Here is what you need to know about the important news between December 4th, 2023, and December 8th, 2023, where we take a look at the economic data, market news and headlines likely to have the biggest impact on the market prices this week and beyond, as well as the US Dollar, and other key correlated assets.
U.S. dollar index
The index regains some buying interest following Friday’s bearish performance, managing to rebound to the 103.30 zone after briefly testing the 103.00 area earlier in the Asian trading hours on Monday.
Meanwhile, speculation continues to mount regarding the prospects of interest rate reductions by the Federal Reserve at some point in the spring of 2024, despite divergent views on this matter among certain members of the Fed’s policymaking bodies.
Some support for the greenback, however, still emerges the resilience of the US economy as well as a persistent hawkish narrative from some Fed rate setters.
In the US docket, Final S&P Global Services PMI, ISM Services PMI will take centre stage along with the Nonfarm Payrolls and Unemployment Rate.
Gold
Gold price is consolidating gains below $2,100, having reversed sharply from the all-time-high of $2,144 early Monday. Gold price rocketed amid increased bets of a March Fed rate cut and fresh geopolitical concerns between Yemeni Houthis and the US, as well as Hamas and Israel.
The latest retracement could gather pace if the intraday low of $2,072 caves in. The next strong support is seen at the $2,050 psychological level, below which floors could reopen for a test of the $2,000 threshold.
Looking ahead, it remains to be seen if Gold price finds a fresh impetus to resume the upside, as the US Dollar could draw support from the Middle East geopolitical tensions. Although dovish Fed expectations are likely to dominate risk sentiment and the US Dollar valuations, as traders brace for the key US employment data due later this week.
Oil.
Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around $73.70 so far on Monday. WTI prices continue to decline as a result of the OPEC+ decision, as well as uncertainties about global fuel demand growth.
Furthermore, the mixed economic data from China might exert some selling pressure on WTI prices. Last week, the Chinese Caixin Manufacturing PMI came in better than expected, but both the NBS Manufacturing and Services PMI were weaker than estimated. Concern about the recovery of China’s economy weighs on the black gold, as China is the world’s largest gold producer and consumer.
Moving on, oil traders will keep an eye on the developments surrounding geopolitical tensions in the Middle East. Later this week, the US ISM Services PMI will be due on Tuesday and the Employment data will be released on Friday, including Nonfarm Payrolls, Unemployment Rate, and Average Hourly Earnings.
Economic calendar most important releases – All times are GMT
Tuesday, December 5, 2023
03:30 AUD RBA Interest Rate Decision (Dec)
09:30 GBP Composite PMI (Nov)
09:30 GBP Services PMI (Nov)
14:45 USD Services PMI (Nov)
15:00 USD ISM Non-Manufacturing PMI (Nov)
15:00 USD JOLTs Job Openings (Oct)
Wednesday, December 6, 2023
09:30 GBP Construction PMI (Nov)
11:00 GBP BoE Gov Bailey Speaks
13:15 USD ADP Nonfarm Employment Change (Nov)
15:00 CAD BoC Interest Rate Decision
15:30 USD Crude Oil Inventories
Thursday, December 7, 2023
07:00 GBP Halifax House Price Index (YoY) (Nov)
13:30 USD Initial Jobless Claims
23:50 JPY GDP (QoQ) (Q3)
Friday, December 8, 2023
13:30 USD Average Hourly Earnings (MoM) (Nov)
13:30 USD Nonfarm Payrolls (Nov)
13:30 USD Unemployment Rate (Nov)
Thanks for reading! Have a great week!
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