A corrective move saw the Dollar give up some of Monday’s strong advance amid mixed US returns and despite a positive surprise from the US labor market ahead of the release of more critical data.
Here’s what you need to know on Wednesday, December 4:
The DXY Dollar Index faced some selling pressure, approaching the 106.00 region amid mixed returns and cautious investor sentiment ahead of Powell’s speech and key labor market data. MBA Weekly Mortgage Applications will be released first, followed by the ADP Employment Change report, S&P Global Final Services PMI, ISM Services PMI, Factory Orders, EIA Weekly Report on US crude oil inventories and the Fed’s Beige Book. Additionally, Chairman Powell will participate in a panel discussion, followed by Musalem’s speech.
EUR/USD managed to put some of Monday’s losses behind it and regained the area beyond the 1.0500 barrier. The final HCOB Services PMI in Germany and the euro bloc will be published, along with Output Prices in the euro zone. In addition, Lagarde and Cipollone of the ECB are expected to speak.
GBP/USD advanced noticeably and came within just a few pips of the key figure of 1.2700 due to the weakness of the Dollar. S&P Global’s final Services PMI comes next, along with BoE’s Bailey speech.
USD/JPY further extended its march south, breaking below the 149.00 support to set new two-month lows. Jibun Bank’s final Services PMI will only be published in the domestic calendar.
AUD/USD saw a decent bounce, although a convincing break of the 0.6500 barrier remained elusive. An interesting calendar in Australia will feature the third quarter GDP growth rate.
The resumption of geopolitical concerns in the Middle East pushed the WTI barrel beyond the $70.00 mark, or multi-day highs.
Gold prices posted modest gains and maintained their gradual recovery for another day, this time surpassing the $2,650 per troy ounce mark. Silver notably advanced to multi-day peaks north of the $31.00 per ounce mark amid the broad-based recovery in the commodities complex.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
