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Dollar reverses after NFP miss

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HEADLINES

 

 

  • Dollar little changed after lower-than-expected U.S. payrolls
  • Dollar has the interest rate edge to rule for now: Reuters poll
  • Gold rises 1% as virus jitters, lower yields lift demand
  • Stocks slump after murky jobs report as markets swing
  • Bitcoin loses $10,000, or 17%, in 24 hours after overnight rout
  • NFP leaves the FOMC in a bit of a gray zone – Wells Fargo

 

 

 

FOREX

 

 

Dollar little changed after lower-than-expected U.S. payrolls

 

The dollar surrendered most of its gains to trade little changed on Friday after the release of a disappointing U.S. jobs report that suggested the Federal Reserve could pull back from plans to accelerate tapering of its asset purchases and deliver less aggressive interest rate hikes. U.S. non-farm payrolls increased by 210,000 jobs last month, the Labor Department reported. Economists polled by Reuters had forecast payrolls would advance by 550,000 jobs.

 

Dollar has the interest rate edge to rule for now: Reuters poll

 

Interest rate differentials will dominate sentiment in forex markets over the next three months, a Reuters poll of FX analysts found, placing the U.S. dollar in a unique position to extend its outperformance against its peers.

The dollar index, up nearly 7% for the year and on its best run since 2015, received further impetus from Federal Reserve Chair Jerome Powell on Wednesday, who gave markets fodder to speculate the central bank would raise rates earlier than expected.

 

 

COMMODITIES

 

 

Gold rises 1% as virus jitters, lower yields lift demand

 

Gold prices rose nearly 1% on Friday as uncertainty sparked by the Omicron coronavirus variant and a dip in U.S. Treasury yields boosted the safe-haven metal’s appeal.

 

 

STOCKS

 

 

Stocks slump after murky jobs report as markets swing

 

A week of volatile swings on Wall Street ended Friday with more losses for stocks, as a mixed batch of U.S. job market data triggered another bout of dizzying trading.

The S&P 500 closed 0.8% lower after erasing a 0.7% gain in the early going. The benchmark index was coming off a jolting stretch where it swerved by at least 1.2% in five straight days, pounded by uncertainty about how badly the newest coronavirus variant will hit the economy and about when the Federal Reserve will halt its immense support for financial markets.

 

 

CRYPTO

 

 

Bitcoin loses $10,000, or 17%, in 24 hours after overnight rout

 

Bitcoin prices dropped sharply overnight Saturday, plunging to a low near $43,000.

The world’s most prominent cryptocurrency pared losses subsequently, last changing hands at around $49,663, according to Coin Metrics.

From a 24-hour period spanning early Friday morning to early Saturday morning, bitcoin’s price went from about $57,000 to $47,000, losing $10,000, or more than 17%.

 

 

ANALYSIS

 

 

NFP leaves the FOMC in a bit of a gray zone – Wells Fargo

 

“The FOMC will clearly be discussing a faster taper at its next meeting, but this morning's report gives the Fed an out if it would like to wait an extra six weeks until its following meeting in late January 2022.”

“The Omicron variants adds additional uncertainty to whether job growth can rebound to a more robust pace through the winter as health concerns flare up again. With still so little known about the severity of the new variant at this stage, we continue to expect hiring to remain solid.”

 

 

CHART

 

 

Dollar / Yen – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

Dollar yen has formed two shooting star reversals at long term resistance alongside divergence on the weekly candlestick chart. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar


 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/nfp-leaves-the-fomc-in-a-bit-of-a-gray-zone-wells-fargo-202112031712
https://www.cnbc.com/2021/12/03/gold-markets-us-federal-reserve.html
https://apnews.com/article/coronavirus-pandemic-health-business-tokyo-hong-kong-3d956448e885cf73014a55b4a77b7f6f
https://www.cnbc.com/2021/12/04/cryptocurrencies-bitcoin-and-ether-prices-drop-sharply.html
https://www.cnbc.com/2021/12/03/gold-markets-us-federal-reserve.html
https://www.msn.com/en-us/money/markets/dollar-has-the-interest-rate-edge-to-rule-for-now-reuters-poll/ar-AARpcqg
https://finance.yahoo.com/news/forex-dollar-little-changed-lower-142043839.html

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