The EUR is resisting pressure, as inflation pickup adds hopes for ECB changes. Oil trades are mixed on production cuts and increases.
The Dollar slides despite upbeat GDP data, the volatility drops on the low market volume on the eve of Christmas.
The European currency staged a rebound after surrendering to the pressure from Dollar, sending the currency to a 13-years low.
Consumer price inflation (CPI Index) in China accelerated In November for the third month in a row.
The JPY growth gains traction on the upbeat CPI, as Oil prices plunge ahead of the OPEC talks.
The FED head Yellen boosts rate hike expectations, which sends the Dollar to a 14-year high. This crashes the Gold to a 6-month low.
The Japanese currency saw a muted response to the BOJ decision as the Australian Dollar surged on the RBA decision to hold off a rate change.
A lot of movements are happening on the market. The oil retreats ahead of OPEC as the FTSE 100 is near a bearhish mainstay. USD/JPY sustains gains but the Pound frizzels out.
The British currency erased declines quickly as the governor squashed the hopes of those expecting a further stimulus. At the same time, the Oil prices tumbled and AUD rose immensely.
The UK Office for National Statistics reported in September that the CPI rose to 1.0%, which is 0.1% higher than projected.
The bank’s predicaments stoked concerns about the stability of the country’s financial sector with a new wave of shares selloff.
Rising inflation and robust labour market growth are two key components for monetary tightening according to the FED.
The Dollar sees moderate gains as the Pound seems to sink lower on the fresh CPI data.
GfK official Joe Staton explained the upbeat change with UK consumers accommodating to a new reality outside of EU, although seeing no adverse changes after Brexit as official disintegration process has not yet commenced.
The new data soothed the worries about the adverse impact of Brexit on the UKs economy.