Currency Markets Eye US Jobs Data Amid Political Turmoil

6 Dec 2024 , 10:07 AM

As markets assessed the effects of a politically charged week that saw the fall of France’s government and the temporary declaration of martial emergency in South Korea, major currencies stabilised on Friday.

Bitcoin took a pause in the cryptocurrency market after soaring beyond $100,000 for the first time the day before, and even doubters now anticipate that a Trump administration that is supportive of cryptocurrencies will fuel a protracted run.

As investors try to gauge the speed of future rate cuts by the Federal Reserve, the focus on the overall economy will be on the U.S. non-farm payrolls report for November, which is out later today.

According to the CME FedWatch tool, markets now have a 72% chance of the Federal Reserve cutting interest rates by 25 basis points when it meets on December 17–18, up from 66.5% a week ago.

The dollar index, which compares the value of the US dollar to six competitors, increased 0.05% to 105.77 ahead of the report after plunging to a three-week low the day before.

As traders prepared for a protracted reckoning for France, the euro was down 0.05% at $1.0582 after rising on Thursday as French bonds steadied and moved farther away from a two-year low of $1.03315 hit at the end of November.

On Thursday, French President Emmanuel Macron met with parliament leaders and allies in an effort to quickly select a replacement for Michel Barnier.

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