This is what you need to know to trade today thursday december 1:
The US dollar remains low on the first trading day of December, as markets position themselves on the possibility of a smaller rate hike from the Federal Reserve. The 10-year US Treasury yield is hovering near 3.6% after losing almost 4% on Wednesday and US stock index futures are trading in positive territory. Later in the session, the US Bureau of Economic Analysis will release data on the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, for October. The November ISM Manufacturing PMI report will also be on the US economic agenda.
US PCE Inflation Preview and ISM Manufacturing PMI: Seen Through the Eyes of the Fed
In his last appearance before the Fed enters the lockup period on Saturday, FOMC Chairman Jerome Powell said it would make sense to moderate the pace of interest rate hikes. Powell further added that rates must ultimately rise “somewhat more” than policymakers thought in September. Following these remarks, CME Group’s FedWatch tool shows markets pricing the probability of a 50 basis point Fed rate hike in December at nearly 80%, up from 66% on Tuesday.
Meanwhile, the Beijing authorities announced that they will allow people who have tested positive for Covid in a number of residential communities to self-quarantine at home. Hong Kong’s Hang Seng is up 1.5% on the day and the Shanghai Composite remains on track to close modestly higher, pointing to an improvement in market sentiment early on Thursday.
After falling to a new weekly low below 1.0300, the EUR/USD gained bullish momentum and ended up closing above 1.0400 on Wednesday, gaining over 100 points. The pair maintains its bullish momentum early Thursday and is trading near 1.0450.
The GBP/USD made a 180 degree turn from 1.1900 and posted strong daily gains on Thursday. The pair continues to rise and trades above 1.2100 in the European morning.
The USD/JPY it fell sharply on Wednesday and extended its decline into the early hours of Thursday. The pair fell to fresh 14-week lows at 135.83. In addition to the general weakness of the dollar, comments from Bank of Japan (BoJ) officials appear to be putting additional weight on the pair. Asahi Noguchi, a BoJ board member, said that depending on the data, the time to exit the easing policy could be brought forward.
Driven by the sharp decline in US bond yields, the price of Prayed went up on wednesday. XAU/USD maintains its bullish momentum and is trading at its highest level in three weeks above $1,780.
The Bitcoin benefited from risk flows and gained more than 4% on Thursday. BTC/USD was last seen consolidating its recent gains around $17,100. ethereum It is trading in a tight range just below $1,300 after rising more than 6% on Thursday.
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.
