Unemployment may decline

The number of Americans first-time filing for unemployment benefits was down last week, but remained extremely high amid widespread business restrictions to slow the rising tide of new COVID-19 infections and a lack of additional financial incentives.

Yesterday, the macro statistics on business activity in the US was released. On a seasonally adjusted basis, the IHS Markit Services PMI totaled 58.4 in November compared to 56.9 in October. The growth in business activity resulted in an increase of the purchasing power of the population, as a result of which orders for goods increased. This suggests that the US economy is starting to recover, which will be able to create a good investment climate for the country in the future.

On Friday, oil prices are increasing in price and may go up for the fifth week in a row after the leading manufacturers agreed to continue to limit the production to combat the consequences of the coronavirus. WTI oil is currently trading at 46.20.

Market indicators

Yesterday, the Dow Jones closed with an increase by 0.29%, the S&P 500 fell by 0.06%, the Nasdaq increased by 0.23%. The S&P 500 showed a downtrend as Pfizer cut its vaccine supply target.

The dollar index is in a downtrend and is trading at 90.65.

The 10-year government bonds yield remains stable at 0.91%.

It is worth paying attention to the news feed for today. Nonfarm payrolls are coming out today, which always makes the foreign exchange market more volatile. At this time, we recommend traders to be careful when making transactions due to the increased volatility.

The news feed for 2020.12.04:
  • – UK Construction PMI at 11:30 (GMT+2);
  • – US Nonfarm Employment Change at 15:30 (GMT+2);
  • – US Unemployment Rate at 15:30 (GMT+2).

by Justforex, 2020.12.04

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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