Forex Today: UK hard data and Fedspeak move into focus

Bullish momentum in the US Dollar (USD) has taken it to levels last seen in April 2025, as markets continue to bet on another interest rate hike at the Federal Reserve’s December meeting.

A pronounced recovery in US Treasury yields across maturities has helped lift the US Dollar Index (DXY) to fresh highs, just pips short of the key 103.00 hurdle. The data calendar features the regular weekly Initial Jobless Claims release, Existing Home Sales and the EIA’s weekly US crude oil inventory report. The Fed’s Hammack, Barr, Goolsbee and Daly are also scheduled to deliver remarks.

The sharp US Dollar rally has dragged EUR/USD below 1.1100 to levels last seen in May 2025. With no domestic data releases on the calendar, attention turns to speeches by the ECB’s Vujčić and Lagarde.

Under pressure from the Greenback’s strong gains, GBP/USD has revisited the 1.3270-1.3260 range, falling to four-week lows. Upcoming UK releases include the RICS House Price Balance, preliminary Q3 GDP Growth Rate, preliminary quarterly Business Investment figures, Balance of Trade data, Construction Orders/Output, Industrial/Manufacturing Production and the NIESR Monthly GDP Tracker.

As it approaches the key 160.00 barrier, USD/JPY has extended its advance to fresh two-month highs. Japan’s upcoming releases begin with weekly Foreign Bond Investment figures, followed by Producer Prices and remarks from the BoJ’s Asada.

Intensifying selling pressure across risk-sensitive assets has pulled AUD/USD towards 0.6840 for the first time since January. Australia’s calendar next brings the Melbourne Institute’s Consumer Inflation Expectations, alongside a speech by the RBA’s Baker.

Renewed tensions in the Middle East have helped front-month WTI futures (December contract) recover ground above $87.00 per barrel, snapping a run of three consecutive daily declines.

Further strength in the Greenback and a sharp rebound in US Treasury yields across maturities have kept Gold under selling pressure. Extending Tuesday’s retreat, the precious metal has slipped below the key $4,000 level per troy ounce.