Market awaits US PPI data

　　

U.S. equities bounced back as the Initial Jobless Claims showed higher than the previous number, which is a sign that the inflationary pressures are still around, and the Fed may keep rates higher. On Friday, the data releases include producer prices and the University of Michigan’s consumer sentiment reading will be the turning point for the stock market of this week. The Dow Jones Industrial Average has raised 0.55% to close at 33781.48. The S&P 500 raised 0.75% to close at 3963.51.

The tech-heavy Nasdaq Composite raised 1.13% to close at 11082. The Dow rose was due to tech rebounded, shrugging off a climb in Treasury yields as investors looked ahead to data due Friday expected to show a further easing in inflation. Treasury yields rose, U.S. 10-year treasury yield sits at around 3.485%. The policy-sensitive 2-year treasury yield sits at 4.315%.

This Friday, after US shares, posted their first gain this month, with traders awaiting key inflation figures in China and the US. Oil rose at the open in Asia after tapping a fresh one-year low in a volatile session on Thursday. 

The CPI, PPI, NFP, and Pre-Fed sentiment keeps DXY bulls hopeful even as downbeat US data since mid of November, risk-on mood favour bears. The dollar remained lower versus its major counterparts as the geopolitics-driven appetite for haven investments faded. The Australian and New Zealand dollars held gains from overnight in early Asian trading. However, the greenback’s gauge versus the six major currencies braces for the first weekly gain in three ahead of the key US consumer-centric data.

Main Pairs Movement

The US dollar’s consecutive losses since Wednesday, the release of U.S. Initial Jobless Claims on Thursday adds another resistance on the hawkish side, though the number was too high and overestimated, it is still higher than the previous, which is taken as negative/bearish for the USD. Meanwhile, the consensus is for China’s inflation indexes to have headed down last month, though the market investors expect a pickup as the economy reopens.

EUR/USD continues its strength and keeps winning, and this pair is eying more upside towards a weekly high at 1.0600 amid a cheerful market mood. EUR/USD is eying more upside towards a weekly high at 1.0600 amid a cheerful market mood and looking for stability at this point.

The Gold price extends a three-day uptrend, thanks to the firmer sentiment, and downbeat United States statistics weighed on the US Dollar. Not only due to the Fed policy and statement, China is one of the world’s key Gold consumers, with its new rules about coronavirus, but the China Consumer Price Index (CPI) is also looking optimistic, the gold price is with the scheduled top-tier readings from China and the United States.

Economic Data

Currency	Data	Time (GMT + 8)	Forecast
EUR	ECB President Lagarde Speaks	02:00	–
USD	PPI (Nov)	21:30	0.2%