Forex Today: Dollar creeps higher as focus shifts to November Nonfarm Payrolls
|Here is what you need to know on Friday, December 3:
The US Dollar Index closed the second straight day modestly higher on Thursday and holds its ground early Friday as investors gear up for the November jobs report from the US. Investors expect Nonfarm Payrolls to rise by 550,000 following October's increase of 531,000. October Retail Sales data for the euro area, Canadian employment figures and the ISM Services PMI survey from the US will be featured in the economic docket as well.
Risk flows dominated the financial markets on Thursday and Wall Street's main indexes managed to register impressive gains. The US Senate has voted to approve the bill to avert a government shutdown over the weekend. Meanwhile, Bloomberg reported that a recently conducted research in the UK found that most of the booster shots were able to increase the antibodies against the Omicron variant. Moreover, GlaxoSmithKline said Its COVID-19 antibody drug, Sotrovimab, was likely effective against the new variant.
US stocks futures are trading flat in the early European session and the 10-year US Treasury bond yield is moving sideways near 1.44% after rising nearly 3% on Thursday. In an interview with the Financial Times, Cleveland Fed President Loretta Mester noted that the economy was better at dealing with new coronavirus variants.
EUR/USD has retreated to 1.1300 area with the greenback preserving its strength ahead of the weekend.
GBP/USD managed to close in the positive territory on Thursday but seems to be having a difficult time pulling away from 1.3300 early Friday.
USD/JPY continues to edge higher above 113.00 on improving market sentiment but the pair's upside remains limited with US T-bond yields losing traction.
USD/CAD is edging lower toward 1.2800 as crude oil prices stage a rebound following a sharp decline witnessed on OPEC+ decision to go ahead with their original plan to increase the oil output by 400,000 barrels per day in January.
Gold slumped to its weakest level in a year at $1,761 on Thursday but recovered above $1,770 early Friday. The yellow metal continues to have a hard time finding demand when risk flows dominate the financial markets.
Cryptocurrencies: Bitcoin is moving up and down in a narrow channel above $55,000. Ethereum closed the previous two trading days in the negative territory and seems to have gone into a consolidation phase around $4,500.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.