December 04, 2024 at 12:39PM
Headlines:
USD/JPY continues run higher to touch 151.00 on the day
USDJPY Technical Analysis – The chances for a rate hike dwindle
Heads up: French government set to face no confidence vote today
ECB’s Vujčić: I don’t think December decision will be that difficult
ECB’s Rehn: I see policy easing continuing in the coming months
BOE governor Bailey expects four rate cuts next year if economic outlook stays the course
Eurozone October PPI +0.4% vs +0.4% m/m expected
Eurozone November final services PMI 49.5 vs 49.2 prelim
UK September final services PMI 50.8 vs 50.0 prelim
US MBA mortgage applications w.e. 29 November +2.8% vs +6.3% prior
OECD raises global growth outlook for next year but warns of protectionism risk
South Korea opposition parties submit impeachment bill against President Yoon
Markets:
USD leads, AUD lags on the day
European equities higher; S&P 500 futures up 0.3%
US 10-year yields up 4 bps to 4.261%
Gold flat at $2,644.00
WTI crude down 0.2% to $69.82
Bitcoin flat at $96,039
There weren’t much of any material headlines in European morning trade today, though there were some decent moves during the session.
The dollar kept steadier in general but USD/JPY in particular raced higher in a push from 150.00 to hold just above 151.00 now, up 1% on the day. The move is helped by a technical rebound this week, coming off its 100-day moving average. But it is also in part by a bounce in Treasury yields on the week as well, with 10-year yields now back to 4.26%.
Besides that, the dollar is keeping lightly changed against the rest of the major currencies bloc except the antipodeans. The aussie and kiwi were both already weighed down in Asia, as the former suffered from a softer Q3 GDP report.
AUD/USD was seen down to 0.6410 earlier in the day before a slight rebound to 0.6450 at the start of European trading. But sellers kept the downside momentum going as price is now down over 1% at the lows of 0.6406. I want to say that the pressure on the Chinese yuan from yesterday also isn’t a helpful factor at least.
The euro will be a potential currency to watch before the end of the day though, as the French government is set to face up against a no confidence vote. So, do keep an eye out for that.
In other markets, stocks continue to shine in the new month as European indices are up across the board again. The DAX is building on its break above 20,000 as it continues to scale to fresh record highs on the week. Meanwhile, S&P 500 futures are also up to record highs in a push to 6,080 – up 0.3% on the day. Bulls for the win.
As for commodities, things are looking calmer as broader market sentiment continues to wait on US labour market data this week for more clues. Up next, we’ll have the ADP employment roulette.
This article was written by Justin Low at www.forexlive.com.