Market Update - 06 December 2023

The Euro extends losses after weak German factory orders Sluggish Eurozone data increases hopes of ECB rate cuts on early 2024 The EUR/USD approaches an important support area at 1.0750. (FXStreet)

USD/CAD loses ground around 1.3575 despite the rebound of USD. US ISM Services PMI arrived at 52.7 in November vs. 51.8 prior, above the market consensus. Bank of Canada (BoC) to hold interest rate steady at 5.0% at its December meeting. US ADP Employment Change, BoC monetary policy meeting will be in the spotlight on Wednesday. (FXStreet)

GBP/USD gains ground on the renewed USD weakness. US JOLTS labor data came in worse than expected, US ISM Services PMI arrived stronger than market expectation. The markets are now almost fully priced in a first BoE rate cut by June 2024. (FXStreet)

USD/JPY is stabilizing above 147.00, having witnessed good two-way action on Tuesday. Investors assess Fed rate cut bets after mixed US economic data. US Dollar retreats. BoJ policymaker Ryozo Himino’s dovish comments lend support to USD/JPY. (FXStreet)

The GBP/JPY has closed in the red for six of the last seven consecutive trading days. Broad-market risk-off market sentiment is seeing a firm bid into safe havens like the Yen. Wednesday brings the BoE's latest Financial Stability Report, early Friday sees Japan quarterly GDP. (FXStreet)

EUR/JPY is diving almost 3% since November 27, when the pair hit a high of 163.72 The downtrend remains intact, though it could accelerate further with a drop below 157.55. If EUR/JPY buyers reclaim 159.00, that could pave the way for gains.(FXStreet)

The EUR/GBP mildly softened to 0.8570, seeing mild losses, Daily chart indicators signal strong bearish momentum; RSI hints continue standing near overbought conditions while MACD showcases flat red bars. The bears seem to be taking a breather to consolidate losses.  (FXStreet)

The DXY Index sees upward movements threatening the 20-day SMA near the 104.00 level. The US service sector expanded in November, according to the ISM. Investors keenly await the Unemployment Rate and Nonfarm Payrolls reports due this Friday. Unit labor costs and ADP Employment change figures from November are due on Wednesday. (FXStreet)

The USD/CHF is grinding higher to eke out a second daily high, but momentum remains thin. The US Dollar remains steeply sold-off against the Swiss Franc. Economic calendar data leans heavily into the US side this week, culminating in another NFP print. (FXStreet)

AUD/USD recovers above key 200-day SMA support-turned-resistance, as US Dollar turns south. Daily RSI is firming up above the midline while the 21-day SMA at 0.6535 offers strong support. If AUD/USD buyers reclaim 97.00, a rally to 98.00 is on the cards. (FXStreet)

NZD/USD is rebounding above 0.6150 early Wednesday. Renewed US Dollar weakness is supporting the Kiwi amid a mixed mood. Focus shifts to US ADP Employment Change data for fresh impetus. (FXStreet)

AUD/JPY dipped below key support levels, like the Kijun-Sen, and Senkou Span. The Chikou Span crossing below price action, and narrowing distance between Tenkan and Kijun-Sen, signals bears are gaining traction. If AUD/JPY buyers reclaim 97.00, a rally to 98.00 is on the cards. (FXStreet)

WTI prices trade in negative territory, losing 0.04% on the day. Moody’s downgraded China’s sovereign credit rating from stable to negative, citing the increasing risks to growth and a property sector crisis. Oil traders are concerned about the effectiveness of voluntary supply cuts by OPEC+. US ADP Employment Change and EIA Crude Oil Stocks Change will be due later on Wednesday. (FXStreet)

Gold price is picking up fresh bids near $2,020 as the US Dollar slips despite a risk-off mood. Positive US Treasury bond yields could cap the Gold price rebound. All eyes on US ADP jobs data for a fresh trading impetus on Gold price. (FXStreet)

Source: FXStreet, DailyFX

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