China’s Inflation Miss and Ramsden’s Speech in Focus
Today, the market opens with attention on China’s inflation data showing weaker-than-expected year-on-year growth at 0.2% versus the forecasted 0.5%. Meanwhile, the GBP remains steady ahead of BoE Deputy Governor Ramsden’s speech, as traders watch for hints on policy direction.
Key Data Out Today
- China Inflation Rate YoY (Nov): 0.2% (previous: 0.3%, forecast: 0.5%)
- BoE’s Ramsden Speech (GBP): 1:00 PM GMT
Energy & Precious Metals
- Crude Oil: Up 1.39% at $68.13 – supported by tightening supply signals.
- Brent Oil: Gained 1.23% at $71.99 – steadying on demand recovery hopes.
- Gold: Rose 0.59% at $2648.85 – safe-haven demand supporting gains.
- Silver: Climbed 1.16% to $31.30 – industrial demand adds strength.
Currency Movements
EUR/USD
- EUR/USD: The euro is trading at approximately 1.0565 against the U.S. dollar, showing a slight decrease of 0.03% from the previous day. This movement reflects ongoing market adjustments following recent U.S. economic data releases.
GBP/USD
- GBP/USD: The British pound stands at around 1.2762, up by 0.17%. This uptick is attributed to positive market sentiment and expectations surrounding the Bank of England’s upcoming policy decisions.
AUD/USD
- AUD/USD: The Australian dollar is trading near 0.6432, gaining 0.65%. This increase comes before the Reserve Bank of Australia’s meeting. A significant rate cut is anticipated. This could potentially impact the currency’s value.
NZD/USD
- NZD/USD: The New Zealand dollar is at approximately 0.5847, up by 0.28%. Market participants are closely monitoring the Reserve Bank of New Zealand’s policy stance amid global economic shifts.
USD/JPY
- USD/JPY: The U.S. dollar is trading at about 150.44 yen, rising 0.31%. The yen’s depreciation has renewed interest in carry trades, where investors borrow in lower-yielding currencies to invest in higher-yielding assets.
USD/CNY
- USD/CNY: The dollar stands at 7.2832 Chinese yuan, with a marginal increase of 0.01%. China’s Central Economic Work Conference this week is expected to provide insights into the country’s economic policies. These insights could influence the yuan’s trajectory.
USD/CHF
- USD/CHF: The dollar is trading at 0.8797 Swiss francs, up by 0.10%. The Swiss National Bank’s anticipated rate cut could further impact this pair’s dynamics.
USD/CAD
- USD/CAD: The U.S. dollar is at approximately 1.4156 Canadian dollars, showing a slight decrease of 0.02%. The Canadian dollar remains under scrutiny ahead of the Bank of Canada’s meeting, where a significant rate cut is expected.
USD/MXN
- USD/MXN: The dollar stands at 20.1475 Mexican pesos, down by 0.22%. Market participants are observing U.S. Treasury yields and political developments, which could influence this pair.
USD/INR
Things to Keep a Watch On:
- BoE Ramsden’s Speech (1:00 PM GMT): Key remarks on the UK’s economic policy could influence GBP/USD.
- Energy Prices: Crude oil and natural gas continue to move sharply, with demand dynamics in focus.
- Precious Metals: Gold and silver showing resilience; any further dollar weakness could push these higher.
- Currency Movements: Watch the dollar’s strength against major peers, especially EUR, GBP, and JPY, amid today’s quiet data flow.