US dollar
Markets are mixed and the dollar is off Thursday’s lows as traders await the all-important Nonfarm Payrolls report and Brexit acrimony is weighing on the pound.
The dollar has stabilized after suffering a downfall on Thursday. One of the reasons for the dollar’s comeback and the cooling in markets has been a drop in chances for a stimulus package. Senate Majority Leader Mitch McConnell said he still prefers a small relief deal rather than the large, near $1 trillion one.
GBP/USD is off the highs near 1.35 but has retreated, EUR/USD clings to 1.2150 amid cooler market mood and USD/JPY trades a handful of pips below the 104.00 level.
WTI Crude Oil has jumped above $46 after OPEC+ members agreed to extend production cuts into 2021 following long days of talks. Gold is holding onto gains and changes hands at around $1,840.
Looking forward, the UK’s second reading of November month’s Construction PMI, 52 versus 53.1 prior, can offer immediate direction ahead of the last month’s employment data from the US. The US Nonfarm Payrolls report for November is set to show an increase of 469,000 jobs, down from 638,000 in October. The Unemployment Rate is set to decline from 6.9% to 6.8%. Investors want to see if the recovery is still on track or if the second wave of the virus has hurt job growth.