Weekly labor market data published today showed mixed signals: initial jobless claims fell from 224.0K to 214.0K, coming in below the forecast of 224.0K. The four-week moving average declined from 217.5K to 216.75K, while continuing claims increased from 1.885M to 1.923M. Overall, the labor market continues to show signs of cooling, although less pronounced than earlier. In addition, the White House confirmed its decision to raise tariffs on imports of Chinese semiconductors starting in June 2027; until then, the initial tariff rate for these products will remain at 0.0%.

Eurozone

The euro is weakening against the yen and shows mixed performance against the US dollar and the British pound.

Investor and forex trader activity remains subdued ahead of the Christmas holidays. Meanwhile, the Bank of Spain has upgraded its economic outlook, reinforcing the country’s position as one of the fastest-growing economies in the euro area. GDP growth forecasts were revised up to 2.9% for this year (from 2.6%), 2.2% for next year, and 1.9% for 2027. Inflation is expected at 2.7%, 2.1%, and 1.9%, respectively. Analysts note that, against the backdrop of slowing growth in other regions, Spain continues to show resilience supported by strong domestic demand and rising tourist inflows.

United Kingdom

The British pound is weakening against the yen today and shows mixed dynamics against the US dollar and the euro.

Traders, including those in the forex market, are preparing for the Christmas holidays, reducing activity. However, in the medium term, the pound continues to find support from monetary factors and macroeconomic data. In the third quarter, GDP data showed a sharp increase in investment: up 1.5% quarter-on-quarter versus expectations of a 0.3% decline, and up 2.7% year-on-year compared with 0.7% previously. These figures strengthen expectations of economic recovery and a pause in the monetary easing cycle, which Bank of England officials hinted at following the December meeting.

Japan

The Japanese yen is strengthening against the euro, the pound, and the US dollar.

Minutes from the Bank of Japan’s October meeting were released today. According to the document, board members discussed the need to raise interest rates toward a level considered neutral. However, some officials warned that a sharp depreciation of the yen could significantly boost inflation through higher import prices. As a result, BoJ economists see favorable conditions for maintaining a hawkish stance but want more clarity on wage growth next year, especially as pressure from US trade tariffs on the economy persists.

Australia

The Australian dollar is strengthening against the euro and the pound, while showing mixed performance against the yen and the US dollar.

In the medium term, monetary factors continue to support the currency. Earlier this month, the Reserve Bank of Australia (RBA) kept the interest rate unchanged at 3.6%, noting in its statement that inflation has accelerated and may prove more persistent, requiring close monitoring. RBA Governor Michele Bullock later adopted a hawkish tone, ruling out further rate cuts and warning that tighter monetary policy may be needed if consumer price growth does not slow.

Oil

Oil prices are generally stable today, trading in narrow sideways ranges as investors adopt a wait-and-see approach ahead of the Christmas holidays, with the market influenced by several opposing factors.

On the one hand, crude prices are supported by strong US GDP data for the third quarter, which showed economic growth of 4.3%, raising expectations of higher global demand for energy. On the other hand, gains are capped by the latest weekly report from the American Petroleum Institute (API), which showed an increase in fuel inventories by 2.4 million barrels.