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Market News

Dollar Index Extends Losses, Jobs Report Eyed

December 06, 2019

 

USD

The dollar index, which measures the greenback against a basket of major currencies, finished lower for the fifth consecutive day closing at 97.39 amid growing concerns over the US economic outlook. The recently released economic data were a bit disappointing, supporting the chances of further monetary policy easing by the Federal Reserve during the fourth quarter of 2020. Market participants looking forward to the US jobs report having an insight into the latest development in the Labor market. On the other hand, the renewed uncertainty on trade talks between China and the United States kept markets fragile. The dollar was among the weakest currencies across the board where the USDJPY dropped to 108.64, the GBPUSD rallied to a fresh seven-month high of $1.3162, and the EURUSD drifted higher to $1.1108 but failed to break above this week's high.

Indices

Major US stock index futures traded in a tight range awaiting fresh clarifications on the status of trade talks between China and the United States as treasury secretary Steven Mnuchin stressed yesterday that the trade talks remain on the right to track but aren't bound to a specific deadline. The Dow Jones Industrial Average futures rose to 27768, the S&P500 futures advanced to 3125, and NASDAQ futures rallied to 8345. The US Jobs report could be among the key drivers of the stock market today.

Metals

Gold prices drifted lower as US Treasury yields recovered ahead of the US jobs report. The price of a gold ounce tested a one-month high on Wednesday, driven by the negative sentiment in the stock market arising from the tension between China and the United States. However, the comments of US Treasury Secretary Steven Mnuchin helped to restore investors' risk appetite. The price of a gold ounce plunged to $1472, the price of a silver ounce declined to $18.74, while palladium logged a fresh record high of $1877.

Oil

Oil prices hovered near a two-and-a-half-month high ahead of OPEC+ meeting today. The increased expectations of deeper supply cuts by oil-producing countries in the coming period to offset the global economic slowdown and the effect of trade protectionism, lifted prices. The West Texas Intermediate crude futures inched higher to $59.10, and Brent futures surged to $63.89.

Dollar Index Extends Losses, Jobs Report Eyed

Major Economic Events

GMT
Country
Event
Expectation
Previous
13:30
US
Nonfarm Payrolls (Nov)
186
128
13:30
US
Average Hourly Earnings (MoM) (Nov)
0.3%
0.2%
13:30
US
Unemployment Rate (Nov)
3.6%
3.6%
13:30
CA
Employment Change (Nov)
10.0
-1.8
13:30
CA
Unemployment Rate (Nov)
5.5%
5.5%
15:00
US
Michigan Consumer Expectations (Dec)
88.0
87.3
All-Day
OPEC+

Disclaimer

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM . Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.