<p style=““ class=“text-align-justify“>A look at the dollar from the previous posts today:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/christmas-carnage-for-the-dollar-20221201/“ target=“_blank“ rel=“follow“>Christmas carnage for the dollar?</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-stays-under-heavy-pressure-on-falling-yields-20221201/“ target=“_blank“ rel=“follow“>USD/JPY stays under heavy pressure on falling yields</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurusd-still-has-some-work-to-do-to-firmly-establish-next-upside-leg-20221201/“ target=“_blank“ rel=“follow“>EUR/USD still has some work to do to firmly establish next upside leg</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/audusd-looks-to-build-on-yesterdays-technical-break-higher-20221201/“ target=“_blank“ rel=“follow“>AUD/USD looks to build on yesterday’s technical break higher</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-inches-closer-towards-its-200-day-moving-average-as-buyers-seek-further-breakout-20221201/“ target=“_blank“ rel=“follow“>GBP/USD inches closer towards its 200-day moving average as buyers seek further breakout</a></li></ul><p style=““ class=“text-align-justify“>The levels above are still largely in play with the dollar keeping lower after yesterday’s drop. Besides a continued push higher in GBP/USD to 1.2150 currently on the session, other dollar pairs are holding on to gains since Asia trading for now.</p><p style=““ class=“text-align-justify“>This comes as European stocks are higher, playing catch up to the gains in Wall Street yesterday. However, US futures are more tepid with S&P 500 futures down 0.1% while Nasdaq futures and Dow futures are down 0.2%. Elsewhere, 10-year Treasury yields are keeping at the lows after yesterday’s plunge – sitting at 3.61% currently.</p><p style=““ class=“text-align-justify“>The lack of follow through in broader markets is at least not seeing things get worse for the dollar in European trading. The technicals outlined in the above posts is arguably a consideration but there’s also the fact that market players may be waiting on the US jobs report tomorrow before firming up their convictions.</p><p style=““ class=“text-align-justify“>For now, it looks like European traders are just biding their time and we’ll have to see what US traders have to offer later today.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Prior 6.6%</li></ul><p style=““ class=“text-align-justify“>A slight tick lower in the jobless rate as it reaffirms that labour market conditions are holding up. But amid some softer economic data from Europe in the past month, we have seen the PMI reports note a bit of a hit to employment conditions. That might be something that will translate to labour market data if things worsen going into next year.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>The UK manufacturing sector continues to contract in November, with output, new orders and employment all falling further on the month. Meanwhile, business sentiment also dips to its lowest level since April 2020 as the outlook deteriorates markedly. The only consolation is that inflation pressures are easing a little, with input prices falling to a three-month low. S&P Global notes that:</p><p style=““ class=“text-align-justify“>“November saw a further contraction of the UK manufacturing sector, as weak demand, declining export sales, high energy prices and component shortages all hit industry hard. </p><p style=““ class=“text-align-justify“>“The outlook for the sector also darkened, as confidence among manufacturers fell to its lowest level since April 2020. Weak sentiment and declining intakes of new work led to job losses, a retrenchment in purchasing activity and an accumulation of finished goods inventory that will likely provide a further brake to output during the months ahead. Companies are also reporting rising recession fears, weak consumer spending and subdued client confidence. </p><p style=““ class=“text-align-justify“>“The trend in new export business was especially weak, as Brexit issues and supply chain stresses exacerbated the effects of a weakening global economic backdrop, leading to lower sales from the US, the EU and China. On a slightly more positive note, manufacturers saw a welcome easing in input price <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_2″ class=“terms__main-term“>inflation</a>. However, firms are still reporting that the direct and indirect impacts of high energy prices remain a major concern.”</p>

This article was written by Justin Low at forexlive.com.