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The US Dollar advanced throughout the first half of the day but ended it mixed as Wall Street managed to revert pre-opening losses and posted a modest advance. At the same time, US government bond yields advanced. Investors are unwilling to risk much ahead of the release of US inflation data next Thursday.
Economic Data
Tuesday witnessed a light economic calendar as investors await some clarity on the part of major central banks worldwide.
The World Bank sharply cut the global economy’s growth forecast for 2023 as a result of the prevalent persistently high inflation and on the back of accelerating worldwide recession-linked concerns.
The World Bank forecasts U.S. gross domestic product will increase 0.5% from the prior year and expects global growth to slow to 1.7% in 2023, down from an estimate of 3% growth in June.
Key Developments
The European Central Bank’s governing council member Mario Centeno said on Tuesday the current process of interest rate increases is approaching its end.The ECB’s policymaker added “even though inflation may have some resistance in January and February it will resume falling in March.”EUR/USD pair is trading at 1.0741 at the …
US Fed Chief Jerome Powell and his counterparts from Canada and Japan appeared in news headlines, although as part of a symposium on central bank independence, giving no signals on monetary policies.
The EUR/USD pair hovers around 1.0740, while GBP/USD stands at 1.2160, down on the day. Commodity-linked currencies also eased against the greenback, with AUD/USD trading around 0.6890 and USD/CAD in the 1.3420 price zone. Finally, the USD/JPY pair trades marginally higher at around 132.20.
Gold consolidates at around $1,876 a troy ounce, while crude oil ticked higher in the American afternoon. WTI settled at $75.20 a barrel.
The upcoming Asian session will be interesting regarding macroeconomic data, as Australia will publish the November Monthly Consumer Price Index, which is foreseen at 7.3% YoY, up from the previous 6.9%. Also, Australia will unveil November Retail Sales, expected to have increased by 0.6% after falling 0.2% in the previous month. Finally, it is worth adding that China will publish the December Consumer Price Index (CPI) and the Producer Price Index (PPI) for the same month.
Also Read
US stocks surge after Powell’s speech
Gold Cautiously Moves Higher Ahead Of US CPI Data
Canada’s dollar weakens ahead of US inflation data
ECB’s Centeno: End of interest rate rise process is approaching
Crude oil rises for fourth session in a row
Fed’s Bowman: More rate rises needed to combat high inflation
EUR/GBP expected to edge higher over coming months
