FOREX TODAY: FOCUSING ON US JOB STATISTICS AND THE BOC RATE DECISION

What you need know on Wednesday, December 6 is as follows:

On Tuesday, the US Dollar (USD) surpassed its competitors for the second day in a row, as the USD Index reached its highest point in almost two weeks. With investors awaiting the release of the November ADP Employment Change report, the USD Index maintains its weekly gains at 104.00. Unit Labor Costs for the third quarter and the Goods Trade Balance for October will also be included in the US economic docket. In the latter part of the day, the Bank of Canada (BoC) will make its interest rate announcement.

According to US data released on Tuesday, the service sector's economic activity grew in November at a faster rate than anticipated. From 9.35 million in September to 8.7 million in October, fewer jobs were available. Even if the USD's gains in the early American session were capped by the mixed data, the cautious market sentiment helped the currency gain strength by the close of the day.

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. When compared to the Australian dollar, the US dollar was the strongest.

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.

Meanwhile, according to Reuters, the credit rating company Moody's downgraded its assessment of China's sovereign credit rating on Tuesday from “stable” to “negative,” noting growing threats to GDP and a crisis in the country's real estate market.

For the fifth day in a row, the EUR/USD pair ended Tuesday in negative territory as it was unable to overcome the bearish pressure. Early on Wednesday, the pair remains vulnerable and trades below 1.0800. Later in the session, Eurostat will release October retail sales data.

On Tuesday, USD/CAD increased to the 1.3600 region, but it lost momentum early on Wednesday. It is generally anticipated that the BoC will maintain the policy rate at 5%.

Tuesday saw losses for GBP/USD, but early on Wednesday it stabilized at roughly 1.2600. After its most recent meeting, the Financial Policy Committee of the Bank of England (BoE) will issue a statement.

Ryozo Himino, the deputy governor of the Bank of Japan (BOJ), stated on Wednesday that he has no specific timeline for ending the current monetary policy. Following these remarks, the USD/JPY slightly declined and was last observed varying inside a narrow channel at approximately 147.00.

After the erratic trading on Monday, gold continued its downward reversal, dropping to around $2,010 on Tuesday. Early on Wednesday, XAU/USD gained momentum and was last observed trading higher at $2,030.