European Central Bank (ECB) President Christine Lagarde said that growth in economic activity should benefit from increased household spending and a resilient labor market, testifying before the Committee on Economic and Monetary Affairs of the European Parliament, in Brussels on Wednesday.
GBP/USD rallies on Wednesday during the North American session, surpassing the 1.3300 figure as market participants price in a more dovish Federal Reserve (Fed), as rumors grow that the White House economic adviser Kevin Hassett could become the next Chair, taking Jerome Powell’s reins.
The Euro (EUR) trades on the front foot against the US Dollar (USD) on Wednesday as the Greenback remains under sustained selling pressure amid dovish Federal Reserve expectations, while traders digest the latest US services sector data.
The Japanese Yen (JPY) is strengthening again, up 0.3% against the US Dollar (USD) as USD/JPY moves back toward Monday’s lows and threatens a broader retracement of its mid-November weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
The Pound Sterling (GBP) is the day’s top G10 performer after Norwegian Krone (NOK), with sentiment-driven buying pushing GBP higher as risk reversals recover to late-August levels, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
The Euro (EUR) is up 0.3% against the US Dollar (USD) and a mid-performer among the G10, climbing to fresh local highs at levels last seen in late October.
The Canadian Dollar (CAD) gained modestly as a weaker US Dollar (USD), firmer risk sentiment, and stronger commodity prices helped lift the currency toward its estimated fair value.
US Treasury Secretary Scott Bessent said on Wednesday that he is advocating that regional Federal Reserve (Fed) bank presidents must have lived in their district for three years, per Reuters.
The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Wednesday as the Greenback remains under broad pressure amid a firmly dovish Federal Reserve (Fed) outlook. At the time of writing, USD/CAD is trading around 1.3950, edging close to one-month lows as bearish momentum builds.
In her introductory statement before the European Parliament’s Committee on Economic and Monetary Affairs (ECON), European Central Bank (ECB) President Christine Lagarde said the Eurozone economy should gain support from improving household spending and a resilient labour market.
The Euro (EUR) trades flat against the Swiss Franc (CHF) on Wednesday as traders digest a fresh batch of Swiss inflation figures alongside Eurozone Purchasing Managers Index (PMI) surveys and Producer Price Index (PPI) data.
Fresh data from the Institute for Supply Management (ISM) showed the Services Purchasing Managers Index (PMI) picking up to 52.6 in November from 52.4, beating expectations of 52.1 and signalling a bit more momentum in the sector.
(This story was corrected on December 3 at 12:40 GMT as its content was written as a preview ahead of the Turkish CPI data for November. The story shouldn't have been released as the content was out after the data release, making it outdated from the moment of its publication.)
AUD/USD rallied to near 0.6600 as Q3 GDP data, though weaker than expected, confirmed strong private investment and household demand, supporting the RBA’s on-hold stance.
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.
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