The dollar fell sharply as markets remained up ahead of key US employment data, while a strengthening yen Bank of Japan President Kazuo Ueda gave further hints of a possible reversal of the central bank’s extremely dovish stance.
The US dollar index, which tracks the greenback against six other currencies, was down 0.65% at 103.486.
Initial claims for state unemployment benefits rose by 1,000 to a seasonally adjusted 220,000 in the week ended Dec. 2, the Labor Department said on Thursday, according to data released yesterday. Economists polled by Reuters had forecast 222,000 claims last week.
On Thursday, crude oil prices rebounded somewhat from the previous day’s six-month lows, but investors remained concerned about weaker US and Chinese demand.
Gold rebounded from intraday lows as the dollar weakened on US nonfarm payrolls data that could shed light on Federal Reserve policy. Yields on the country’s 10-year bond were near three-month lows.
Copper halted recent declines on strong Chinese export data and a weaker dollar, although other factors limited gains.
MCX gold futures rose 0.06% to 62841. Silver fell 0.65% to 75475. Copper up 0.97% to 715.25. Crude oil fell to 5814, down 0.10%. Natural gas up 0.09% to 215.30.
Economic data and events scheduled: Will non-farm payrolls decide the fate of the market today?
Japan
5.00am –
Average Cash Earnings y/y. Data is foreseen at 1.0% from previous 0.6%.
Household Spending y/y. Data is foreseen at -2.9% from previous -2.8%.
5.20am-
Bank Lending y/y. Data is foreseen at 2.8% from previous 2.8%.
Current Account. Data is foreseen at 1.85T from previous 2.01T.
Final GDP Price Index y/y. Data is foreseen at 5.1% from previous 5.1%.
Final GDP q/q. Data is foreseen at -0.5% from previous -0.5%.
At 10.30pm- Economy Watchers Sentiment. Data is foreseen at 49.0 from previous 49.5.
All above data could have a volatile impact on the Yen.
China
Tentative – New Loans. Foreseen at 1250B from previous 738B.
Tentative – M2 Money Supply y/y. foreseen at 10.1% from previous 10.3%.
Both data could have a negative impact on the Yuan.
Above data could have a negative impact on the Yuan.
Eurozone
At 12.30pm- German Final CPI m/m. Data is foreseen at -0.4%. Previous was at -0.4%.
Revised GDP q/q. Data is foreseen at -0.1% from previous -0.1%.
All day – Eurogroup Meetings
Above data could have a volatile impact on the Eur.
UK
At 3.00pm – Consumer Inflation Expectations. Previous was at 3.6%.
Above data could have a Neutral impact on the pound.
Canada
At 7.00pm- Capacity Utilization Rate. Data is foreseen at 81.4% from previous 81.4%..
Above data could have a volatile impact on the Canadian dollar.
U.S.–
At 7.00pm-
Average Hourly Earnings m/m. Data is foreseen at 0.3% from previous 0.2%.
Non-Farm Employment Change. Data is foreseen at 185k from previous 150k.
Unemployment Rate. Data is foreseen at 3.9% from previous 3.9 %.
At 8.30pm- Prelim UoM Consumer Sentiment. Data is foreseen at 62 from previous 61.3.t
Above data could have a volatile impact on the dollar.
Commodity Samachar
Learn and Trade with Ease
Also Read : Gold holds its advantage amid dovish bets on Fed, will it continue? , China’s Trade balance, weekly US job claims will be important data
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