US Dollar

US Dollar Extends Losses in Risk-On Trade

Pound News: Sterling Gains on Brexit Hopes

The Pound strengthened today on Brexit optimism to recover some of yesterday’s losses as Ireland’s Foreign Minister Simon Coveney and the UK’s Education Secretary Gavin Williamson appeared hopeful for a UK-EU trade agreement.

Sterling found further support from news that the UK services PMI had printed even better than projected, boosting hopes that Britain’s economic activity was resilient amid its second coronavirus lockdown.

UK-EU Brexit negotiations will continue to be the biggest focus for the Pound, offsetting any influence the UK construction PMI may have had.

Euro News: Eurozone Stimulus Package Jitters Weigh on Euro Strength

The Euro is a little weaker today as concerns rise that some EU member states are opposed to coronavirus rescue package measures.

This is weighing on the Euro slightly, but the shared currency is strong overall as it benefits from weakness in USD and strong Eurozone data published this week.

German factory orders data will round off the week tomorrow. If the data disappoints though, investors may be more hesitant to buy the Euro.

US Dollar News: Investors Continue to Sell Safe Havens

The safe-haven US Dollar remains weak today, which is boosting demand for riskier US Dollar rivals. Investors are optimistic about coronavirus vaccine news and US fiscal policy speculation is boosting risk-sentiment as well.

Tomorrow’s US Non-Farm Payroll report will be one of this week’s most influential datasets. It will give markets a much better idea of how the US economy is performing as Covid-19 surges across the US.

Canadian Dollar News: CAD Remains Resilient on Oil Price Hopes

While there was a hiccup in OPEC+ oil producer agreements earlier in the week, reports that OPEC+ could continue production caps into 2021 are keeping oil prices buoyed.

This, combined with coronavirus vaccine hopes, are keeping the Canadian Dollar fairly buoyant as well.

Canada’s latest trade and job market data will be published tomorrow. These and oil price developments will drive Canadian Dollar movement towards the end of the week.

Australian Dollar News: Strong Australian Outlook Limits GBP/AUD Gains

The Pound has been attempting to rebound against the Australian Dollar this week. However, the pair’s gains are limited as risk-sentiment and Australia’s economic outlook continue to support AUD.

Today’s Australian trade report showed stronger exports than expected, which further limited GBP/AUD gains.

Australia’s October retail sales report will be published tomorrow. It will give ‘Aussie’ investors a better idea of how Australia’s consumer activity has weathered the coronavirus second wave.

Upcoming Data

Friday, 4th December

00:30    Australian Retail Sales

07:00    German Factory Orders

08:30    Eurozone Construction PMI

09:30    UK Construction PMI

13:30    Canadian Trade Balance

13:30    Canadian Job Market Report

13:30    US Non-Farm Payroll Report

15:00    US Factory Orders