logo

FX.co ★ 03.12.2020: USD trading flat ahead of NFP report: outlook for USDX, USD/JPY, AUD/USD

03.12.2020: USD trading flat ahead of NFP report: outlook for USDX, USD/JPY, AUD/USD

The UK has approved Pfizer/BioNTech Covid-19 vaccine for rollout next week, which is bearish for the US dollar. Market sentiment is improving amid expectations that the global economy will soon be on the path to recovery. Risk appetite is also climbing up on the back of such hope.

The US dollar index, which measures the strength of the greenback against a basket of six major currencies, has already fallen below the level of 91.00, its lowest levels since April 30, 2018. Investors are opening short deals on the US currency in anticipation of the Fed’s stimulus measures. Yesterday, payroll processor ADP released a report showing that private sector employment in the US increased by less than expected. On Friday, the nonfarm payrolls report is on tap.

Weak jobs data may force the central bank to ease monetary policy or expand the asset purchase program. If so, the regulator may implement negative rates or print more money, which , of course, is negative for the US dollar.

Investors refrained from active trading as President-elect Joe Biden approved a $908 billion stimulus plan from a bipartisan group of lawmakers. He said it would be "a great down payment". Biden also added that he would propose a new relief bill when he officially takes the office.

The dollar/yen pair is fluctuating between the levels of 104.77 and 104.05. Demand for the yen is weak as risk appetite dominates the market. Traders are also in no hurry to buy the US dollar in anticipation of nonfarm payrolls data. Technical analysis experts bet on a downward movement. To confirm this prediction, the pair should go down to the level of 104.05. If so, it may well tumble to the level of 103.18. There is a fat chance that the US dollar may develop a rally. If it happens, the pair will rise above the 104.77 level aiming at 105.85.

The Australian dollar soared to the level of 0.7430, its 28-month high, amid the greenback’s weakness. The Aussie picked up steam amid the upbeat report showing an increase in trade surplus and exports. Exports gained 5%, However, the Australian currency is overbought. So, it may reverse and decrease to the level of 0.7384 and then to 0.7340.

www.instaforex.com

FX Analytics - www.instaforex.com/forex_analytics

Forex Calendar - www.instaforex.com/forex_calendar

Forex TV from InstaForex - www.instaforex.com/instaforex_tv

Forex charts - www.instaforex.com/charts

Instant account opening - www.instaforex.com/fast_open_live_account

Forex Trading Contests - www.instaforex.com/forex_contests

List of official InstaForex blogs:

www.facebook.com

www.instagram.com

twitter.com

#forex_news # asian_session #instaforex_tv

* Phân tích thị trường được đăng ở đây nhằm mục đích nâng cao nhận thức của bạn, nhưng không đưa ra hướng dẫn để thực hiện giao dịch
Đi tới danh sách bài viết