Market Drivers – US Session 22/12/2022

Mohamed Abdelhamid 23 December, 2022 3:09 am Forex Market, Market Update

The US dollar maintained shiny performance on Thursday on the expense of gold which blunged to $1,789 per ounce. Yet, the dollar is still trading within familiar levels against most of its major rival currencies.

Economic Data

The US Department of Labour’s data indicated that 216,000 initial jobless claims were filed in the week ending December 17, versus previous week’s print of 214,000 (revised from 211,000). US Dollar Index inched higher after the report.

The dollar currently stands closer to weekly highs, on the back of positive GDP reading for Q3 in the United States, which was upwardly revised from 2.9% to 3.2%.

UK economic progress shrank at a faster-than-anticipated pace, with the Q3 GDP down by 0.3%. The news fueling speculation the UK’s recession will likely last throughout the next year.

Key Developments

Positive headlines came from China, as the local government announced they would ease travel quarantine restrictions for foreigners starting next month.

The US Senate approved a $1.7 trillion government funding bill and passed it to the House, where it is expected to also pass before the end of the day.

EUR/USD flirted with the weekly high but retreated from the 1.0650 price zone, and settled at 1.0580. GBP/USD, on the other hand, bounced modestly from 1.1991, a fresh three-week low.

The AUD/USD pair reached a fresh weekly high of 0.6766 but ended the day in the red, down 100 pips. The USD/CAD advanced and currently stands at 1.3650. Easing crude oil prices weighed on the CAD. WTI ended the day in the red at $77.90 a barrel.

Asian stock markets closed in the green, but European indexes ended the day with modest losses. Wall Street posted substantial losses, trimming all of its weekly gains.

Also Read