The dollar is mixed this morning as financial markets continue to digest last Friday’s jobs data for November. Most market practitioners expect the US Federal Reserve to continue on their tact of tapering and eventually raising rates later next year. The Chinese renminbi continues to strengthen as the authorities there cut bank reserve requirements thereby injecting liquidity.
Weekly economic activity
Wednesday: JOLTS Job Openings
Thursday: Initial Jobless Claims
Friday: CPI for November, Univ. of Michigan Consumer Sentiment for December
December 6, 2021
EUR/USD 1.1291 GBP/USD 1.3244 USD/CAD 1.2797 AUD/USD 0.7044 USD/JPY 113.18 USD/CNH 6.3742 USD/ILS 3.1675 USD/MXN 21.1908 USD/CHF 0.9232 USD/INR 75.4238 USD/BRL 5.6892 USD/SGD 1.3688 USD/DKK 6.5842 USD/SEK 9.0810 USD/NOK 9.1077
The dollar is swinging between gains and losses this morning as many FX market players remove speculative positions that had been build since the last Fed meeting. This Friday’s CPI data will be watched carefully for any significant variability around the 6.8% YoY expected.GBP
Sterling continued its decline last week against safe haven currencies, including the US dollar, where the GBP/USD pair has stabilized around the current level of support at 1.3230.EUR
The euro has weakened this morning, trading 0.25% lower against the British pound and the US dollar as German Factory orders plummeted in October. Orders fell 6.9% after an increase of 1.3% the month before.CAD
The Canadian dollar is stronger this morning following a rebound in crude oil prices. Last week's risk-off trading hit oil prices especially hard, so some bounce back was expected.ASIA/PACIFIC
Chinese authorities cut their bank reserve requirements freeing up capital for banks to put to work. The effort is largely in response to China’s slowing economy. The move is in contrast with other central banks, which are engaged in monetary policy tightening, and is causing to some weakness in the renminbi.
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