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European Forex news roundup: The dollar remains stable ahead of the US payrolls.

  • 03 December, 2021
  • 5:30 pm EET

European Forex news roundup: The dollar remains stable ahead of the US payrolls.

Forex market news for the European trade session on December 3, 2021

For the most part, it was a calm session, with major currencies doing little save for a notable decrease for both the Australian and New Zealand currencies, which was due to a technical decline rather than anything else.

The dollar remained mostly stable, with EUR/USD hovering around 1.1290-00 for the most part, while USD/JPY edged up from 113.20 to 113.40 during the afternoon.

The general risk mood is more cautious, as US futures rebounded from an early drop in Asia amid omicron fears in the US to remain relatively flat throughout.

European indices likewise showed little composure, while Treasury yields were seen wandering as investors awaited the US non-farm payrolls later in the day.

Returning to the aussie and kiwi, both currencies are somewhat weaker, threatening a firmer breach below their August lows against the dollar.

Other than that, oil is maintaining a solid bounce following the OPEC+ decision yesterday, but omicron concerns are still putting a lid on any substantial positive drive for the time being.

Virus news will remain important, as will the US employment report later in the day, which will be viewed as a litmus test for all of the Fed’s hawkishness in the previous week.

With a slight 0.1 % rise, the EUR is leading the major currencies versus the dollar, pushing EUR/USD back above 1.13. Christine Lagarde, President of the European Central Bank (ECB), stated on Friday that “when the requirements of the forward guidance are met, we will not hesitate to act.” According to Scotiabank experts, this position may prevent a EUR/USD decline to 1.10.

“Lagarde stated that the ECB ‘will not hesitate to act’ if the conditions of its forward guidance (sustained expectations of inflation above 2%) are met, but she also stated that they still expect inflation to moderate from current elevated levels by 2022, making a hike next year extremely unlikely.” She also stated that the PEPP will be terminated in March 2022. Her remarks indicate a greater willingness to act from the ECB, which may lend a hand to the EUR in order to prevent a significant decline below 1.10.”

 

Markets News :

  • CHF leads, AUD lags on the day
  • European equities mildly higher; S&P 500 futures flat
  • US 10-year yields down 1.8 bps to 1.431%
  • Gold up 0.2% to $1,772.34
  • WTI up 2.8% to $68.34
  • Bitcoin up 0.1% to $56,969

 

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