What you need to know on Thursday, December 2:
Fears cooled down on Wednesday, resulting in major pairs holding into familiar levels. The greenback ended the day mixed, firmer against commodity-linked rivals but down against other safe-haven currencies.
The cautious optimism came from the World Health Organization, as it said that current vaccines could still offer protection against the new Omicron coronavirus variant, preventing severe illness. Also, the WHO reported that so far, the new strain seems to be causing milder symptoms and illness.
US Federal Reserve chief Jerome Powell testified again before a different Senate Commission and repeated that inflation has spread more broadly and that the risk of persistent inflation has risen. However, he also said that, while they need to remove the world “transitory,” he still believes inflation will come down “meaningfully” in the second half of 2022.
Asian and European indexes closed in the green, while Wall Street opened with a positive tone but trimmed most of its intraday gains ahead of the close. Meanwhile, US Treasury yields ticked modestly higher, with the 10-year note yielding 1.44% at the time being.
The EUR/USD pair trades around 1.1320, while GBP/USD stands at 1.3280, both at risk of falling further. The AUD/USD pair trades at around 0.7110, while USD/CAD is pressuring daily highs in the 1.2830 price zone.
Gold remains under pressure, currently trading at $1,780 a troy ounce. Crude oil prices edged lower, with WTI now at around $65.75 a barrel.
The focus now shifts to US employment figures ahead of the Nonfarm Payrolls report to be out next Friday. The country is expected to have added 550K new jobs in November, quite a healthy reading in terms of monetary policy.
Ethereum price builds the momentum to hit new all-time highs
Like this article? Help us with some feedback by answering this survey:
>
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD soars past 1.1200 as China's tariffs confirmed at 145%
EUR/USD soared beyond 1.1200 amid headlines confirming the latest round of tariffs, levies on Chinese imports reached 145%. Wall Street collapses amid renewed concerns that Trump's policies will hit the American economy. Soft US inflation data released earlier in the day adds to the broad US Dollar's weakness.
GBP/USD closes in to 1.3000 on renewed USD selling
GBP/USD resumed its advance and nears the 1.3000 mark, as speculative interest resumed US Dollar selling. Softer than anticipated US CPI figures and persistent tensions between Washington and Beijing over trade weigh on the American currency and Wall Street.
Gold resumes record rally, reaches $3,175
Gold extended its record rally on fresh tariff-related headlines, trading as high as $3,175 a troy ounce in the American session. The White House confirmed 35% levies on Mexico and Canada, 145% on Chinese imports, resulting in a fresh round of USD selling and pushing XAU/USD further up.
Cardano stabilizes near $0.62 after Trump’s 90-day tariff pause-led surge
Cardano stabilizes around $0.62 on Thursday after a sharp recovery the previous day, triggered by US Donald Trump’s decision to pause tariffs for 90 days except for China and other countries that had retaliated against the reciprocal tariffs announced on April 2.
Trump’s tariff pause sparks rally – What comes next?
Markets staged a dramatic reversal Wednesday, led by a 12% surge in the Nasdaq and strong gains across major indices, following President Trump’s unexpected decision to pause tariff escalation for non-retaliating trade partners.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.