Major currencies little changed, eyes on US data

Currently, major currencies are holding steady, with the dollar stabilizing after struggles in the past week. A stronger Chinese yuan acts as a headwind for the dollar, with USD/CNY approaching 7.04. The onshore yuan has reached its highest level against the dollar since October 2024. The euro has also made notable gains against the dollar, aiming for the 1.1800 mark, though buyers are taking a breather today. The pair remains around 1.1750, constrained by large option expiries at that level, despite mixed PMI data from the euro area. Additionally, USD/JPY is again testing below the 155.00 mark, which has presented a challenge to sellers since early December, serving as a significant daily support level. Attention will shift to the upcoming US labor market report and retail sales data. These will combine October and November numbers, making them messy, yet they provide a critical snapshot of the US economy that traders have been eagerly awaiting, especially in this final real trading week of the year.