Giles Coghlan LLB, Lth, MA
Financial Source
On Monday, the ISM Services PMI is particularly important since the services sector accounts for 70% of the US GDP. A significant miss in this data could signal dollar weakness and increase the likelihood of interest rate cuts. Additionally, the RBA interest rate decision is crucial, especially given the rising inflation and tight labor market in Australia. If the Reserve Bank of Australia hints at potential interest rate hikes, it could boost the Australian and New Zealand dollars.
Tuesday brings New Zealand labor data, which, while important for the New Zealand dollar, may not be a major market mover unless there's a substantial miss. Wednesday and Thursday are expected to be quiet with no major economic events.
Friday's Canadian labor data will be significant for the Bank of Canada. A weak labor market could increase the chances of further interest rate cuts to alleviate pressure on mortgage holders.
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Editors’ Picks
EUR/USD stabilizes near 1.0550, looks to post weekly gains
EUR/USD continues to fluctuate in a tight channel at around 1.0550 in the American session on Friday as trading action remains subdued with US financial markets heading into the weekend early. The pair looks to end the week in positive territory.
GBP/USD loses traction, retreats below 1.2700
After climbing to its highest level in over two weeks at 1.2750, GBP/USD reverses direction and declines to the 1.2700 area on Friday. In the absence of fundamental drivers, investors refrain from taking large positions. Nevertheless, the pair looks to snap an eight-week losing streak.
Gold pulls away from daily highs, holds near $2,650
Gold retreats from the daily high it set above $2,660 but manages to stay afloat in positive territory at around $2,650, with the benchmark 10-year US Treasury bond yield losing more than 1% on the day. Despite Friday's rebound, XAU/USD is set to register losses for the week.
Bitcoin attempts for the $100K mark
Bitcoin (BTC) price extends its recovery and nears the $100K mark on Friday after facing a healthy correction this week. Ethereum (ETH) and Ripple (XRP) closed above their key resistance levels, indicating a rally in the upcoming days.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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