What awaits us during today's trading ?

The US dollar stabilized on Wednesday, trading obliquely upwards, as investors waited to see if the Fed would provide a hard cut before the meetings of other major central banks this week, pushing the Australian dollar and also the New Zealand dollar to new lows.

The Fed is widely expected to cut interest rates by 25 basis points on Wednesday, with markets estimating a probability of more than 95% at the moment.

The focus will also be on the new economic forecasts of policymakers for 2025 that will be released along with today's decision, and precisely to what extent Fed officials believe that they will reduce interest rates next year.

Data released on Tuesday once again showed the resilience of the US economy after retail sales exceeded expectations by jumping by 0.7% in November, supported by a rise in car purchases and online purchases.

DXY

The US dollar index, which measures the dollar against a basket of currencies, has not changed much, hovering near the levels of 107.00 since the beginning of the week's trading.

AUDUSD

The Australian dollar fell close to the levels of 0.6300 dollars, which is its lowest level for more than a year, namely in October 2023.

NZDUSD

The New Zealand dollar also reached its lowest levels in more than two years, as more optimistic economic news from the United States focused investors ' attention on the US dollar, which led to a decline in the Australian and New Zealand dollars.

USDJPY

The dollar-yen is still trading near the 153.50 levels at which it opened this week, and the markets have also significantly reduced bets that the Bank of Japan will raise interest rates on Thursday in favor of an increase in January, after a series of media reports indicating that the central bank may take a cautious stance.

GBPUSD

The British pound is trading against the US dollar around the levels of 1.2700 now, the Bank of England is also expected to keep interest rates steady on Thursday as well, and investors curbed bets on a rate cut next year after data on Tuesday showed that British wage growth rose more than expected.

However, the British pound is now starting to decline after data showed that the monthly inflation rate slowed by more than expected in November, which was released a little while ago.

EURUSD

The EURUSD pair settled near the levels of 1.0500, rising slightly today, in light of the scarcity of European data.