Forex Today: Focus shifts to US JOLTs report and Fedspeak

Pablo Piovano FXStreet

The Greenback rose to three-day highs amid a strong resurgence of the bid bias, supported by Trump’s threats of further tariffs along with political concerns in France.

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

The US Dollar Index (DXY) advanced past the 106.70 level against the backdrop of mixed US yields across the curve and a widespread sell off in the risk complex. The US labour market takes centre stage with the release of the JOLTs Job Openings for the month of October, seconded by the RCM/TIPP Economic Optimism Index, and the weekly report on US crude oil inventories by the API. In addition, the Fed’s Goolsbee and Kugler are expected to peak.

EUR/USD came under increased selling pressure and broke below 1.0500 in response to rising political unrest in France. The ECB’s Cipollone is due to speak.

GBP/USD mirrored its risky peers and reversed a multi-day positive streak, approaching the 1.2600 region. The BRC Retail Sales Monitor will be the only data release across the Channel.

USD/JPY ended the day with a modest decline following an initial advance to the 150.70 zone. The JGB 10-year Auction will be the only event on the local docket.

AUD/USD made a sharp U-turn and breached the key 0.6500 support to hit new multi-day lows on Monday. Next on the Australian docket will be the Q3 Current Account results, along with the Ai Group Industry Index and the final Judo Bank Services PMI.

WTI could not sustain earlier gains and ended the day near the $68.00 mark per barrel as traders kept assessing the geopolitical scenario as well as the health of the US economy.

Prices of Gold set aside four consecutive days of losses and briefly flirted with the $2,620 mark per troy ounce amid the stronger US Dollar and mixed US yields. Silver prices followed suit and left behind two straight days of gains.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD trims gains, back to around 1.3500

GBP/USD now surrenders part of the earlier move to multi-week peaks around 1.3530 and comes close to the 1.3500 support on Monday. Cable’s uptick comes in tandem with decent gains in the Greenback, always amid persistent uncertainty lingering over the reopening of the Strait of Hormuz and US-Iran talks.

EUR/USD slips to daily lows near 1.1540

EUR/USD now loses further momentum and recedes toward the 1.1540 zone, or daily lows, on Monday. The pair’s bearish performance action comes as investors continue to assess Friday’s disappointing US jobs data in a context where renewed tensions in the Middle East lend decent support to the US Dollar.

Gold clings to daily gains; focus is back to $4,400

Gold picks up pace and advances past the $4,350 mark per troy ounce, adding to Friday’s gains. That said, the yellow metal keeps pushing harder despite the better tone in the US Dollar, and is closely following the Fed’s interest-rate outlook as well as developments in the Middle East

Crypto Today: Bitcoin, Ethereum, XRP eye short-term recovery amid ETF inflows

Cryptocurrency prices are gaining traction on Monday, with Bitcoin (BTC) trading above $65,000, Ethereum (ETH) holding the near-term $1,900 support and Ripple (XRP) hovering above the critical $1.00 demand zone. The broad recovery comes amid capital inflows through US-listed Exchange-Traded Funds (ETFs).

US Payrolls miss – RBA on deck tomorrow

It would be remiss of me not to kick off this morning’s report with a rundown of last Friday’s US jobs report, which was a belter. Headline payrolls fell by 23,000, versus expectations of an 80,000 gain. The BLS noted that May was revised down by 66,000 (from 129,000) and June by 37,000 (from 57,000), resulting in combined May-June revisions of 103,000 lower than previous reports.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.