Here is what you need to know on Thursday, December 5:
The market mood has improved after reports said the US and China are closer to an agreement than the rhetoric suggests. However, some investors have seen such positive headlines before. The clock is ticking down to the December 15 deadline.
US data: The ADP Non-Farm Payrolls figures badly disappointed with an increase of only 67,000 private-sector jobs. On the other hand, the services sector continues growing and creating jobs at a satisfactory pace according to the ISM Non-Manufacturing Purchasing Managers' Index. Tension is mounting ahead of Friday's Non-Farm Payrolls report.
GBP/USD is holding onto gains above 1.31 after surging on Wednesday. Recent opinion polls have shown Conservatives stabilizing and maintaining their gap with Labour, after it had narrowed beforehand. Final Services PMI was upgraded to 49.3 points. Prime Minister Boris Johnson is presenting a plan for his first 100 days in office.
Oil prices have stabilized after rising on Wednesday following a significant drop in inventories. WTI trades around $58 and Brent around $62. Speculation about the OPEC meeting and Saudi Aramco IPO are also in play. See OPEC Meeting Preview: Do production cuts mean higher crude prices?
The Canadian Dollar has extended its rise after the Bank of Canada left rates unchanged and seemed to see the glass half full, praising a rebound in investment. The BOC is also content with the housing sector.
The Australian dollar has retreated after Australia reported flat retail sales in October while the New Zealand dollar advanced amid capital buffer rules which would allow for tighter monetary policy. Moreover, ANZ forecast only one rate cut in 2020.
The Japanese yen is shrugging off the government's announcement of considerable fiscal stimulus. The changes in the market mood dominate yen trading.
Cryptocurrencies are recovering after whipsawing traders on Wednesday with a surge followed by a plunge.
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