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FOREX: US Dollar Loses Ground as Jobless Claims Rise, Equities Gain

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  • Major equity benchmarks have consolidated solid gains this week, keeping the greenback on the backfoot Thursday. The USD index is down 0.42% on the session, with the weakness extending after the release of higher-than-expected weekly jobless claims in the US. The poorer data adds a moderately negative tilt leading into tomorrow’s key US employment report.
  • The Euro and Swiss Franc lead gains in G10, slightly outpacing the DXY adjustment. EURUSD has remained unfazed by political developments in France, and following the US figures, the pair rose to a high of 1.0590 before reversing 30 pips lower ahead of the APAC crossover.
  • EURJPY price action was most notable over the course of Thursday trade, with the higher front-end yields in the US also weighing on the Yen. EURJPY rose to a session high of 159.39, almost 200 pips off the lows. Expectations for the December BOJ meeting continue to stoke JPY volatility, with the market split between whether the bank will hike on December 19.
  • Elsewhere, GBPUSD has established itself back above 1.2700 and trades closer to 1.2750 in late trade. Recent gains are considered corrective, and the move higher is allowing an oversold trend condition to unwind. Initial firm resistance at 1.2716, the 20-day EMA, has been pierced. A clear break of the average would signal scope for a stronger recovery and expose the 50-day EMA, at 1.2843.
  • Friday’s release of the US employment report will be the data highlight of the week, a key input for the Fed ahead of its final decision of 2024. Non-farm payrolls is expected to bounce sharply to 215k in November in a reversal of October’s strike and weather-related weakness.
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  • Major equity benchmarks have consolidated solid gains this week, keeping the greenback on the backfoot Thursday. The USD index is down 0.42% on the session, with the weakness extending after the release of higher-than-expected weekly jobless claims in the US. The poorer data adds a moderately negative tilt leading into tomorrow’s key US employment report.
  • The Euro and Swiss Franc lead gains in G10, slightly outpacing the DXY adjustment. EURUSD has remained unfazed by political developments in France, and following the US figures, the pair rose to a high of 1.0590 before reversing 30 pips lower ahead of the APAC crossover.
  • EURJPY price action was most notable over the course of Thursday trade, with the higher front-end yields in the US also weighing on the Yen. EURJPY rose to a session high of 159.39, almost 200 pips off the lows. Expectations for the December BOJ meeting continue to stoke JPY volatility, with the market split between whether the bank will hike on December 19.
  • Elsewhere, GBPUSD has established itself back above 1.2700 and trades closer to 1.2750 in late trade. Recent gains are considered corrective, and the move higher is allowing an oversold trend condition to unwind. Initial firm resistance at 1.2716, the 20-day EMA, has been pierced. A clear break of the average would signal scope for a stronger recovery and expose the 50-day EMA, at 1.2843.
  • Friday’s release of the US employment report will be the data highlight of the week, a key input for the Fed ahead of its final decision of 2024. Non-farm payrolls is expected to bounce sharply to 215k in November in a reversal of October’s strike and weather-related weakness.