Dollar weakens against yen, gold surpasses $2,000 as markets eye economic reports

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Dollar weakens against yen, gold surpasses $2,000 as markets eye economic reports

The USD has shown particular weakness against the Japanese yen during this week's trading sessions, while anticipation builds for key economic reports ahead of the Thanksgiving holiday. The US Dollar Index saw minor gains following a slump on Monday, with the Federal Reserve's October meeting minutes revealing that additional tightening could be on the horizon if inflation remains stubbornly high.

Investors are now looking forward to today's release of Durable Goods Orders and Initial Jobless Claims data from the US, as well as the European Consumer Confidence Index for November. These reports are expected to provide further insight into the global economic outlook as central banks grapple with inflationary pressures.

In currency markets, the EUR/USD pair managed to stay above the 1.0900 level despite a downturn on Tuesday. European Central Bank President Christine Lagarde has reiterated concerns over persistent inflation, which continues to challenge policymakers.

The British pound has seen a notable rise, reaching highs not seen since early September, pushing past the 1.2550 mark before finding stability. This surge comes as British Finance Minister Jeremy Hunt prepares to deliver the Autumn Budget statement against a backdrop of efforts to stabilize the currency.

In Asia, Japan's economic sentiment has deteriorated due to reduced demand affecting capital and consumer spending. The USD/JPY pair, however, has made a comeback, approaching the 149.00 range after experiencing a significant dip earlier in the week.

Meanwhile, gold prices have once again breached the $2,000 threshold. The XAU/USD pair has reached this milestone for the second time since early November, reflecting investors' appetite for safe-haven assets amid ongoing economic uncertainty.

China's growth projections for next year have been set at 4.5% to 5%, with a cautious monetary policy expected in light of concerns about interest rate gaps with Western countries. These insights suggest that global financial markets remain attuned to the delicate balance between fostering growth and containing inflation.

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