Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist
USD extends gains on hot PPI
The US dollar gained for the fifth-straight day on Thursday after a hotter-than-expected US producer inflation number.
Headline producer price inflation came in at 3.0% in annual terms, versus 2.6% expected, while excluding food and energy was reported at 3.4% versus the 3.2% forecast.
The USD index gained 0.4% with the greenback stronger in most markets.
Euro, Swiss franc both lower after cuts
The euro was weaker while the Swiss franc led losses overnight after rate cuts from the European Central Bank and Swiss National Bank
The European Central Bank cut rates by an as-expected 25bps while the Swiss National Bank surprised markets with a larger-than-expected 50bps.
The SNB said that one reason for the larger move was to quell the recent gains in the CNH with the central bank saying it remains “willing to intervene in the foreign-exchange market as necessary.”
Aussie job gains short lived
The Australian dollar initially rallied yesterday after a stronger than expected jobs number.
The November jobs report found 35.6k new jobs were added versus the 26.0k forecast. The unemployment rate fell from 4.2% to 3.9%.
However, the Aussie’s gains were short lived, with the AUD/USD ending the day flat and back near one-year lows.
USD extends gains Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 9 – 14 December
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
