As the forex market opens on Tuesday, December 10, investors are gearing up for a pivotal day, with key economic indicators and central bank meetings on the horizon.
The US Dollar Index (DXY) has risen for the second consecutive day, surpassing the 106.00 mark, driven by a modest increase in US Treasury yields. Today’s economic calendar features the NFIB Business Optimism Index, Unit Labor Costs, and the American Petroleum Institute’s weekly report on crude oil inventories, all of which could influence market sentiment.
In Europe, the EUR/USD pair continued its retreat following an unsuccessful attempt to break the 1.0600 level. The focus will shift to Germany’s final Inflation Rate, which is expected to provide insights into the region’s economic health.
Meanwhile, GBP/USD remains steady but struggles to maintain momentum just below the critical 1.2800 threshold. Notably, there are no significant data releases from the UK today.
The USD/JPY pair has surged to multi-day highs above 151.00, reflecting the dollar’s strength and rising US yields.
In Australia, the AUD/USD pair experienced a sharp reversal, challenging the 0.6470 zone after dipping below 0.6400. This movement comes ahead of the Reserve Bank of Australia (RBA) meeting today, where market participants will be keenly watching for any signals regarding future monetary policy. Additionally, the NAB Business Confidence index is set to be released.
On the commodities front, geopolitical tensions have contributed to a notable rise in WTI crude prices, reaching two-day highs near $69.00 per barrel.
Gold prices have also seen an uptick, climbing to two-week highs around $2,680 per troy ounce due to central bank purchases and expectations of a Federal Reserve rate cut. Silver has followed suit, reaching five-week highs above $32.00 per ounce amid hopes for further stimulus from China.
As these developments unfold, traders and investors are encouraged to stay informed and prepared for potential market shifts.
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