Private sector employment growth in the United States in November was lower than expected Safe haven demand drives the US dollar up

Private sector employment growth in the United States in November was lower than expected

Safe haven demand drives the US dollar up

On Wednesday (December 6th), the ADP report, which fell short of expectations, once again confirmed the weakness of the job market, and US Treasury yields continued to decline. The 10-year US Treasury yield approached the 4.1% mark, the lowest level since September 1st, closing at 4.167%; The two-year US Treasury yield, which is more sensitive to the Federal Reserve's policy interest rates, gave up all its intraday gains during trading and ultimately closed slightly higher at 4.597%.

The high volume of US exports and doubts about OPEC+'s ability to fulfill production reduction plans have raised concerns about oversupply in the market, with oil prices falling for the fifth consecutive trading day, reaching their lowest level since early July. WTI January crude oil futures closed Wednesday down $2.94, a decrease of 4.07%, at $69.38 per barrel. As of publication, WTI futures are currently trading at $69.29 per barrel, a decrease of 4.19%. Brent crude oil futures settled at $74.30 per barrel in February 2024, marking the first time since the end of June this year that it fell below $75 per barrel, a decrease of 3.76% or $2.9. As of the time of publication, the current price of oil futures is 74.28 US dollars per barrel, a decrease of 3.79%.

As the market fully priced the prospect of the Federal Reserve's interest rate cut while expectations for other central banks continued to deepen, the US dollar index stood at 104 and ultimately closed up 0.309% at 103.95.