ForexLive European FX news wrap: Dollar steady ahead of payrolls

Forex news from the European trading session - 3 December 2021

Headlines:

Markets:

• 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

It was a quiet session for the most part as major currencies didn't do all too much except a noticeable drop for both the aussie and kiwi, owing more to a technical decline more than anything else.

The dollar held largely steady with EUR/USD keeping around 1.1290-00 levels for the most part while USD/JPY inched a little higher from 113.20 to 113.40 during the session.

The overall risk mood remains more tentative as US futures recovered from an early dip in Asia amid omicron fears in the US to keep around flat levels throughout.

European indices also showed little poise while Treasury yields were seen meandering as investors are waiting with bated breath on the US non-farm payrolls later.

Going back to the moves in the aussie and kiwi, both currencies are modestly lower as they threaten a firmer break below their August lows against the dollar.

I highlighted more on that earlier in the day here.

Elsewhere, oil is keeping a decent bounce after the OPEC+ decision yesterday but omicron worries are still putting a lid on any significant optimistic push for now.

Virus headlines will continue to be key alongside the US jobs report later, which will be seen as a litmus test to all the Fed's hawkishness in the past week.

December 04, 2021 at 12:38AM
Justin Low
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