Here’s what you need to know on Monday, December 1:
Financial markets are adopting a cautious stance at the beginning of the week and the month of December, with US stock index futures declining by between 0.5% and 1% in the European morning on Monday. In the second half of the day, the US economic calendar will include the Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) report for November.
In the Asian session, data from China showed that the RatingDog Manufacturing PMI fell into contraction territory at 49.9 in November from 50.6 in October. This reading was lower than market expectations of 50.5. After rising by about 1.5% the previous week Australian Dollar/US Dollar It declines on Monday and trades in the negative territory below 0.6550.
the US Dollar (USD) The index lost more than 0.7% last week as dovish comments from Federal Reserve officials fueled expectations of a 25 basis point interest rate cut in December. Fed Chairman Jerome Powell will participate in a panel discussion on George Schultz and his contributions to economic policy but is not expected to talk about monetary policy because the Fed is entering a blackout period ahead of the meeting on December 9-10. The US Dollar Index settled around the 99.50 level to start the European session on Monday.
US dollar price last 7 days
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed in the last 7 days. The US dollar was weakest against the New Zealand dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.67% | -0.86% | -0.59% | -0.81% | -1.28% | -2.01% | -0.48% | |
| euro | 0.67% | -0.20% | 0.09% | -0.14% | -0.63% | -1.35% | 0.19% | |
| GBP | 0.86% | 0.20% | 0.29% | 0.06% | -0.43% | -1.15% | 0.39% | |
| JPY | 0.59% | -0.09% | -0.29% | -0.22% | -0.75% | -1.57% | 0.11% | |
| Canadian | 0.81% | 0.14% | -0.06% | 0.22% | -0.48% | -1.21% | 0.32% | |
| Australian dollar | 1.28% | 0.63% | 0.43% | 0.75% | 0.48% | -0.73% | 0.84% | |
| New Zealand dollar | 2.01% | 1.35% | 1.15% | 1.57% | 1.21% | 0.73% | 1.56% | |
| Swiss franc | 0.48% | -0.19% | -0.39% | -0.11% | -0.32% | -0.84% | -1.56% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Bank of Japan Governor Kazuo Ueda said on Monday that postponing interest rate hikes for a long period could cause severe inflation and force the central bank to make a rapid policy adjustment. USD/JPY It remains under modest downward pressure and falls towards 155.50 early Monday.
EUR/USD It remains relatively calm on Monday and consolidates last week’s gains, just below 1.1600. On Tuesday, Eurostat will publish inflation data for the Harmonized Index of Consumer Prices (HICP) for November.
gold The week started off significantly higher and touched its highest level since late October above $4,250 in the Asian session on Monday. The XAU/USD pair is correcting lower but managed to hold comfortably above $4,200 in the European morning.
GBP/USD He posted small daily losses on Friday but gained about 1% during the week. The pair is falling towards the 1.3200 level to start the European session.
(This story was corrected on December 1 at 08:02 GMT to say that Fed Chairman Jerome Powell is not expected to talk about monetary policy.)
Frequently asked questions about risk sentiment
In the world of financial terminology, the two widely used terms “risk appetite” and “risk aversion” refer to the level of risk that investors are willing to take over the indicated period. In a “risk on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk off” market, investors begin to “play safe” because they are concerned about the future, and thus buy assets that are less risky and more guaranteed to generate a return, even if it is relatively modest.
Typically, during periods of “risk on”, stock markets rise, and most commodities – with the exception of gold – will also rise in value because they benefit from positive growth expectations. The currencies of countries exporting heavy goods are strengthening due to increased demand, and cryptocurrencies are rising. In a “risk off” market, bonds – especially major government bonds – rise, gold shines, and safe-haven currencies like the Japanese yen, Swiss franc and US dollar all benefit.
The Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD) and minor foreign currencies such as the Ruble (RUB) and South African Rand (ZAR) tend to appreciate in ‘risk’ markets. This is because the economies of these currencies rely heavily on commodity exports for growth, and commodities tend to rise in price during periods of risk. This is because investors expect increased demand for raw materials in the future due to increased economic activity.
The major currencies that tend to rise during “risk off” periods are the US Dollar (USD), the Japanese Yen (JPY), and the Swiss Franc (CHF). The US dollar, because it is the world’s reserve currency, and because in times of crises investors buy US government debt, which is considered safe because the world’s largest economy is unlikely to default. The reason for the yen is the increased demand for Japanese government bonds, because a high percentage of them are held by domestic investors who are unlikely to get rid of them – even in a crisis. The Swiss franc, because strict Swiss banking laws provide investors with enhanced capital protection.
