<p>Headlines:</p><ul><li><a href=”https://www.forexlive.com/news/dollar-holds-more-mixed-so-far-on-the-day-20221207/”>Dollar holds more mixed so far on the day</a></li><li><a href=”https://www.forexlive.com/news/oil-tumbles-to-fresh-lows-for-the-year-20221207/”>Oil tumbles to fresh lows for the year</a></li><li><a href=”https://www.forexlive.com/news/china-says-asymptomatic-patients-cases-with-mild-symptoms-can-undergo-home-quarantine-20221207/”>China says asymptomatic patients, cases with mild symptoms can undergo home quarantine</a></li><li><a href=”https://www.forexlive.com/news/and-thats-the-end-of-chinas-zero-covid-policy-20221207/”>And that’s the end of China’s zero-Covid policy..</a></li><li><a href=”https://www.forexlive.com/news/china-to-hold-another-press-conference-on-covid-controls-on-thursday-this-week-20221207/”>China to hold another press conference on Covid controls on Thursday this week</a></li><li><a href=”https://www.forexlive.com/news/germany-october-industrial-output-01-vs-06-mm-expected-20221207/”>Germany October industrial output -0.1% vs -0.6% m/m expected</a></li><li><a href=”https://www.forexlive.com/news/france-october-trade-balance-122-billion-vs-160-billion-expected-20221207/”>France October trade balance -€12.2 billion vs -€16.0 billion expected</a></li><li><a href=”https://www.forexlive.com/news/uk-november-halifax-house-prices-23-vs-04-mm-prior-20221207/”>UK November Halifax house prices -2.3% vs -0.4% m/m prior</a></li><li><a href=”https://www.forexlive.com/news/us-mba-mortgage-applications-we-2-december-19-vs-08-prior-20221207/”>US MBA mortgage applications w.e. 2 December -1.9% vs -0.8% prior</a></li></ul><p>Markets:</p><ul><li>EUR leads, JPY lags on the day</li><li>European equities lower; S&P 500 futures down 0.7%</li><li>US 10-year yields up 1.5 bps to 3.550%</li><li>Gold up 0.1% to$1,773.25</li><li>WTI crude up 0.1% to $74.55</li><li>Bitcoin down 1.2% to $16,790</li></ul><p style=”” class=”text-align-justify”>In the transition to European trading today, China stole the headlines as they effectively put an end to the zero-Covid policy by announcing another round of new implementation and control measures to deal with the pandemic.</p><p style=”” class=”text-align-justify”>Domestic stocks surged initially on the headlines with the Hang Seng rising up by 1.5% only to see it all reverse in a buy the rumour, sell the fact play. By the time the closing bell rung, the Hang Seng was down over 3% as Chinese stocks gave it all back and then some in a late plunge.</p><p style=”” class=”text-align-justify”>Despite that, broader market sentiment was more tepid but over the course of the session, equities dipped lower with US futures looking set for another tough day. The S&P 500 index will be a focus point later on with its 100-day moving average in the crosshairs as outlined <a href=”https://www.forexlive.com/news/european-equities-fairly-tepid-at-the-open-day-20221207/” target=”_blank” rel=”follow”>here</a>.</p><p style=”” class=”text-align-justify”>Meanwhile, Treasury yields were down slightly in a bit of a mixed showing before climbing up a little now ahead of US trading. 10-year yields fell to 3.506% before rising back up now to 3.550% and that made for a bit more of a choppy showing for the dollar in general.</p><p style=”” class=”text-align-justify”>USD/JPY bounced around between 137.35 to 137.70 levels for the most part, though buyers are still holding near-term control after <a href=”https://www.forexlive.com/news/dollar-holds-steady-to-start-the-session-20221207/” target=”_blank” rel=”follow”>a push above its 200-hour moving average</a> earlier in the day.</p><p style=”” class=”text-align-justify”>The dollar was largely steadier to start the session but traded more mixed thereafter, holding gains against the yen, aussie and loonie but seen lower against the euro, pound, franc, and kiwi.</p><p style=”” class=”text-align-justify”>EUR/USD is up 0.5% to 1.0520 as buyers look to try and push back above its 100-hour moving average at 1.0507 currently. That comes after a bounce near its 200-hour moving average at 1.0443 at the start of European trading.</p><p style=”” class=”text-align-justify”>Meanwhile, GBP/USD is up 0.3% to 1.2175 after a bounce off its 200-day moving average at 1.2128 earlier in the session.</p><p style=”” class=”text-align-justify”>The loonie is softer as oil prices tumbled to fresh lows for the year despite the optimistic news from China. WTI crude was down nearly 2% to $73 before recovering slightly now to flat levels. That saw USD/CAD move up to 1.3700 before keeping around 1.3670-80 levels now, still up 0.2% on the day.</p><p style=”” class=”text-align-justify”>Once again, it’s a bit of a mixed one in Europe as traders and investors are left to their own devices with very little to work with. The Bank of Canada will be the focus later today but otherwise, it’s a bit of a wait to the US PPI data on Friday before we see any potential firm directional moves next.</p>
This article was written by Justin Low at forexlive.com.