Forexlive Americas FX news wrap: Initial jobless claims drop, USD stays strong ...Middle East

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US initial jobless claims 201K vs 218K estimateUS December ADP employment +122K vs +140K expectedFOMC Minutes: Participants saw gradual move to more-neutral stance if data as expectedFed's Waller: Will support further cuts in 2025 but pace will depend on inflation progressMore from Waller: Some of ongoing services inflation may represent lagged wage increasesUS November wholesale inventories -0.2% vs -0.2% expectedUS consumer credit falls $-7.49 billion versus $10.5 billion estimateU.S. Treasury auctions off $22 billion of 30 year bonds at a high yield of 4.913%Yellen: We haven't seen too much progress on inflation in the the past couple of monthsEIA weekly US crude oil inventories -959K vs -184K expectedQuantum computing stocks crater after Nvidia's Jensen Huang pours cold water prospectsThe angst is rising in the UK as 10-year yields hit the highest since 2008

Gold up $13 to $2662US 10-year yields flat at 4.68%WTI crude down 93-cents to $73.32S&P 500 up 0.2%USD leads, GBP lags

The US dollar finished as the top performer once again today. In the bigger picture, the market is getting increasingly anxious about Trump taking office and placing tariffs. With the whole world as a target, the only safe place is the US dollar. The rhetoric isn't going to get any quieter, including after Trump takes office.

Economic data was mixed with the ADP number a negative for employment while jobless claims dropped. The Fed Minutes were largely ignored but Waller offered up comments that were more dovish than expected, highlighting that he believes rate cuts will continue. That runs counter to the global bond market, which is either pricing in higher inflation, higher US deficits or some kind of trade uncertainty.

Reminder that Thursday is something of a holiday for US market's due to Jimmy Carter's funeral and Friday is non-farm payrolls.

This article was written by Adam Button at www.forexlive.com.

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