Dollar regains momentum, awaits US PCE data to drive direction

December 5 The U.S. dollar (USD) struggled to attract buyers early on Friday after remaining resilient against rivals on Thursday. In the second half of the day, the U.S. Bureau of Economic Analysis (BEA) will release September data on the personal consumption expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation. Later in the U.S. session, investors will keep a close eye on the University of Michigan's (UoM) Consumer Confidence Index report for December.

Upbeat data released by the United States helped the dollar stabilize its momentum on Thursday. Challenger, Gray & Christmas reported that planned job losses fell 53% from October to 71,321 in November. In addition, the U.S. Labor Department's weekly report showed that initial jobless claims fell to 191,000 from 218,000 last week. This number was higher than market expectations of 220,000. Nonetheless, the CME Group's FedWatch tool shows that the probability of a 25 basis point interest rate cut by the Federal Reserve in December remains at about 90%, causing the dollar's recovery to remain shallow. The U.S. dollar index was at a disadvantage in early European trading on Friday, falling below 99.00.

Basic trends in the foreign exchange market:

The U.S. dollar closed slightly higher against the Canadian dollar on Thursday, but fell back to around 1.3950 early on Friday. Later in the session, Statistics Canada will release employment data for November. Investors expect the unemployment rate to edge up to 7% from 6.9% in October.

Japanese Finance Minister Katayama Satsuki said on Friday that interest rates are affected by "a variety of factors" and reiterated that the government will pay close attention to market dynamics and implement appropriate debt management policies.and develop budgets with fiscal sustainability in mind. After closing slightly on Thursday, USD/JPY continued to fall on Friday, last falling at 154.65 for the day.

The euro fell about 0.25% against the dollar on Thursday, ending an eight-day winning streak. The pair regained traction in early European trade, trading above 1.1650. Eurostat will publish revisions to third-quarter employment change and gross domestic product data later in the session.

Following Wednesday's sharp gains, GBP/USD declined on Thursday, closing slightly lower. In early European trading on Friday, the pair was holding around 1.3350.

www.xmasseuse.commodity market fundamentals:

Gold maintained modest intraday gains in the first half of Friday's European trading day, remaining confined to weekly ranges despite a lack of bullish confidence. The U.S. dollar (USD) struggled to capitalize on the previous day's rebound from its lowest since late October, attracting a fresh batch of sellers on dovish expectations from the Federal Reserve. This in turn is seen as a key factor in driving flow towards the non-yielding yellow metal. It is currently trading above $4,200.

Analysis of major currency trends:

Euro: The intraday bias of EUR/USD remains slightly upward. The decline that started at 1.1917 was supposed to be www.xmasseuse.completed at 1.1467. Further gains towards the 1.1727 resistance should first be seen. A strong breakout here will bring about a retest of the 1.1917 high. However, a break below the minor support at 1.1590 would affect the outlook, reviving the neutral bias.

British Pound: The intraday bias of GBP/USD is still rising, and it is expected that the rise from 1.3008 should first extend to the 1.3470 resistance level. A decisive breakout here would pave the way for a retest of the 1.3725/3787 resistance zone. On the downside, resistance turning into support below 1.3274 will first turn the intraday bias from neutral to neutral. But as long as the 1.3718 support level holds, risks will continue to rise to prevent a pullback.

Japanese Yen: USD/JPY started from falling from 157.88, breaking through the temporary low of 154.65, and the intraday bias was downward again. Continued trading below channel support will bring about a deeper correction towards 55DEMA (currently 153.11). A strong breakout here would lead to further declines towards the 150.90 cluster (38.2% retracement, 139.87 to 157.88, 151.00). At present, as long as the 156.17 resistance level holds, risks will continue to decline to prevent a rebound.

The above content isThe entire content of "[XM Forex]: US dollar regains momentum, awaiting US PCE data to drive direction" was carefully www.xmasseuse.compiled and edited by the editor of XM Forex. I hope it will be helpful to your trading! Thanks for the support!

Every successful person has a beginning. Only by having the courage to start can you find the way to success. Read the next article now!