The highlight of the Asian session will be the release of China's trade data for November. Australia will report Building Permits and trade data for October. Later in the day, the weekly Jobless Claims figures from the US will gather attention, along with comments from Bank of Canada Governor Tiff Macklem after Wednesday’s monetary policy decision.
Here is what you need to know on Thursday, December 7:
The US Dollar Index (DXY) rose for the third consecutive day, despite lower Treasury yields and weak US economic data. The ADP employment report showed an increase in private payrolls by 103,000, below the market consensus of 130,000. More job data is due on Thursday with Jobless Claims ahead of Friday's Nonfarm Payrolls. The US 10-year yield fell to 4.12%, the lowest since September 1.
Data from the Eurozone, including Retail Sales and German Factory Orders, came in below expectations. These figures continue to fuel speculations about a rate cut from the European Central Bank (ECB) as early as the first quarter of next year. The German 10-year yield fell to 2.19%, the lowest since May. This unfavorable context has weighed on the Euro, which dropped to its lowest level in three weeks against the US Dollar.
EUR/USD closed at daily lows around 1.0760 and maintains a bearish bias in the short term. On Thursday, Eurozone will release a new estimate of Q3 GDP and Employment, along with German Industrial Production data.
USD/JPY moved sideways, unable to break the crucial resistance around 147.50. The pair held steady despite the movements in the bond market.
USD/CAD closed near its high around 1.3600 amid mixed market sentiment. The Canadian Dollar was not affected by the Bank of Canada's decision to keep interest rates unchanged and their statement. The central bank is not expected to raise rates again. On Thursday, Toni Gravelle, BoC Deputy Governor, will speak.
Analysts at RBC on BoC:
The option for more tightening was again retained – the governing council “remains prepared to raise the policy rate further if needed.” But the dovish undertone with the rest of the statement suggests that option is not expected to be exercised.
The upcoming release of China's export and import numbers from November will be closely watched as it could have an impact on risk sentiment.
AUD/USD failed to hold gains and finished flat, hovering around 0.6550, slightly above the 20-day Simple Moving Average (SMA). The Australian Dollar was not affected by Austarlia’s lower-than-expected growth figures from Q3. Data due on Thursday includes Building Permits and trade figures from October.
Crude oil tumbled more than 4%, with the WTI barrel falling below $70.00, the lowest since June. Gold rose modestly and closed around $2,025 but bearish pressure persists.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold hovers around all-time highs near $3,250
Gold is holding steady near the $3,250 mark, fuelled by robust safe-haven demand, trade war concerns, and a softer-than-expected US inflation gauge. The US Dollar keeps trading with heavy losses around three-year lows.
EUR/USD retreats towards 1.1300 as Wall Street shrugs off trade war headlines
The EUR/USD pair retreated further from its recent multi-month peak at 1.1473 and trades around the 1.1300 mark. Wall Street manages to advance ahead of the weekly close, despite escalating tensions between Washington and Beijing and mounting fears of a US recession. Profit-taking ahead of the close also weighs on the pair.
GBP/USD trims gains, recedes to the 1.3050 zone
GBP/USD now gives away part of the earlier advance to fresh highs near 1.3150. Meanwhile, the US Dollar remains offered amid escalating China-US trade tensions, recession fears in the US, and softer-than-expected US Producer Price data.
Bitcoin, Ethereum, Dogecoin and Cardano stabilze – Why crypto is in limbo
Bitcoin, Ethereum, Dogecoin and Cardano stabilize on Friday as crypto market capitalization steadies around $2.69 trillion. Crypto traders are recovering from the swing in token prices and the Monday bloodbath.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.