The U.S. dollar rose against major currencies on Tuesday following better-than-expected retail sales data that pointed to underlying economic momentum as markets braced for interest rate moves from the Federal Reserve and other central banks. Commerce Department data on Tuesday showed U.S. retail sales beat expectations by rising 0.7% in November, supported by a surge in auto and online purchases. Markets expect the Fed to deliver a 25 basis point rate cut at the conclusion of its two-day policy meeting on Wednesday, with futures implying a nearly 97% chance of a cut, according to the CME...
The Japanese Yen (JPY) struggled to build on the previous day's modest recovery against its US counterpart and attracted fresh sellers during the Asian session on Wednesday. Data released today showed that Japan's Trade Balance unexpectedly improved in November on strong export growth, although a decline in imports indicated weak local demand. This, coupled with an uncertain economic outlook amid concerns about US President-elect Donald Trump's tariff plans, reaffirmed expectations that the Bank of Japan (BOJ) will keep interest rates steady later this week and weakened the JPY. Meanwhile,...
The Australian Dollar (AUD) extended its decline for the second straight session against the US Dollar (USD) on Wednesday (18/12). Traders are bracing for a potential 25 basis point interest rate cut by the US Federal Reserve (Fed) later in the North American session. The AUD is also facing headwinds as traders increase their bets that the Reserve Bank of Australia (RBA) will cut rates sooner and more significantly than previously expected. However, the upcoming decision will be data-driven, with evolving risk assessments guiding the RBA's approach. The US Dollar (USD) remains solid amid...