The sterling was a star performer yesterday, alongside oil as the OPEC rally continued. This and more on the daily Forex news. Will the USD go all the way to new highs?
2nd December, AtoZForex – Markets patiently await the non-farm payroll report due later today.
#1 Strong GBP pushes FTSE 100 down, oil shares stable
UK stocks struggled on Thursday as a rising pound weighed on consumer-related shares. Energy stocks continued to get a hike from the OPEC deal to cut oil production. The FTSE 100 was down 0.3% at 6,763.83 as December trading got underway. Only the oil, gas and basic material sectors were showing gains.
#2 BoE Carney and ECB Draghi Agree: Brexit affects banking sectors
The central bank chiefs agree that everyone is a loser from Brexit. Two days after ECB President Mario Draghi said that UK has the most to forfeit from leaving the EU, while BoE Governor Mark Carney explained the flip side. On Wednesday, he said a disruption to London’s financial district could hit essential fund flows into the euro area. According to both central banks’ Chairmen, Brexit affects banking sectors.
#3 Last 2016 Fed Beige Book: US economic growth steady
According to the report from the Federal Reserve (Fed) on Wednesday, the US economic growth has continued across most regions of the country. Fed’s Beige Book, which is published eight times a year, has indicated a steady economic growth across most of the US. It has signaled that 7 out of 12 central bank’s districts have reported modest or moderate growth.
#4 BoJ policymaker: Huge BoJ bond buying program will last
The board member of the Bank of Japan (BoJ), Makoto Sakurai, has stated that the central bank is set to maintain the massive bond-buying program. Despite the new policy aiming interest rates, the BoJ will still continue to buy government bonds. This announcement came as oppose to the view that BoJ bond-buying program was approaching a limit.
#5 Canada GDP and more
The Canada economy is expected to have grown by 0.1% in the past month. A potential drop from 0.2% recorded in the previous release. The country’s employment change and unemployment data are also due, forecast to come at 0.1k and 7.0% respectively.
#6 US Non-Farm Employment Change
Finally, on the daily Forex news, the labor conditions in the US have been really impressive in the past two years. So much so that the economic growth has been attributed to strong labor conditions. The latest NFP report is expected to show a 165k change in the number of employed people during the previous month, excluding the farming industry. While the unemployment rate is forecast to remain at 4.9%. A positive number will be sure to shake markets as the first rate hike from the Fed is now being expected in December.
Opportunity: Buy USDJPY on positive reading, Buy GBPUSD on negative reading
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