As the new week commences, major currency pairs are exhibiting limited movement due to thin trading volumes ahead of the year-end. The focus of the US economic calendar includes Pending Home Sales for November and the Chicago Purchasing Managers Index for December, which are expected to be the primary data points of interest.
The US Dollar Index finished the previous week with a slight uptick, currently hovering around the 108.00 mark. At the same time, US stock index futures show a bearish trend, reflecting a decline in the main stock indices on Wall Street from last Friday, signaling a cautious market sentiment as the year draws to a close.
Over the past week, the US Dollar has demonstrated strength against several major currencies, most notably against the Swiss Franc. The recent performance of the Dollar indicates a robust position as it navigates the current economic landscape.
The People’s Bank of China’s governor highlighted that the average deposit reserve ratio for Chinese banks stands at approximately 6.6%. He noted that this figure still allows for monetary policy adjustments compared to other major economies, which may influence market dynamics in the region. In currency movements, the AUD/USD pair edged upwards slightly, trading just under 0.6250 during early European trading hours.
The EUR/USD pair remained stable, holding above the 1.0400 level without registering significant shifts in either direction. Meanwhile, GBP/USD has shown minor fluctuations, trading just below 1.2600 after a slight increase on Friday.
gold prices concluded the previous week almost unchanged, despite witnessing a rise of over 0.5% on Thursday. The XAU/USD pair continues to struggle for upward momentum early on, yet maintains a solid position above $2,600. Additionally, USD/JPY continues its upward trend, marking weekly gains for the fourth consecutive time, and remains steady around 158.00 in early European trading.
