USD Slowly Grinding Higher Ahead of the Big Events

This week we have some major economic events coming up, starting with the US CPI (Consumer Price Index) inflation report for November, which will be released tomorrow, followed by retail sales and three central bank meetings. The FOMC meeting comes first on Wednesday evening, followed by the Bank of England and the European Central Bank meetings on Thursday.

The US employment reports were mixed last week, with the last labour numbers being released today while the FED can lean both ways in this meeting. So, traders are uncertain at the moment and are staying on the sidelines, hence it has been a quiet day. The JPY has been the only mover today and sank further in the European session, with the BOJ not intending to make any changes later this month.

This disappointed JPY buyers who ran with Ueda’s hawkish comments last week. USD/JPY rose around 100 pips higher to 146.45 and is presently trading at that level, up around 1% so far, with the pressure to the upside. The economic calendar is light today. But we have the auction of US Treasury 3-year and 10-year notes. Those will enter a market that is still concerned about supply and looking for a comfortable level of yields. GHold on the other hand has been bearish all day, falling below $2,000 early this morning and now testing the $1,980 level.

Employment Data from The Conference Board

The rest of the major currencies witnessed slow price action throughout the day, with the USD remaining slightly bullish, as it crept higher against the Euro and the GBP as well. This comes amid a more cautious mood, with equities displaying little desire or interest. Meanwhile, bond yields are marginally higher but remain in a bind following the decrease since late October.

• November employment trend 113.05 points vs 113.67 expected
• October employment trend was 114.16 points

USD/JPY Live Chart