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07.12.2023 Market Report


EUR/USD is picking up fresh bids toward 1.0800 in European trading on Thursday. The US Dollar is tracking the USD/JPY decline, despite a dour mood and rebounding US Treasury bond yields. Focus is on EU GDP revision and US jobs data. 


The GBP/USD pair extends its downside above the mid-1.2500s during the early Asian trading hours on Thursday. The downtick of the pair is backed by the firmer US Dollar (USD) broadly. In the absence of economic data released from the UK docket later this week, the GBP/USD pair remains at the mercy of USD price dynamics. At press time, the major pair is trading at 1.2560, gaining 0.03% for the day.


USD/JPY is falling hard in European trading on Thursday, hitting a fresh three-month low below 146.00. The Japanese Yen is catching aggressive bids, as BoJ Governor Ueda discussed options for a potential pivot from negative interest rates. A softer risk tone further benefits the safe-haven JPY. 


The AUD/USD pair turns lower for the fourth straight day following an early uptick to the 0.6555-0.6560 area and drops to over a two-week low during the Asian session on Thursday. Spot prices remain depressed near the 0.6530 region and move little in reaction to the mixed Chinese trade data.


The NZD/USD trades with a softer tone as Thursday’s Asian session begins, virtually unchanged up by 0.02% following Wednesday’s upbeat session. Nevertheless, the pair is set to consolidate at around the 0.6130/0.6200 range ahead of the US Nonfarm Payrolls data. At the time of writing, exchanges hands at 0.6138.


The USD/CAD pair trades on a stronger note during the Asian trading hours on Thursday. The rebound of the pair is bolstered by renewed US Dollar (USD) demand and the decline of oil prices. At press time, USD/CAD is trading at 1.3605, down 0.09% on the day.


The USD/CHF shed a little over a tenth of a percent from Wednesday’s peak bids of 0.8760 before a pullback towards the day’s opening prices in the American market session.

Investors are seeing a possible softening of the US’ current rate of job growth after the ADP Employment Change came in below expectations, showing a gain of 103K jobs in November versus the expected 130K. The ADP November Employment Change slipped back from October’s print of 106K (revised down from 113K), reversing investors’ expectations of an increase in new jobs growth.


Oil prices reclaimed some ground on Thursday after tumbling to a six-month low in the previous session but investors remained concerned about sluggish demand and economic slowdowns in the U.S. and China.


Gold price remains confined in a narrow trading band held over the past three days. A softer risk tone and bets for a Fed rate cut in March 2024 continue to lend support. The USD stands tall near a two-week top and caps gains ahead of US NFP on Friday.

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