Here is what you need to know on Friday, November 8:
The US dollar is holding onto its gains, as bond yields remain elevated. Markets focus on the US jobs report for December, which could be negative. President Trump sent a calming message denouncing the Capitol chaos, potentially defusing tensions. Canada's labor figures and Bitcoin's ascent to near $40K are also eyed.
US Treasury yields have been extending their gains, trading near 1.10%. The move followed Democrats' win of the Senate, which would enable passing massive stimulus and raising American debt. Details about President-elect Joe Biden's economic plans are set to emerge.
Is King Dollar ready for a comeback? Looking at the blue wave, Capitol chaos and the Fed
Gold remains on the back foot, trading closer to $1,900 as returns on US Treasuries remain elevated.
Capitol chaos: President Donald Trump made a sharp U-turn, denouncing the rioters who stormed the Capitol and temporarily delayed the certification of Biden's win. He also promised to help in the transition to a new administration. Several cabinet members resigned and Democrats called for impeaching Trump, despite the short time he has in office. Investors are shrugging off the political drama.
The final Nonfarm Payrolls report of 2020 is set to show a modest gain of 71,000 jobs amid the winter wave of the virus. Indicators leading to the publication have been mixed, with ISM's Purchasing Managers' Indexes painting an upbeat picture while ADP's private-sector figures falling short of estimates.
See:
- Nonfarm Payrolls Preview: Long path to recover to be even longer
- US Nonfarm Payrolls December Preview: Labor economy woes escalate
Canada releases its labor statistics at the same time and economists expect a loss of jobs and an increase in the Unemployment Rate. USD/CAD has been trading below 1.27 amid the rise in oil prices earlier this week. The black gold benefitted from Saudi Arabia's unilateral production cut.
Canadian Jobs Preview: Expectations for job losses may result in a loonie rally
Coronavirus continues raging in the US and Europe. America's daily death toll is at around 4,000 and hospitalizations are above 130,000. UK Prime Minister Boris Johnson announced a ramp-up of its vaccination campaign.
Israel, the world's leader in immunization, aims to vaccinate all adults by the end of March. According to Pfizer, its inoculation is able to cope with both the British and South African variants of COVID-19.
Bitcoin has been extending its gains, nearly hitting the $40,000 mark. Ethereum is at around $1,200.
Five factors moving the US dollar in 2021 and not necessarily to the downside
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.