What you need to know on Friday, December 3:
The dollar picked up some momentum in the last trading session of the day on Thursday, helped by upbeat local data and higher yields on US government bonds as concerns were temporarily shelved. Wall Street posted substantial gains, although the major indices remain bearish on a weekly basis.
Regarding the yields of government bonds, the 10-year Treasury bond reached a maximum of 1,466%, remaining close to the end of the session. US indices posted substantial gains, with the Dow Jones Industrial Average climbing nearly 700 points and the S & P500 adding about 2% at the moment.
Different officials of the Federal Reserve of the United States endorsed the recent words of President Jerome Powell. San Francisco Federal Reserve Bank President Mary Daly said the Fed may need to reduce asset purchases faster than anticipated, while Richmond President Thomas Barkin said inflation has risen faster than expected due to the virus, vaccines and fiscal support.
European Central Bank lawmaker Fabio Panetta said inflation and the new pandemic wave are jeopardizing the Union’s recovery at an early stage, although earlier this week he noted that there is no need to tighten monetary policy to control inflation, driven by temporary factors.
EUR / USD briefly crossed the 1.1300 level, hovering around it in the direction of the Asian open. The British pound remained weak, with the GBP / USD stagnant around 1.1330. Commodity-linked currencies fell, with AUD / USD trading below 0.7100 and USD / CAD above 1.2800.
Gold fell to a new one-month low of $ 1,761.87, having rebounded modestly before the close. Crude oil prices fell to fresh multi-month lows but recovered, and WTI is currently trading at $ 66.10 a barrel.
The United States will release the non-farm payroll report on Friday. The country is expected to have added 550,000 new jobs in November, while the unemployment rate is forecast to contract to 4.5% from 4.6%. The country added 531,000 jobs in October, bringing the total number of jobs to 148.3 million, leaving a deficit of 4.2 million compared to pre-pandemic levels.
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