Forex Today: Trump's trade wars weigh on sentiment, Boris holds lead, critical US data eyed

Here is what you need to know on Wednesday, December 4:

Trade tensions remain high after President Donald Trump's comments on Tuesday that a deal may await after the November 2020 Presidential elections. Moreover, the tariffs planned for December 15 are still intact and the world's largest economies are also arguing about other topics such as human rights in Xinjiang. US lawmakers approved sanctions against officials in the Western province, and Beijing vowed to retaliate. 

The US dollar has generally been on the back foot, also owing to the weak ISM Manufacturing Purchasing Managers' Index on Monday. The calendar features the services PMI (see preview) and the ADP Non-Farm Payrolls (preview) – both also serving as hints toward Friday's jobs report. EUR/USD remains close to 1.11 and GBP/USD is flirting with 1.30. 

UK elections: Fresh opinion polls have been showing a steady lead for the Conservatives on Labour of around ten points. Trump denied interest in the National Health Service, one of the hot topics in the elections. Markit's final Services PMI is set to confirm contraction in Britain's largest sector. 

AUD/USD has retreated from the highs after third-quarter Gross Domestic Product disappointed with only 0.4%. An upward revision to second-quarter figures fails to cheer the Aussie. 

USD/CAD has been trading around 1.33 ahead of the rate decision from the Bank of Canada. The BOC will likely leave its policy unchanged. See Bank of Canada Preview: Upbeat tone on investment may send C$ higher

Oil prices have been edging lower despite the Iraqi desire to agree on production cuts in the upcoming OPEC+ meeting.

Cryptocurrencies are on the back foot with Bitcoin trading below $7,200.

More A China trade conversation with FXStreet senior analyst Joseph Trevisani

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