Euro remains in the range of November 30
On Wednesday, December 1, by the end of the day, the euro fell by 0.16% to 1.1320. The euro / dollar pair was trading in the range of 1.1300-1.1360. Before the close of the trading session in the United States, the price retreated to 1.1311. The dollar received support from US statistics.
ISM's Manufacturing PMI was stronger than expected, while employment and new orders rose. The ADP employment index for November bolstered expectations that official labor market data on Friday should be higher than forecast.
Fed Chairman Jerome Powell, speaking before Congress, reiterated that the US central bank is likely to accelerate the reduction in its asset purchases. Risky assets (stock market, oil, Australian, New Zealander) dropped in price on the news of the first case of infection with a new strain of coronavirus in the United States.
Scheduled statistics (GMT +3):
- At 3:00 the Eurozone is to publish the PPI and the unemployment rate for October.
- At 15:30 in the US there are data on the number of initial jobless claims 19-26 for November.
- At 4:30 pm, Atlanta Fed President Rafael Bostic will deliver a speech.
- Finance Minister Janet Yellen will deliver a speech at 17:00.
- FOMC member Randal Quarles will deliver a speech at 7:00 pm.
- At 19:30, the President of the FRB of Richmond Thomas Barkin, the President of the FRB of Atlanta Rafael Bostic, and the President of the FRB of San Francisco Mary Daly will speak.
Current situation:
Major currencies are showing mixed performance. The market is shaking due to the uncertain situation with Omicron. The first Omicron case in the United States is pushing the administration of President Joe Biden to new restrictive measures. Investors fear that any travel / trade restrictions could quickly reverse any progress made in supply chains.
British Prime Minister Boris Johnson said that the Omicron strain can be transmitted between vaccinated people. In this regard, England will also introduce covid restrictions.
Today, the focus of attention, in addition to the virus, will be weekly claims for unemployment benefits and many speeches by representatives of the Fed and the ECB. US nonfarm payrolls (NFP) data are due on Friday.
Technical analysis:
The euro / dollar pair is trading at 1.1322. The technical picture for the euro is favorable. Even if the pressure on risky assets increases, the euro will receive support as a funding currency. Although market participants expect a good NFP report, buyers have time to test the strength of the 1.1386 level. If the activity of buyers remains low on Thursday, then we will have to wait for an increase in volatility on Friday on the data on the labor market at 16:30 Moscow time. Support is the level of 1.1289 (45 degrees).
Summary:
the euro closed slightly in the red on Wednesday. The currency came under pressure after the release of American statistics. The price remains trading within the November 30 range. Market participants begin to prepare for the publication of the Non-Farm Payrolls report. Today, the focus of attention, in addition to the virus, will be weekly claims for unemployment benefits and many speeches by representatives of the Fed and the ECB.