Australian Dollar (AUD) Pressured as Covid Cases Rise
The Australian Dollar (AUD) tumbled on Thursday despite retail and trade balance data meeting expectations.
Covid infections in Victoria rose to 1,400, their highest level in around a month – and Omicron is already known to be circulating, increasing the risk of further lockdowns despite the state’s high vaccination rate.
Looking ahead, Australia’s finalised services PMI might lend support to the ‘Aussie’ today if it confirms an increase in service-sector activity through November.
Pound (GBP) Trends Up on Vaccine Tailwinds
The Pound (GBP) climbed against the majority of its peers yesterday notwithstanding a lack of UK data.
Sterling instead found support on news that pharmaceuticals group GlaxoSmithKline (GSK) were confident of their vaccine’s efficacy against the Covid Omicron variant.
The UK’s finalised services PMI might subdue the currency today if it confirms a decrease in service-sector activity as expected.
Euro (EUR) Enjoys Tailwinds as USD Slides
The Euro (EUR) benefitted on Thursday from an overall upbeat market mood, and the subsequent slide in the US Dollar (USD).
Also supporting the single currency, Eurozone unemployment fell slightly in October, from 7.4% to 7.3% – the lowest level since April 2020.
Into today, Eurozone retail sales are likely to drive movement in Euro exchange rates – if the data improves on October’s figures, EUR may enjoy further tailwinds.
US Dollar (USD) Slumps despite Better-Than-Expected Jobless Claims
The US Dollar fell yesterday as initial jobless claims missed the rise expected, but still climbed on last week’s figures.
Despite news of effective vaccinations, uncertainty regarding the Covid variant remains elevated: yet USD failed to accrue risk-off support as other currencies strengthened in its place.
Looking ahead, non-farm payrolls are expected to print strongly, potentially lending support to the US Dollar – a fall in the ISM non-manufacturing PMI tomorrow may dent USD prospects, however.
Canadian Dollar (CAD) Slumps Overall as OPEC+ Agrees to Increase Output
The Canadian Dollar (CAD) came under pressure on Thursday, despite some economists predicting that the Bank of Canada (BoC) will act before America’s Federal Reserve to tighten monetary policy.
News that the Organisation of Petroleum Exporting Countries and its allies (OPEC+) plan to go ahead with increasing oil supplies next year weakened oil prices and dampened CAD sentiment.
Canadian employment data will probably influence ‘Loonie’ trading today – falling unemployment in November is set to buoy the currency.
New Zealand Dollar (NZD) Firms as Risk Sentiment Strengthens
The New Zealand Dollar (NZD) was able to climb against several peers yesterday, given risk-on tailwinds over vaccine optimism. A lack of data capped gains, while AUD weakness exerted slight downside.
Data Releases
Dec 3rd 08:00 AUD Markit Services PMI Final (Nov) 55
Dec 3rd 18:30 EUR ECB Lagarde Speech N/A
Dec 3rd 18:55 EUR German Markit Services PMI Final (Nov) 53.4
Dec 3rd 19:00 EUR Markit Services PMI Final (Nov) 56.6
Dec 3rd 19:30 GBP Markit/CIPS Services PMI Final (Nov) 58.6
Dec 3rd 20:00 EUR Retail Sales (Oct) 0.2%
Dec 3rd 21:00 GBP BoE Saunders Speech N/A
Dec 3rd 23:30 CAD Unemployment Rate (Nov) 6.6%
Dec 3rd 23:30 CAD Employment Change (Nov) 35K
Dec 3rd 23:30 USD Non-Farm Payrolls (Nov) 550K
Dec 3rd 23:30 USD Unemployment Rate (Nov) 4.5%
Dec 4th 01:00 USD ISM Non-Manufacturing PMI (Nov) 65
Dec 4th 01:00 USD Factory Orders (Nov) 0.5%