• Foreign exchange market. European session: the euro lower against the U.S. dollar as market participants continued to eye the European Central Bank's (ECB) interest rate decision

Market news

4 December 2015

Foreign exchange market. European session: the euro lower against the U.S. dollar as market participants continued to eye the European Central Bank's (ECB) interest rate decision

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:30 Australia Retail Sales, M/M October 0.4% 0.5% 0.5%

01:30 Japan Labor Cash Earnings, YoY October 0.4% 0.4% 0.7%

05:00 Japan Consumer Confidence November 41.5 41.8 42.6

07:00 Germany Factory Orders s.a. (MoM) October -0.7% Revised From -1.7% 1.2% 1.8%

08:15 Switzerland Consumer Price Index (MoM) November 0.1% 0% -0.1%

08:15 Switzerland Consumer Price Index (YoY) November -1.4% -1.3% -1.4%

The U.S. dollar traded mixed to higher against the most major currencies ahead the release of the U.S. economic data. The U.S. unemployment rate is expected to remain unchanged at 5.1% in November.

The U.S. economy is expected to add 200,000 jobs in November, after adding 271,000 jobs in October.

The U.S. trade deficit is expected to narrow to $40.5 billion in October from $40.81 billion in September.

The euro lower against the U.S. dollar as market participants continued to eye the European Central Bank's (ECB) interest rate decision. Market participants were disappointed because they hoped for more stimulus measures by the ECB. The ECB kept its interest rate unchanged at 0.05% on Thursday, but lowered its deposit rate to -0.3% from -0.2%. The asset-buying programme will be extended until the end of March 2017. The volume of the monthly purchases remained unchanged.

Meanwhile, the economic data from Germany was positive. Destatis released its factory orders data for Germany on Friday. German seasonal adjusted factory orders climbed 1.8% in October, exceeding expectations for a 1.2% increase, after a 0.7% fall in September. September's figure was revised up from a 1.7% drop.

The rise was driven by an increase in foreign and domestic orders. Foreign orders increased by 1.8% in October, while domestic orders rose by 1.7%.

New orders from the Eurozone jumped 2.7% in October, while orders from other countries climbed 1.4%.

Orders of the intermediate goods increased by 0.1% in October, capital goods orders were up 2.7%, while consumer goods orders soared 3.8%.

The ECB President Mario Draghi will speak at 16:45 GMT.

The British pound traded mixed against the U.S. dollar in the absence of any major economic reports from the U.K.

The Canadian dollar traded higher against the U.S. dollar ahead the Canadian labour market data. The unemployment rate in Canada is expected to remain unchanged at 7.0% in November.

Canada's economy is expected to lose 10,000 jobs in November.

The Canadian trade deficit is expected to narrow to C$1.7 billion in October from C$1.73 billion in September.

The Swiss franc traded lower against the U.S. dollar. The Swiss Federal Statistics Office released its consumer inflation data on Friday. Switzerland's consumer price index fell 0.1% in November, missing expectations for a flat reading, after a 0.1% increase in October.

The decline was partly driven by lower prices for clothing. Prices for clothing and shoes declined 0.7% in November.

On a yearly basis, Switzerland's consumer price index remained unchanged at -1.4% in November, missing forecasts for a 1.3% drop. It was the biggest fall since July 1959.

EUR/USD: the currency pair fell to $1.0854

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair increased to Y123.00

The most important news that are expected (GMT0):

13:30 Canada Trade balance, billions October -1.73 -1.7

13:30 Canada Unemployment rate November 7.0% 7%

13:30 Canada Employment November 44.4 -10

13:30 U.S. Average workweek November 34.5 34.5

13:30 U.S. Average hourly earnings November 0.4% 0.2%

13:30 U.S. International Trade, bln October -40.81 -40.5

13:30 U.S. Nonfarm Payrolls November 271 200

13:30 U.S. Unemployment Rate November 5% 5%

15:00 Canada Ivey Purchasing Managers Index November 53.1 55.3

16:45 Eurozone ECB President Mario Draghi Speaks

17:00 U.S. FOMC Member Dudley Speak

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