The bullion pushed higher, boosted by the weakening
greenback and was trading 0.60% stronger during the US session, hovering at
around 1,245 USD, which are levels last seen in July this summer.
Earlier today, traders watched the US labor market data. The
non-farm payrolls slowed sharply in November and the US economy created only
155,000 new jobs, against expectations of 200,000, while the previous number
was revised lower to 237,000. The unemployment rate remained unchanged at 3.7%.
Moreover, wage growth stay at 3.1% year-on-year and ticked
higher from 0.1% to 0.
The USDJPY pair declined sharply on Thursday and was trading
0.80% weaker during the US session, hovering below 112.40.
US bond yields plummeted again on Thursday, which dragged
the USDJPY lower with them. The 10-year yield is now at 2.85% and the 30-year
trades at around 3.12%. Moreover, the short-term yield curve remains inverted, confirming
the risk-off sentiment.
Sentiment deteriorated on Tuesday as investors started to
question the benefits of the weekend trade truce between USA and China and
stocks fell, along with JPY cross. US bond yields also moved sharply lower,
while the short-term part of the yield curve is already inverted, implying a
possible recession over the next quarters.
The greenback was losing again, undermined by the falling
yields and the dollar index decline below the important uptrend line,
cancelling the current bullish view. The next target for the dollar index could
be at 95.
Monday was another positive day for global equities and US
indices were up 1%, while EU benchmarks surged more than 1% during the US
session. However, indices were down notably from overnight highs reached during
the Asian session as some profit taking hit the markets in the afternoon.
Equities soared across the globe on Monday as Trump and Xi
managed to calm the markets at their weekend meeting with a 90 days truce in
their trade conflict.
The EURUSD pair was 0.3% weaker during the US session on
Friday and was trading at around 1.1360 as traders sold the shared currency
after weaker than expected inflation numbers.
The euro zone’s CPI inflation slipped to 2.0% year-on-year in
November, down from 2.2% in October. This was broadly expected by economists,
but the core inflation gauge slowed as well to 1.0% from 1.1% previously, while
analysts had forecast this measure to stay unchanged at 1.1%.
Moreover, the unemployment rate also failed to meet
expectations and came out at 8.
The greenback was trying to erase yesterday’s losses and the
dollar index edged higher from the intraday low, despite not so positive
inflation data from the US.
The core PCE inflation index, which is the favorite way of
measuring inflation for the Fed, unexpectedly deteriorated to 1.8% in October,
down from 1.9% (revised lower from 2.0%) previously. The normal gauge stayed at
2.0% year-on-year. Slowing inflation can deter the Fed from raising rates,
along with other factors such as weakening economic momentum.
From other news, personal spending soared to 0.6% from 0.
The USDJPY pair ticked higher on Wednesday and was trading
near the 114 level during the US session as rising stocks and rising yields
spurred demand for the USDJPY pair.
Traders paid attention to today’s US GDP preliminary data
for the third quarter, which came out at 3.5% and sent a strong message, that
the US economy is still outpacing other G7 countries. However, most economists expect
the economic activity to slow down over the next quarters as Trump’s tax cuts
positive influence on the GDP growth will fade out. Moreover, the GDP price
index remained at 1.7% on the yearly basis.
The single currency failed to hold intraday gains and
dropped 30-40 from daily highs to trade relatively unchanged on the day during
the US session, hovering near 1.1350.
Earlier in the day, the German IFO surveys came out on the
negative side when the business climate survey decelerated to 102.0 in November
from 102.9 in October and the expectations (the most important subindex) slowed
from 99.7 to 98.7. Both numbers came well below analysts’ forecasts. The
current assessment gauge fell as well and printed 105.4 from 106.1 in the
It was a volatile day for the Canadian dollar and the Loonie
was down 0.5% during the London session, with the USDCAD pair trading at around
The Canadian inflation accelerated further to 2.4% year on
year, while core inflation also ticked higher to 1.6% from 1.5% previously.
Moreover, retail sales advanced a bit from 0.0% to 0.2%, whilst the ex
transportation gauge moved higher to 0.1% from -0.4% previously. Positive data
failed to boost the Canadian dollar and it dropped, as previously mentioned.
Stocks worldwide plunged on Tuesday and EU indices were
trading at this year’s lows, while the US benchmarks dropped closer to October’
lows. The DAX index was down 1.2% during the London session, while the SP500
benchmark lost 1.5% shortly after the US opening bell and the Nasdaq was down
another 2% to trade at 7-month lows.
Sentiment worsened further on Tuesday as FAANG stocks
continued their demise, which dragged the entire stock market down.
From the macro data point of view, US building permits rose
slightly from 1.241 million annually to 1.