This is what you need to know to trade today monday december 5:
The DXY Dollar Index, which lost almost 1.5% last week, is trading at its lowest level since late June, below 104.30 at the start of the European session. S&P Global will release final November composite PMI surveys for Germany, the euro zone, the United Kingdom and the United States on Monday. Sentix investor confidence and retail sales data will also feature on the European economic calendar. Finally, market participants will closely monitor the US ISM Services PMI in the second half of the day.
On Sunday, Several cities in China decided to ease the restrictions against the coronavirus, which contributed to an improvement in risk sentiment during the Asian session. Urumqi, the capital of the Xinjiang region, said shopping malls, restaurants and markets will open from Monday. Zhengzhou residents will not have to show their covid test results to take public transport, taxis and visit public areas. The authorities also announced that Nanning residents will not have to present a negative covid test result to take the subway. Although data from China revealed that the Caixin services PMI slipped At 46.7 in November, up from 48.4 in October, Asian stock indices performed well on Monday. The Shanghai Composite gained 1.5% and Hong Kong’s Hang Seng rose more than 3%.
However, US stock index futures are trading broadly unchanged and the 10-year US Treasury yield remains in positive territory, slightly above 3.5%.
Meanwhile, after their weekend meeting, the OPEC and its allied producers (OPEC+) have agreed to maintain their current oil production targets despite the recent decline in energy prices. Crude oil prices did not show an immediate reaction to this decision and West Texas Intermediate is now trading in a tight range around $80 a barrel.
The EUR/USD it continued to rise towards 1.0600 and hit its highest level in over five months early on Monday. The member of the council of the European Central Bank (ECB), François Villeroy de Galhau said on Sunday that he is in favor of a 50 basis point rate hike in December, but this comment does not seem to have a significant impact on the Euro’s performance against its rivals.
After closing for the fourth consecutive week in positive territory, the GBP/USD maintained its bullish momentum early on Monday and rose above 1.2300 for the first time since late June. Although the pair was slightly lower early in the European morning, it is still trading in positive territory above 1.2300.
The USD/JPY it lost almost 500 pips last week and started the new week calmly. Data from Japan showed that the Jibun Bank Services PMI came in at 50.3 in November, slightly above the flash estimate of 50. USD/JPY largely ignored this data and is now trading sideways above 134.50.
The AUD/USD gained ground during the Asian session and rose above 0.6800. Early on Tuesday, the Reserve Bank of Australia will announce its monetary policy decision.
The price of Prayed it dipped on Friday after the upbeat US November jobs report, but managed to break above $1,800 early Monday. However, with the US 10-year bond yield holding steady, XAU/USD seems to have a hard time gaining any bullish momentum for now.
The Bitcoin It gained traction at the start of the new week and is now at its highest level in three weeks at around $17,300. The ethereum it is up more than 1% on Monday, trading near $1,300.
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.
