Here is what you need to know on Tuesday, December 12:
The US Dollar struggles to find demand early Tuesday as markets await the Consumer Price Index (CPI) data for November. The US Dollar Index stays in negative territory below 104.00 after posting small gains on Monday. The European economic docket will feature ZEW business sentiment survey for Germany and the Eurozone.
The high-yield of the latest 10-year US Treasury note auction that took place late Monday stood at 4.29%, down sharply from 4.51% in the previous auction. The 10-year US T-bond yield fell on this development and closed the day in the red, causing the USD to lose strength against its major rivals. Early Tuesday, the 10-year US yield is down nearly 1% on the day at around 4.2% and US stock index futures trade little changed. Meanwhile, the US Central Command reported that a merchant vessel in the Red Sea was struck by a land-based missile fired by Houthi rebels, causing investors to adopt a cautious stance.
US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.12% | -0.17% | -0.23% | -0.22% | 0.25% | -0.53% | -0.42% | |
| EUR | 0.11% | -0.06% | -0.11% | -0.11% | 0.36% | -0.42% | -0.30% | |
| GBP | 0.18% | 0.06% | -0.05% | -0.06% | 0.43% | -0.35% | -0.25% | |
| CAD | 0.23% | 0.11% | 0.04% | -0.01% | 0.48% | -0.30% | -0.20% | |
| AUD | 0.22% | 0.10% | 0.05% | 0.01% | 0.47% | -0.30% | -0.19% | |
| JPY | -0.25% | -0.38% | -0.53% | -0.48% | -0.49% | -0.82% | -0.68% | |
| NZD | 0.53% | 0.41% | 0.34% | 0.30% | 0.29% | 0.78% | 0.11% | |
| CHF | 0.42% | 0.30% | 0.24% | 0.20% | 0.19% | 0.68% | -0.10% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), if forecast to edge lower to 3.1% on a yearly basis in November from 3.2% in October. The Core CPI, which excludes volatile food and energy prices, is expected to rise 4% in the same period to match the previous increase.
US CPI Preview: November inflation data looks set to guide Fed last meeting of the year.
The data from Australia showed earlier in the day that the National Australia Bank's Business Confidence Index dropped to -9 in November from -3 (revised from -2) in September. The Business Conditions Index edged lower to 9 from 13. Reserve Bank of Australia (RBA) Governor Michele Bullock said on Tuesday that policymakers are taking a cautious approach with monetary policy and reiterated that they will continue to watch incoming data. AUD/USD gained traction in the Asian session and the pair was last seen testing 0.6600, rising 0.5% on a daily basis.
The UK's Office for National Statistics report on Tuesday that the Employment Change in October was +50K. The ILO Unemployment Rate held steady at 4.2% in the three months to October while annual wage inflation, as presented by the change in the Average Earnings Including Bonus, dropped sharply to 7.2% from 8% in the same period. GBP/USD declined toward 1.2550 with the immediate reaction but managed to hold above that level.
EUR/USD closed the first trading day of the week virtually unchanged and started to edge higher toward 1.0800 early Tuesday.
The renewed USD weakness and the risk-averse market environment caused USD/JPY to turn south early Tuesday. At the time of press, the pair was down more than 0.5% on the day below 145.50.
Gold turned south and declined below $1,980 for the first time in nearly three weeks on Monday. Retreating US yields helped XAU/USD find a foothold and the pair was last seen inching higher toward $1,990.
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
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
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.