FOREX TODAY: US INFLATION STATISTICS TO INFLUENCE TRADE AHEAD OF MEETINGS OF MAJOR BANKS

What you need know on Tuesday, December 12 is as follows:

Early on Tuesday, the US dollar faces demand challenges while release of the November Consumer Price Index (CPI) data. The US Dollar Index posted minor improvements on Monday, although 104.00. The ZEW for Germany and the Eurozone will be included on the European economic docket.

The most recent auction of US Treasury notes with a maturity date of 10 years ended late on Monday, with a high-yield of 4.29% from 4.51%. As a result of this development, the US 10-year T-bond dropped and ended the day lower, weakening the USD relative to its main competitors. Early on Tuesday, US stock index futures are trading the 10-year US yield is down almost 1% on the day at about 4.2%. Investors shifted to a cautious position when the US Central Command reported that Houthi rebels fired a land-based missile at a merchant vessel in the Red Sea.

US dollar exchange rate for this week

The US dollar's (USD) percentage movement compared to a list of major currencies for this week is displayed in the table below. In relation to the New Zealand Dollar, the US dollar was the weakest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.

The US Consumer Price Index (CPI), which measures inflation, is expected to decrease from 3.2% in October to 3.1% in November on an annual basis. To match the prior gain, a 4% increase in the Core CPI is anticipated in the same period, which does not include volatile food and energy prices.

US CPI Preview: The Fed's final meeting of the year is expected to be guided by inflation statistics from November.

The National Australia Bank's Business Confidence Index fell to -9 in November from -3 (reduced from -2) in September, according to statistics released earlier in the day from Australia. From 13, the Business Conditions Index dipped to 9. Governor of the Reserve Bank of Australia (RBA), Michele Bullock, stated on Tuesday, decision-makers and reaffirmed their commitment to monitoring new data. It has been climbing by 0.5% every day and was last seen touching 0.6600.

The employment change for October was +50K, according to a report released by the UK's Office for National Statistics on Tuesday. The decrease in the Average Earnings Including Bonus showed in annual pay inflation to 7.2% from 8% in the same time, while the ILO Unemployment at 4.2% in the three months leading up to October. With the initial response, GBP/USD fell toward 1.2550 but was able to maintain above that level.

After finishing the first trading day, the EUR/USD began to move upward early on Tuesday, approaching 1.0800.

The risk-averse market climate and the resurgence of USD weakness led to an early Tuesday decline in USD/JPY. The pair was down over 0.5% on the day below 145.50 as of the time.

On Monday, gold took a turn for the worst and fell below $1,980 for the first time in almost three weeks. With US yields on the decline, XAU/USD was able to gain traction.