Summary:
The US Dollar witnessed mixed outcomes against various rivals in a choppy Friday pre-weekend trade session, influenced by varied economic data. December Non-Farm Payrolls exceeded estimates at 216,000 jobs, surpassing both median expectations of 170,000 and the November figure of 173,000. The Unemployment rate remained steady at 3.7%.
Contrastingly, the US ISM Services PMI Survey for December fell to 50.6 from November’s 52.7, below the expected 52.6. Wages (m/m) held steady at 0.4%. The Dollar Index (USD/DXY) concluded flat at 102.45, having earlier touched an overnight high of 103.10.
Major Currency Pairs:
GBP/USD: Sterling outperformed, rising 0.25% against the US Dollar to 1.2720, propelled by better-than-expected UK Construction PMI and Halifax House Price Index.
USD/JPY: The pair finished little-changed at 144.55 after experiencing choppy trade, reaching an overnight high at 145.98 and a low at 143.81.
EUR/USD: The Euro dipped slightly to 1.0938 from 1.0945, closing lower against the British Pound.
NZD/USD: The New Zealand Kiwi rallied to 0.6245 from 0.6225, benefiting from a 1.2% increase in the Global Dairy Trade Index.
AUD/USD: The Australian Dollar concluded at 0.6710, with volatile trade between an overnight low of 0.6640 and a high of 0.6748.
Global Bond Yields:
Global bond yields saw an increase, with the benchmark US 10-year bond yield up by 6 basis points to 4.05%. The UK 10-year Gilt yield climbed to 3.78%, and Australia’s 10-year bond yield rose to 4.13%.
Upcoming Economic Events:
The week ahead features a light economic calendar, with Japanese markets closed for “Coming of Age” day.
Key releases include Australia’s ANZ Bank December Job Ads, Germany’s November Balance of Trade and Factory Orders, Switzerland’s November Retail Sales and December Inflation Rate, and the Eurozone’s December Economic Sentiment and November Retail Sales.
US Atlanta Fed President Ralph Bostic is scheduled to speak on the 2024 economic outlook.
Conclusion:
As the market reflects on a mixed trading session, major currency pairs show diverse performances while global bond yields experience an upward trend. The upcoming week promises a lighter economic calendar, with traders anticipating key releases and speeches for potential market influences.
