Dollar Continues to Fall Ahead of NFP
The US index fell deeper towards the 90 handle yesterday as it closed 0.42% lower.
Whilst economists are expecting a fifth straight monthly increase in jobs, the figures are likely to miss forecasts, with the economy still having millions of people out of work.
The dollar is under extreme pressure as appetite for risk has increased as the world gets ready for a Covid vaccine.
A lack of confidence in the greenback was heightened over the upcoming Biden victory leading to increased deficit spending.
Euro Pushes for 1.22
The euro kept the rally alive by closing 0.24% higher on Thursday.
Despite the eurozone business activity contracting last month, as governments across the bloc reimposed strict lockdowns to quell the second wave of Covid-19 infections, optimism remained in hopes for a vaccine.
In addition, retail sales rebounded more than expected in October, which added fuel to the fire in the hopes of further increases to the currency pair.
Brexit Hopes and Covid Vaccine Boost Pound
The pound continued its push for the 1.35 ceiling yesterday as it closed 0.70% higher.
As Brexit talks continued to languish, Britain and the EU will resume talks on a trade deal today, despite a senior UK government source saying the prospect of a breakthrough is receding.
Political sources state that the EU team was bringing new elements into the negotiation at the 11th hour.
Is a no-deal looking more likely as we approach the end of year deadline?
Nasdaq Closes at Record High
US stocks closed indecisively yesterday amid falling jobless claims and new hopes for a stimulus deal.
However, it was the Nasdaq that was the front runner, as it closed at all-time highs.
Boeing led the Dow 0.3% higher as shares surged on optimism around the return of its 737 Max jet.
We now await further headlines on the $908 billion stimuli as House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer backed the measure.
Gold Claws its Way Back
Gold continued gaining traction for the third consecutive session on Thursday, closing 0.56% up.
Hopes for more US fiscal stimulus undermined the greenback and benefitted the yellow metal.
Bull traders seemed unaffected by the latest optimism over the first COVID-19 vaccine, as gold increased by over $10.
OPEC Boosts Oil
Oil was back above the $45 handle on Thursday as it closed 1.67% higher.
OPEC and its oil-producing allies agreed to increase production in January, however, the rest of 2021 remains in limbo.
Additional monthly meeting will ensue to determine the levels of oil production going forward.
