The US dollar exhibits a mixed performance. Sterling has emerged as the weakest among the G10 currencies, following the release of unexpectedly disappointing employment figures that have increased the likelihood of a rate cut in the upcoming month. The dollar has achieved a slight new high against the Japanese yen since February; however, it has yet to surpass the JPY154.50 threshold. The dollar-bloc currencies are exhibiting a softer trend, whereas the Scandinavian currencies are showing slight firmness. The holidays observed in the US and Canada result in a subdued North American trading session today.

Equities in the Asia Pacific region exhibited a mixed performance, with the MSCI regional index remaining relatively stable. South Korea and Singapore emerged as the top performers, whereas China’s CSI 300 experienced the most significant decline among the major exchanges, dropping nearly 1%. Europe’s Stoxx 600 is experiencing an upward trend for the second consecutive session, a development not seen in over two weeks. The S&P and Nasdaq futures are down approximately 0.20-0.35%. Most benchmark 10-year yields in Europe are showing slight firmness, while UK Gilts stand out with a decline of 5-6 basis points. US note futures suggest yields will remain stable to slightly higher. Gold has continued its upward trajectory from yesterday, adding $22 to reach $4138, following a previous gain of $114.50. Today, it recorded a high close to $4149 in the cash market. The asset has now retraced slightly more than 50% of its losses since reaching the record high on October 20 (~$4381.50). December WTI remains stable, yet it has been constrained around the $60.50 mark for the fourth consecutive session.

The US banks and bond market are currently closed, whereas the stock market remains operational today. The House of Representatives is poised to cast a vote tomorrow on the compromise bill that received Senate approval. The re-opening might occur after the release of the October CPI, PPI, and retail sales data that were scheduled for this week. Following the multi-year low noted on September 17, coinciding with the Fed’s initial rate cut of the year, the Dollar Index experienced a rally of approximately 4.3%, reaching its peak since late May at 100.35, and touched the 200-day moving average for the first time since early March last week. The asset exhibited a trading range last Friday between approximately 99.40 and 99.90, maintaining that range throughout yesterday and into today. Proximity to support is identified in the 99.20-25 range. The daily momentum indicators are set to decline, and a breach of the 98.75 level would reinforce our belief that the nearly two-month upward correction has reached its conclusion.

The euro’s rebound from last week’s three-month low (~$1.1470) encountered resistance near the downward trendline that links the highs from September and October. The current value is approximately $1.1590, which aligns closely with the 20-day moving average as well. This aligns with the (50% retracement) of the pullback from the previous month’s peak, which was just above $1.1720. The euro’s consolidation within last Friday’s range (~$1.1530-$1.1590) appears to be a positive development. Germany’s November survey has shifted the recent trend. Following a decline over the last three months, the latest evaluation has shown a modest improvement. The current figure is -78.7, following the -80.0 reading in October, marking the lowest point since May. The figure stood at -93.1 at the conclusion of the previous year. Expectations, having shown improvement in five of the previous six months, experienced a decline in November. The figures decreased to 38.5 from 39.3, compared to 15.7 at the conclusion of the previous year.