Here’s what you need to know on Wednesday, December 10th.
Markets are feeling a bit anxious as they await an important monetary policy announcement from the US Federal Reserve later today, during the North American trading session.
The U.S. dollar has taken a breather in its recent upswing against six major currencies, as traders are opting for a cautious approach, waiting for the Fed’s decision before making any significant moves.
USD price today
The following table illustrates the percentage changes of the US dollar against other significant currencies today. Notably, the dollar has shown the weakest performance against the Australian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.07% | -0.09% | -0.00% | -0.11% | 0.02% | -0.01% | |
| EUR | 0.05% | 0.00% | -0.05% | 0.06% | -0.06% | 0.08% | 0.04% | |
| GBP | 0.07% | -0.00% | -0.04% | 0.06% | -0.05% | 0.09% | 0.05% | |
| JPY | 0.09% | 0.05% | 0.04% | 0.10% | -0.01% | 0.11% | 0.09% | |
| CAD | 0.00% | -0.06% | -0.06% | -0.10% | -0.11% | 0.01% | -0.01% | |
| AUD | 0.11% | 0.06% | 0.05% | 0.01% | 0.11% | 0.13% | 0.10% | |
| NZD | -0.02% | -0.08% | -0.09% | -0.11% | -0.01% | -0.13% | -0.04% | |
| CHF | 0.01% | -0.04% | -0.05% | -0.09% | 0.00% | -0.10% | 0.04% |
The heat map displays percentage changes between major currencies. The base currency is in the left column, and the quote currency is at the top. For example, selecting USD from the left and moving horizontally to JPY indicates the percentage change represented in the box.
The Fed is largely anticipated to lower interest rates by 25 basis points, bringing them to a range of 3.5% to 3.75% following its December meeting. However, insights from the dot plot chart, the voting splits within the Federal Open Market Committee, and remarks from Chairman Jerome Powell will be crucial for understanding the potential interest rate trajectory in 2026.
There’s a sense that a hawkish tone might emerge from the Fed, as ongoing inflation worries could overshadow recent indications of a slowing labor market.
Alongside this, President Trump’s agenda includes starting his final round of interviews today, beginning with an audience with former Federal Reserve Director Kevin Warsh.
Kevin Hassett, an economic advisor at the White House and Trump’s preferred choice for the next Fed chair, mentioned there is “plenty of room” for more rate cuts, although this could shift if inflation climbs.
In terms of economic data, the Labor Department’s Bureau of Labor Statistics reported that job openings increased by 12,000 to 7.67 million at the end of October.
According to recent data from Automatic Data Processing, private companies in the U.S. added about 4,750 jobs each week over the four-week period ending November 22.
Shifting to Asia, China’s National Bureau of Statistics announced a 0.7% annual rise in the consumer price index, aligning with market expectations. However, a 0.1% dip in the monthly CPI hints at persistent deflationary pressures.
After a significant decline in earlier European trading tied to inflation data from China, AUD/USD has made a recovery, now hovering around 0.6650 as the dollar stays generally weak.
The Japanese yen saw the most movement in Asia, initially dropping to around 157.00 against the US dollar, but then bouncing back on expectations of contrasting monetary policies between the Fed and the Bank of Japan, coupled with comments from Prime Minister Sanae Takaichi about appropriate actions against “excessive and chaotic movement.” At present, USD/JPY is around 156.75.
After lowering the benchmark interest rate to a three-year low of 2.25% in October, the US dollar versus Canadian dollar pair trades within a limited range near 1.3850, awaiting effective policy actions from the Bank of Canada.
Expectations for euro/usd suggest subdued trading activity below 1.1650 to start the European session. European Central Bank President Christine Lagarde is set to engage in a moderated discussion regarding the euro and the dollar’s future at the Financial Times Global Board meeting in London at 10:55 GMT.
GBP/USD has bounced back to the 1.3300 mark, yet there’s a noticeable lack of sustained buying interest. Bank of England Governor Andrew Bailey is also partaking in a pre-recorded chat about financial stability during the Financial Times Global Boardroom Conference in London.
As for gold, it remains in a cautious position, but it has risen above $4,200 early Wednesday. Silver, on the other hand, has reached a new record high, soaring past $61.
