Euro rose in American trade off late November lows against the dollar, following earlier data from the euro zone and the US today. 

As of 05:19 GMT EUR/USD rose 0.28% to 1.1376, with a session-high at 1.1413, and a low at 1.1321.

Earlier German data showed factory orders rose 0.3%, compared to a 0.1% increase in September, and beating estimates of a 0.4% drop. 

EU Chief Brexit negotiator Michel Barnier said in earlier remarks that the offer presented to Britain is unmatched, as it contains damage to both sides, with the approval of the British Parliament the only thing now standing before defining the future relationship between the EU and Britain. 

Moving to Italy, Prime Minister Giuseppe Conte said government meetings have been held to discuss the budget, adding to agreement has been reached yet on cutting reform, with his deputies refusing to cut the budget deficit below 2%, even though he seeks a 1.9% target for the deficit in accordance with EU rules. 

US Data 

The US private sector added 179 thousand in November, missing estimates of 195K, and compared to 225K in October, revised from 227K. 

US productivity rose 2.3% as expected, up from 0.9% in the second quarter, while labor costs rose 0.9%, slowing down from 1% in the second quarter. 

US trade deficit widened to $55.5 billion from $54.6 in September, missing estimates of $55.2 billion, while unemployment claims fell by 4 thousand in the week ending December 1 to 231K. 

Continuing claims for the week ending November 24 fell 74 thousand to 1.631 million.

The US services PMI rose to 60.7 in November from 60.3 in October, besting estimates of 59.1. 

Two thirds of American GDP relies on services, hence the vital importance of services PMIs to markets. 

Finally, factory orders fell 2.1% in October, compared to a 0.2% increase in September, and missing estimates of a 1.9% increase. 

The Energy Information Administration reported a US crude inventory deficit of 7.3 million barrels in the week ending November 30, considerably past estimates of a 1.3 million decline, with total stocks now down to 443.2 million barrels, still 6% above five-year averages. 

Gasoline stocks are up 1.7 million barrels, making them 4% above averages, while distillate stocks, including heating fuel, rose 3.8 million barrels, still 5% below averages.

Rating agency Moody's Investors Service said there are several factors that may positively impact the UAE banks and other GCC banks in the coming period, including the imminent “Expo 2020 Dubai”.

The ratings agency assigned Arabian Gulf banks a stable outlook on the back of improving operating conditions, strong capital and weakening but still solid lending.

Banks in UAE, Kuwait, and Saudi Arabia will remain resilient but fiscal pressures will weigh on banks in Oman and Bahrain, where oil prices will remain below the levels needed to balance state budgets, Moody's said in a report.

"Current oil prices will support increased government spending, and stimulus packages such as UAE's Expo 2020, the Saudi National Transformation Plan...will underpin banks' stable financial performance," said Nitish Bhojnagarwala, a Moody's vice president and senior credit officer.

Moody’s also said GCC banks' credit growth will recover as government spending stimulates the economies and spurs private-sector growth.

Fitch Ratings said it forecasts the growth in the gross domestic product (GDP) of the Emirate of Abu Dhabi to reach 2.5% in 2019, projecting the emirate’s government to achieve a financial surplus of 0.6% of GDP in 2019.

The emirate is also expected to record a current account surplus of 3.7%, with the value of overseas sovereign net assets reaching 193% of 2019 GDP.

Meanwhile, the agency expected the economy of Ras Al-Khaimah to grow by 3.5% in 2019, saying it assigned the emirate a “A” rating, according to Al-Khaleej newspaper.

In late November, Fitch affirmed Abu Dhabi’s long-term, local and foreign-currency sovereign rating at “AA”, with Stable outlook.

S&P earlier affirmed the emirate’s long and short-term ratings at “AA/A-1+”, with Stable outlook.