Forex Today: EUR runs, pound suffers on fundamental developments

FXStreet Team FXStreet

Here is what you need to know on Thursday, December 3:

Volatility continues, and the dollar remains far from being the king. Speculative interest has been trying to digest multiple fundamental news, most of them positive. The US Congress is ready to resume discussing a stimulus package, much larger than the previously proposed. The UK has authorized the emergency use of Pfizer’s vaccine. Other countries are also rushing into approving this and other vaccines.

On the downside, Brexit's never-ending drama continues. EU chief Brexit negotiator Michel Barnier warned the UK that a deal must be reached before the end of this week. “A deal hangs in the balance,” he added as negotiating teams have been locked in the last few days amid divergences about fisheries and a level playing field. It has been 1,623 days since the Brexit referendum and there are just 29 days left for leaders to clinch a deal.

The EUR/USD pair trades near a yearly high of 1.2108, as tepid US employment-related data pressured the greenback alongside risk appetite. AUD/USD pressures 0.7400 after upbeat Q4 Australian GDP.

GBP/USD hovers within familiar levels unable to establish a clear direction on Brexit jitters. USD/JPY is also directionless yet above 104.00.

Gold surged to the 1,830.00 area, holding on to daily gains. WTI also recovered, ending the day at $45.00 a barrel.

Equities trade mixed, Wall Street pushed away from early lows but was unable to post substantial gains, weighed by a soft ADP report. Yields posted a modest intraday advance, supported by US COVID-19 relief package chatter.

Only one resistance barrier ahead of Ethereum price may prevent it from surging to $1,000

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FXStreet Team

FXStreet

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.