FX Today: Reserved hope before US job reports

What you need to know on Wednesday, January 7th:

The US dollar (USD) fluctuated between gains and losses, staying within its usual range in the currency markets. The US dollar index (DXY) saw a slight increase, staying close to 98.50, as market participants kept a positive outlook until Tuesday, with many global indexes on the rise.

The interest in speculation seems to have brushed aside geopolitical anxieties surrounding US military actions in Venezuela. Former President Nicolas Maduro and his wife, Cilia Flores, appeared in court and pleaded not guilty regarding these actions. Maduro claimed he remains the president of Venezuela, framing himself as a prisoner of war.

Oil prices were stable, with West Texas Intermediate (WTI) crude oil staying a few cents shy of $58.00 per barrel.

Gold prices continued to show strength, trading around $4,480 as the US market closed.

According to new research from the Hamburg Commercial Bank, the EUR/USD pair broke through the 1.1700 mark, creeping around that level in December, despite the regional economy’s continued growth.

Earlier in the day, GBP/USD surged towards a multi-week high of 1.3570 but later pulled back, hovering around 1.3500. The UK’s HCOB composite PMI registered at 51.4, down from 52.1 previously.

As for the USD/JPY pair, it’s trading near 156.70 at the start of the Asian session, while USD/CAD stands close to 1.3800. The Australian dollar appreciated against the US dollar, with AUD/USD firmly above 0.6700.

Looking ahead, Australia will be releasing its Consumer Price Index (CPI) at the next Asian meeting. The country’s inflation rate, as measured by CPI, is projected to rise to 3.7% year-on-year in November, following 3.8% in October.

Later in the day, Germany is set to publish its November retail sales data, and the US will unveil its December ADP employment change report along with November’s JOLTS job statistics.

Economic Indicators

ADP Employment Change

ADP Employment Change is a measure of private sector employment published by Automatic Data Processing, the largest payroll processing company in the US. This statistic tracks changes in private payrolls in the country. Generally, a rise in this number positively influences personal consumption and drives economic growth. Thus, higher figures are typically seen as bullish for the US dollar (USD), while lower numbers are regarded as bearish.