Here’s what you need to know on Wednesday, December 10:
Markets remain on alert in the run-up to very important monetary policy announcements from the US Federal Reserve which are scheduled to take place later in the North American session on Wednesday.
The US Dollar (USD) has paused its recent rebound against its six major rivals, as traders prefer to remain on the sidelines, and refrain from taking any directional bets ahead of the Fed’s decision.
US dollar price today
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed today. The US dollar was weakest against the Australian dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.05% | -0.07% | -0.09% | -0.00% | -0.11% | 0.02% | -0.01% | |
| euro | 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% | |
| Canadian | 0.00% | -0.06% | -0.06% | -0.10% | -0.11% | 0.01% | -0.01% | |
| Australian dollar | 0.11% | 0.06% | 0.05% | 0.01% | 0.11% | 0.13% | 0.10% | |
| New Zealand dollar | -0.02% | -0.08% | -0.09% | -0.11% | -0.01% | -0.13% | -0.04% | |
| Swiss franc | 0.01% | -0.04% | -0.05% | -0.09% | 0.00% | -0.10% | 0.04% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The Fed is widely expected to cut rates by 25 basis points to 3.5%-3.75% after its December policy meeting, but the Dot Plot, FOMC vote split and Chairman Jerome Powell’s comments will hold the key to gauging the path forward on interest rates in 2026.
Traders are bracing for a hawkish tone from the Federal Reserve as concerns about inflation may overshadow recent signs of a labor market slowdown.
Meanwhile, focus will also be on US President Donald Trump’s plans to begin his latest round of interviews, with an interview with former Federal Reserve Governor Kevin Warsh on Wednesday.
Kevin Hassett, a White House economic adviser and Trump’s top pick for the next Fed chair, said Tuesday there was “plenty of room” to cut interest rates further, though he added that if inflation rose, the calculations could change, according to Reuters.
On the economic data front, the Labor Department’s Bureau of Labor Statistics said Tuesday that job openings, a measure of labor demand, rose by 12,000 to 7.670 million by the last day of October.
U.S. private sector companies added an average of 4,750 jobs per week in the four weeks ending Nov. 22, according to data released Tuesday by Automatic Data Processing (ADP).
Earlier in the Asian session on Wednesday, China’s National Bureau of Statistics (NBS) showed that the country’s CPI rose at an annual rate of 0.7%, which was in line with market expectations, but the monthly CPI fell by 0.1%, indicating persistent deflationary pressures.
AUD/USD reverses dismal decline led by Chinese inflation data in early Europe, returning to green near 0.6650 amid broad US dollar weakness.
The biggest mover in Asia was the Japanese yen, initially hitting two-week lows against the US dollar near 157.00 before rebounding on expectations of a monetary policy divergence between the Fed and the Bank of Japan and verbal intervention from Japan. Japanese Prime Minister Sanae Takaishi noted on Wednesday that “the government will take appropriate action against excessive and unorganized movements.” USD/JPY It is falling near 156.75 as of writing.
US Dollar/Canadian Dollar The pair is trading in a narrow range around 1.3850, awaiting the Bank of Canada’s (BoC) policy stance after cutting its benchmark interest rate to a three-year low of 2.25% in October.
EUR/USD Weak trading activity is seen below 1.1650 at the start of the European session. European Central Bank (ECB) President Christine Lagarde is scheduled to participate in a moderated discussion on euro and US dollar futures as global currencies at the Financial Times’ Global Governing Council conference, in London, at 10.55 GMT.
GBP/USD The price has regained the 1.3300 level, although it appears to lack buying interest after that. Bank of England (BoE) Governor Andrew Bailey is set to take part in a pre-recorded friendly conversation on financial stability at the Financial Times (FT) Global Board Conference in London.
gold It remains defensive but holds above $4,200 early Wednesday. Silver rebounded to record highs after the $61 level.
