Markets were fairly quiet yesterday after Monday's volatility.
JOLTS numbers showed some marginal strength in the US job market but this had a negligible impact on USD.
It was also announced that French lawmakers will hold a no-confidence vote today with expectations that Marine Le Pen will join forces with a left-wing coalition to topple the government.
We saw more geopolitics yesterday and overnight impacting FX markets. South Korea's political landscape shifted overnight as martial law was declared, initially boosting the JPY. However, the swift reversal of this decision led to a dip in JPY strength, leaving President Yoon with looming impeachment threats.
*Daily move - against G10 rates at 7:30am, 04.12.24
** Indicative rates - interbank rates at 7:30am, 04.12.24
With geopolitics in the news with France and South Korea, USD is likely to be seen as an attractive safe-haven asset to hold.
Furthermore we have two sets of data coming out today that might impact USD further, namely the ADP payrolls and the ISM services numbers. These will help gauge overall economic performance. In addition, Fed Chair Powell will be speaking in the evening alongside the release of the Fed's Beige Book.
GBP has started the day lower after Governor Bailey commented that he sees four rate cuts next year. We also remain wary of events in France and the implications for the EUR.
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