The global financial markets experienced notable fluctuations as fresh economic data and policy signals emerged from major economies. In the United States, private sector employment saw a rise of 122,000 in December, although it fell short of the anticipated 140,000. Meanwhile, Initial Jobless Claims declined to 201,000 for the week ending January 4, down from 211,000 the previous week. Across the crypto landscape, a significant price decline resulted in liquidations totaling $694.11 million within a mere 24 hours. As market participants digest these developments, attention turns to upcoming Eurozone Retail Sales data and insights from Federal Reserve officials.
In Europe, the currency markets reflected a cautious tone. The GBP/USD remained under pressure, recording nine-month lows near 1.2300 during Thursday's European trading hours. Similarly, the EUR/USD pair experienced a downward trend, registering minor losses on Wednesday. Germany’s industrial production figures, however, offered a glimmer of optimism. According to Destatis, industrial output expanded by 1.5% in November, surpassing expectations of a 0.5% increase.
In the cryptocurrency market, Bitcoin continued its downward trajectory, trading below the $96,000 mark on Wednesday after a more than 5% decline the previous day. This downward pressure comes amid broader market adjustments following recent price swings.
Amid these economic indicators, political developments in the United States also captured investor attention. President-elect Donald Trump is reportedly considering declaring a national economic emergency to facilitate a new tariff program. This move could have significant implications for international trade and economic relations.
The US Dollar (USD) demonstrated strength against major rivals for a second consecutive day on Wednesday. Despite this, the AUD/USD pair showed minimal reaction to US economic data releases and news surrounding President-elect Trump’s potential tariff plans. Meanwhile, the USD/JPY pair posted modest gains for the third straight day but struggled to maintain a strong upward momentum.
In commodities, gold prices remained relatively stable with XAU/USD trading in a narrow band above $2,660 early Thursday. The precious metal's steady performance reflects a cautious market environment as investors weigh potential risks and opportunities.
In Australia, retail sales exhibited a positive trend with a monthly increase of 0.8% in November, according to the Australian Bureau of Statistics. This growth underscores consumer resilience amid broader economic uncertainties.
The minutes from the Federal Reserve's December policy meeting revealed that nearly all officials acknowledged increasing upside risks to inflation. Most agreed on the necessity of a cautious approach toward further policy easing, emphasizing the need for careful evaluation of economic conditions.