Forex Today: China lifts mood, Boris and Merkel in trouble, critical data kicks off December

Here is what you need to know on Monday, December 2:

The market mood is positive after the Chinese Caixin Manufacturing Purchasing Managers' Index beat expectations with 51.8 points. The official PMI also exceeded projections and rose above 50 points, indicating expansion. USD/JPY is rising as demand for the safe-haven yen is diminishing. Gold is struggling around $1,460.

Trade talks: The Chinese Global Times outlet has said that the world's second-largest economy will not settle from canceling the next round of tariffs but wants the removal of previous months. Washington is set to slap tariffs on Beijing on December 15.

AUD/USD is rising on the upbeat market mood and shrugging off disappointing Australian Building Approvals and Company Operating Profits. 

UK elections: A batch of weekend polls has shown that Labour is narrowing the gap with the Conservatives. The Tory lead ranges from six to 15 points. A terror attack on Friday has overshadowed the campaign with both parties blaming each other for policies leading to it. GBP/USD is looking for a new direction above 1.29. Markit's final UK Manufacturing PMI is set to confirm the score of 48.3 points, reflecting contraction.

Germany: Chancellor Angela Merkel's government is in danger after the SPD, the junior coalition partner, voted to replace its leaders with new ones that want more left-leaning policies. EUR/USD has shrugged off the developments. 

Christine Lagarde, President of the European Central Bank, will testify in the European Parliament for the first time. The bank faces a major policy review and may alter its inflation mandate. Her appearance on Monday may provide hints toward her first rate decision on December 12. 

Final manufacturing PMIs are set to confirm contraction in all major euro-zone countries, except France, which is enjoying modest growth in the sector.

The US ISM Manufacturing PMI is the highlight of the economic calendar as it serves as a hint toward the Non-Farm Payrolls in addition to providing a snapshot for the industrial sector. It is expected to improve but remain below 50 points. See ISM Manufacturing PMI preview: promise looking for confirmation

Cryptocurrencies are on the back foot, with Bitcoin trading below $7,300 and Ethereum under $150. 

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