Daily FX Analysis – GBP/USD Peaks, EUR/USD Volatile, USD/JPY Tense, AUD/USD Comeback.
In the currency market, GBP/USD clings to gains above 1.2750 post-UK data, with real GDP expanding by 0.3% in November. The pair consolidates as investors await the crucial US inflation report for December. EUR/USD consolidates below 1.1000 amid a weakened US Dollar and geopolitical tensions, while USD/JPY struggles to capitalize on gains amid Middle East tensions. The Australian Dollar (AUD) retraces losses, nearing 0.6700, following mixed Chinese data. The focus remains on the upcoming US Producer Price Index (PPI) data, influencing currency movements in the global market.