The euro was lower following an expected rate cut of 25 basis point cut by the European Central Bank and a policy statement removing the central bank’s guidance to keep interest rates sufficiently restrictive.

The Swiss franc tumbled the most since August against the common currency after the Swiss National Bank opted to slash rates by 50 basis points, its biggest reduction in almost 10 years.

ECB President Christine Lagarde highlighted downside risks to growth and uncertainty regarding future tariffs with some policymakers pushing for a bigger half-percentage-point cut.
She also flagged that domestic inflation remained uncomfortably high.

The SNB's chairman, Martin Schlegel, said they will continue to monitor the situation closely and adjust monetary policy to ensure price stability over the medium term.

U.S.
Treasury yields firmed after producer prices rose a greater-than-expected 0.4% in November, reversing an earlier drop after a reported rise in weekly jobless claims.

The pound fell ahead of a UK GDP report on Friday and Bank of England policy meeting next week.

China pledged to increase the budget deficit and loosen monetary policy to maintain a stable economic growth rate.

U.S.
President-elect Donald Trump has invited Chinese President Xi Jinping and other foreign leaders to his inauguration next month.

Treasury yields were up 2 to 6 basis points after a Treasury 30-year auction and earlier data.
The 2s-10s curve was up about 2 basis points at +13.4bp.

The S&P 500 fell 0.3% amid weakness in healthcare and materials.

WTI oil was up 0.2% on Fed rate cut expectations even as the International Energy Agency forecast ample oil supplies in 2025.

Gold slid 1.2% on profit-taking after reaching a five-week high.

Copper fell 0.46% on a slightly stronger dollar and a lack of clarity over China stimulus.

Heading toward the close: EUR/USD -0.09%, USD/JPY +0.03%, GBP/USD -0.49%, AUD/USD +0.03%, DXY +0.11%, EUR/JPY -0.10%, GBP/JPY -0.47%, AUD/JPY +0.08%.

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