Générale's FX analysts note.
A report from Reuters has stated that Chinese officials have provided suggestions on how a 5% Gross Domestic Product (GDP) growth rate can be achieved in 2026 too.
US Dollar (USD) traded subdued overnight, in absence of fresh catalyst while most major central bank decisions are largely priced. The Dollar Index (DXY) last seen at 99.19 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
USD/CNH continues to edge lower, a trend that began even before broader US Dollar (USD) weakness, as exporter flows and possible portfolio inflows support the renminbi, ING's FX analyst Chris Turner notes.
European natural Gas prices extended their decline, with TTF falling to its lowest level since April as unseasonably mild weather curbs demand, ING's commodity experts Ewa Manthey and Warren Patterson note.
The Australian Dollar (AUD) briefly fell after a softer-than-expected GDP print, but strong private demand and resilient consumption helped the currency reverse losses.
Australia’s economy remains robust, despite a moderation in Q3 growth (0.4% q/q SA). Standard Chartered's economists' baseline remains for the RBA to maintain the cash rate at 3.60% at its 9 December meeting.
Oil prices traded lower yesterday, with ICE Brent hitting its lowest level since late October, ING's commodity experts Ewa Manthey and Warren Patterson note.
Official manufacturing PMI improved modestly to 49.2 in November, indicating still-soft momentum. Production activity likely stayed steady, while investment may have contracted further. Base effect likely boosted retail sales growth; trade growth may have improved on easing trade uncertainty.
EUR/USD advanced in Asia as sharply lower USD hedging costs for eurozone investors—now down to 1.85% from 2.40%—boosted demand for the single currency alongside improved terms of trade.
The GBP/JPY cross trades with a positive bias for the second straight day on Wednesday and climbs back above the 206.00 mark during the early part of the European session.
The NZD/USD pair attracts some buyers to around 0.5750 during the early European session on Wednesday. The upbeat Chinese economic data provides some support to the China-proxy Kiwi against the US Dollar (USD).
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