The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
News to trade on December 4
- During the Asian session, the US 10-year Treasury bond yield fell to its three-month lows. Analysts mention the slowdown of inflation as the main reason for this slump.
As a result, USD/JPY fell sharply below the central pivot at 113.445 and 50-day MA, testing the ground at the 112.860 support.
The speech by the Federal Open Market committee member Williams at 17:00 MT time can support the US Dollar. If his speech contains hawkish comments, the pair can stick above the 112.860 level.
- EUR/USD keeps appreciating against the weak US Dollar. Today, the Italian Prime Minister Giuseppe Conte will present the new budget proposal to the EU. For now, the anticipated target is 2% (vs. previous 2.4%). However, the actual target could be even lower. If the new deficit target satisfies the market, the EUR will stick above the resistance at 1.1391. The next resistance lies at 1.1432 (50-day ma). If the USD is supported by the FOMC member’s speech, EUR/USD will fall towards the support at 1.1329.
- Today, the general advocate for the European Court of Justice published an opinion in which he said the UK could revoke Article 50. It provides hope for British supporters to stay in the European Union to reverse Brexit if the withdrawal agreement by the British Prime Minister Teresa May is rejected by Parliament on December 11. At the time of writing, GBP/USD has been rising towards the resistance at 1.2833. In case of more Brexit uncertainties, the pair will stick below the 1.2778 level.
- As the USD keeps sliding with the 10-year Treasury bond yield at its three-month lows, it boosts the price for gold. Currently, the price for the yellow metal is testing the resistance at $1,238. If this level is broken, the next resistance lies at $1,248. If bulls cannot hold this level, the support for gold lies at $1,230.
- The latest news from OPEC contained information about a planned output cut of at least 1.3 million barrels. Brent has already tested the resistance at $63.09 on the news. Further comments about output cut will help the crude to stick above $63.09. If the news on the increased output appears, the price will fall towards the support at $60.88.
- As for WTI, the anticipation of the output cut will help its price to break the resistance at $53.93 and rise towards the next resistance at $55.32. If bears take over, the support for it lies at $52.21.
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The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…