Forex Today: Calm before the storm

What you need to take care of on Friday, December 9:

The better tone of US stocks weighed on the American Dollar. The USD finished the day with losses against most of its major rivals, shedding most ground early in the US session, and spending the rest of it in consolidation mode.

Volatility decreased amid the absence of first-tier figures and ahead of central banks’ decisions next week, as speculative interest lacks certainties about their next moves on monetary policy. The US Federal Reserve, the European Central Bank, the Switzerland National Bank and the Bank of England will provide monetary policy updates next week.

The EUR/USD pair trades at around 1.0540, while GBP/USD is up to 1.2235. AUD/USD advanced for a second consecutive day and hovers around 06760.

Bank of Canada Deputy Governor Sharon Kozicki said the bank will study the latest economic data to gauge whether or not to raise interest rates, adding it would move forcefully if necessary. The Canadian Dollar strengthened, with USD/CAD down to 1.3580.

The USD/JPY saw little action and finished the day little changed at around 136.70. The USD/CHF is down to 0.9360.

Gold posted a modest intraday advance and trades around $1,787 a troy ounce. Crude oil prices, on the other hand, kept falling with WTI trading at $71.60 a barrel.

Friday will start with China publishing the November Consumer Price Index and the Producer Price Index. Later in the day, it will be the turn of the US to unveil wholesale inflation. The US PPI is expected to have risen by 7.4% YoY in November, down from 8% in the previous month.