The U.S. Dollar is trading lower against it’s G10 peers this morning as Traders look ahead to economic data releases and central bank decisions in Europe, Scandinavia, the UK, and Japan.
In the U.S., Traders are focused on tomorrow’s release of employment reports for October and November and on Thursday’s inflation release. Forecasts show a decline of approximately 60k jobs in October, a rebound addition of 50k jobs in November, and unemployment coming in at about 4.5%, which is marginally higher than September’s figures.
Traders are placing a good amount of importance on these releases as key data points to help build a more comprehensive picture of the economy and potential interest rates as we roll into 2026. We will also be hearing from Fed Governors Williams and Stephen Miran this afternoon, whose input will similarly help to paint that picture.
What to Watch This Week…
- Monex USA Online is always open
JPY ⇑
The Japanese Yen is the top performer against the Buck this morning as Traders brace for the Bank of Japan to hike interest rates to 0.75% on Friday. At a 95.2% probability of occurring, this hike will mark only the 5th move by the BoJ in the last 10 years and will bring Japanese interest rates to their highest point in 30 years. Japanese inflation data will also be released on Friday, which is expected to have slightly decreased nationwide.
GBP ⇑
The British Pound is one of the G10’s top performers against the Greenback this morning as Traders prepare for the Bank of England to lower the UK’s interest rate to 3.75% on Thursday. The cut, which is all but guaranteed at 90.1% probability, will be the BoE’s sixth cut of this cycle, in what is projected to be a narrow 5-4 vote. We are keeping a close eye on UK labor data tomorrow, and inflation on Wednesday.
