Dollar Slips for 5th Day; Sterling Extends Gains
DECEMBER 05, 2019
The U.S. pushed slightly weaker again overnight, marking the fifth straight day of losses for the greenback.
Overall the Blomberg Dollar Index is 0.7% lower since Monday. The U.S. dollar did eke out a small gain versus the Australian dollar after Australian retail sales missed estimates.
Trade-related headlines again merit our attention today. A China’s Ministry of Commerce spokesperson said negotiators remain in close contact and expressed optimism a “Phase one” deal could be done before the December 15th deadline when new tariffs are set to take place. Let the breath-holding continue.
U.S. factory orders and durable good orders ware due out at 10 a.m. and could spark minor volatility. All eyes will be on tomorrow’s Non-farm payrolls print due out at 8:30 a.m.
What to Watch Today…
- No major data out today
Complete Economic Calendar can be found here.
The common currency ticked a bit higher overnight but held a mostly tight range. German factory orders unexpectedly fell, highlighting continued worries for the bloc’s largest economy. Orders fell 0.4%, compared with a forecast of a 0.4% gain. A separate report showed that retail sales for the Eurozone fell 0.6%. The final reading of Eurozone GDP was mixed but a breakdown of the print showed some signs of hope in household spending and exports. EUR/USD is likely to maintain ranges ahead of tomorrow’s U.S. jobs numbers.
The British pound continued its climb higher against the U.S. dollar overnight, extending its gains to the best level in seven months against its American rival. Numerous polls released over the past week have shown the Conservative party holding on or extending their lead against the Labour party, allowing the sterling to enjoy a pre-election rally. The sterling has now gained past Tempus’ end of year forecast and some technical traders warn the currency may be “overbought.”