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Currency Market Analysis

Dec 02, 2020 | Currency Market Analysis

Global Themes

Greenback lower as US stimulus talks restart

The US dollar fell and other major financial markets were lifted overnight as hopes returned for a potential US stimulus bill to provide support ahead of President-elect Joe Biden’s 20 January start-date.

US Treasury Secretary Steven Mnuchin and Democratic leader Nancy Pelosi were believed to speak overnight. The USD908 billion package would provide support until 31 March.

The news saw US shares gain further with the S&P500 up 1.1% and the Nasdaq up 1.5%. Both indexes made new all-time highs.

Euro breaks higher

The euro jumped higher as the EURUSD pair busted through two-year highs.

The GBP was stronger as markets turned more hopeful on the UK-EU trade talks.

The AUD and other commodity-based currencies gained after better Chinese PMI data yesterday.

Aussie GDP beats

In early trade, Australian September-quarter GDP numbers saw a better than expected 3.3% gain as the economy recovered from the big hit at the start of the year.

Later, US ADP jobs will be closely watched ahead of Friday’s all-important US non-farm payrolls.

The US Federal Reserve chairman Jerome Powell also speaks later tonight.


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