Forex Today: Extra US labour data and Powell to drive the mood

A corrective knee-jerk saw the Greenback relinquish part of Monday's strong advance amid mixed US yields and despite a positive surprise from the US labour market ahead of further critical data releases.

Here is what you need to know on Wednesday, December 4:

The US Dollar Index (DXY) faced some selling pressure, edging closer to the 106.00 region amid mixed yields and cautious investor sentiment ahead of Powell's speech and key labour market data.The weekly MBA Mortgage Applications are due in the first turn, seconded by the ADP Employment Change report, the final S&P Global Services PMI, the ISM Services PMI, Factory Orders, the EIA's weekly report on US crude oil inventories and the Fed's Beige Book. In addition, Chief Powell will participate in a discussion panel, seconded by the speech by Musalem.

EUR/USD managed to shrug off some of Monday's losses and regained the area beyond the 1.0500 hurdle. The final HCOB Services PMI in Germany and the euro bloc are due, along with Producer Prices in the euro zone. Additionally, the ECB's Lagarde and Cipollone are expected to speak.

GBP/USD advanced markedly and came just pips away from the key 1.2700 the figure on the back of the weaker Greenback. The final S&P Global Services PMI comes next, along with the speech by the BoE's Bailey.

USD/JPY extended further its ongoing march south, breaking below the 149.00 support to print new two-month lows. The final Jibun Bank Services PMI will only be published on the domestic docket.

AUD/USD experienced a decent rebound, although a convincing breakout of the 0.6500 barrier remained elusive. An interesting calendar in Oz will feature the Q3 GDP Growth Rate.

The resumption of geopolitical concerns in the Middle East propelled the barrel of WTI past the $70.00 mark, or multi-day highs.

Gold prices printed humble gains and maintained its gradual recovery in place for yet another day, this time surpassing the $2,650 mark per troy ounce. Silver advanced markedly to multi-day peaks north of the $31.00 mark per ounce amid the widespread recovery in the commodity complex.