News

Dollar Holds Steady Ahead of Jobs Data

USD

The dollar index, which measures the greenback against a basket of major currencies, settled higher for the third consecutive day closing at 97.42. The solid economic data released earlier this week raised the dollar demand. Market participants are looking forward to the December jobs data that will be published later on the day. The EURUSD    drifted lower to $1.1092, and the GBPUSD dipped to $1.3010. Moreover, the dollar was stronger against safe-haven currencies such as the Japanese Yen and Swiss Franc as geopolitical tensions faded, where the USDJPY logged a two-week high of 109.60, and the USDCHF rallied to 0.9748.

Equities

Major US stock-index futures extended rally posting fresh record highs amid enhanced risk sentiment. The fading geopolitical tensions and the preparations for signing the phase one of the US-Sino trade deal boosted investors' risk appetite. The Dow Jones Industrial Average futures rose to 29022, the S&P500 futures advanced to 3282, and Nasdaq futures rallied to 9043.

Metals

Gold prices traded sideways awaiting fresh fundamental drivers. Market participants are looking forward to the US jobs report, and how will the Ukraine plane crash in Tehran develop. The price of a gold ounce found support near $1540, and resistance near $1560. The price of a silver ounce remained below $18, while palladium hovered above $2100.

Oil

Oil prices extended losses as geopolitical concerns eased. The West Texas Intermediate crude futures declined to $58.65, and Brent futures tumbled to $64.54. However, oil benchmarks could earn support if the Ukrainian plane incident revives geopolitical tensions.

Major Economic Events

GMT Country Event Expectation Previous

13:30

US

Nonfarm Payrolls (Dec) 

164

266

13:30

US

Unemployment Rate (Dec)

3.5%

3.5%

13:30

US

Average Hourly Earnings (YoY) (Dec)

3.1%

3.1%

13:30

CA

Employment Change (Dec)

25.0

-71.2

13:30

CA

Unemployment Rate (Dec)

5.8%

5.9%

 
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