Forex Today: Happy Friday for trade talks, GBP/USD holding onto Boris boost, all eyes on the NFP
|Here is what you need to know on Friday, December 6:
Trade: Global Times, a Chinese media outlet, has reported that Sino-American trade talks remain on track and the market mood is upbeat. President Donald Trump had previously echoed the same sentiment. The clock is ticking toward the December 15 deadline, when the US is set to slap new tariffs on China. The latest commerce data has shown sliding trade between the world's largest economies while they negotiate farm purchases and tariffs.
Jobs Friday: Economists expect the US Non-Farm Payrolls to show an increase of around 180,000 positions in November, and Average Hourly Earnings to increase by 3% yearly. The all-important NFP is due before the last Federal Reserve's last decision of 2019. Indicators leading toward the release were mixed. The University of Michigan's preliminary Consumer Sentiment Index for December is also of interest.
- Previews: Nonfarm Payrolls Preview: Economic health vs trade war, who will win the battle?
- US Non-Farm Payrolls November Preview: Labor market continues to defy concerns
Canada's jobs report is forecast to show a rise of 10,000 jobs in November and no change in the 5.5% Unemployment Rate. See Canadian jobs preview: Three reasons why USD/CAD may extend its falls
GBP/USD has been trading at higher ground around 1.3150, amid a growing notion that the Conservatives are on course to a victory in six days' time. Britain Elects' poll tracker is showing a 9.6-lead for Prime Minister Boris Johnson's party.
Europe: France has been rocked by a general strike and transport disruptions after President Emmanuel Macron presented a pension reform. In Germany, the new leadership of the SPD, Chancellor Angela Merkel's junior coalition partner, will assume their posts today and they may accelerate the breakup of the partnership. German Industrial Production is set to show a modest increase in output.
OPEC and non-OPEC countries are mulling a cut of 500,000 barrels per day as deliberations continue. Russia secured an exclusion of condensate from its own quota. Deliberations continue in Vienna. WTI Oil is trading around $58. Saudi Aramco successfully completed its Initial Public Offering by raising $26.5 billion, and it is worth $1.7 trillion.
The kiwi dollar is extending its gains after the Reserve Bank of New Zealand said the new capital rules should not impact trade policy.
More: US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP.
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