What you need to know on Thursday, December 2:
Fears cooled off on Wednesday, resulting in the major pairs holding on to familiar levels. The dollar ended the day on a mixed basis, firmer against its commodity rivals but lower against other safe-haven currencies.
The cautious optimism came from the World Health Organization, as it said current vaccines could still offer protection against the new variant of the Omicron coronavirus, preventing serious illness. Additionally, the WHO reported that so far, the new strain appears to be causing milder symptoms and illnesses.
The Chairman of the US Federal Reserve, Jerome Powell, testified again before a different Senate Committee and repeated that inflation has spread more widely and that the risk of persistent inflation has increased. However, he also said that while they need to remove the word “transitory”, he still believes inflation will drop “significantly” in the second half of 2022.
Asian and European indices closed higher, while Wall Street opened on a positive note but trimmed most of its intraday gains before the close. Meanwhile, US Treasury yields rose modestly, with the 10-year yield reaching the 1.44% level at the time.
EUR / USD is trading around 1.1320, while GBP / USD is at 1.3280, both at risk of falling further. AUD / USD is trading around 0.7110, while USD / CAD is pushing daily highs in the 1.2830 price zone.
Gold remains under pressure and is currently trading at $ 1,780 a troy ounce. Crude oil prices fell, with the WTI now trading around $ 65.75 a barrel.
The focus now shifts to US employment figures ahead of the nonfarm payroll report to be released next Friday. The country is expected to have added 550,000 new jobs in November, a fairly healthy reading in terms of monetary policy.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.