Market Roundup]
• Russia Dec CPI (YoY) 3.0%,3.1% forecast, 3.5% previous
• Russia Dec CPI (MoM) 0.4%, 0.4% forecast 0.3% previous
• US Redbook (YoY) 7.8%, 6.2% previous
• US Redbook (MoM) -2.8%,-3.4% previous
• US Oct House Price Index (YoY) 5.0%,5.1% previous
• US Oct House Price Index (MoM) 0.2%, 0.6% previous
• US Oct House Price Index (MoM) 280.2, 279.2 previous
• US Oct S&P/CS HPI Composite - 20 s.a. (MoM) 0.4%,0.4% forecast, 0.3% previous
• US Dec CB Consumer Confidence 126.5, 128.2 forecast, 126.8 previous
• US Dec Dallas Fed Services Revenues 17.9, 12.2 previous
• US Dec Texas Services Sector Outlook 13.5, 4.7 previous
Looking Ahead - Economic Data (GMT)
• 22:00 Australia Manufacturing PMI 49.4, 49.9 previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events.
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Tuesday, as investor confidence in global growth prospects and the Phase 1 U.S.-China trade deal spurred a risk-on move. U.S. President Donald Trump said on Tuesday that the first phase of an American trade deal with China would be signed on Jan. 15 at the White House. The dollar index was down 0.36% to 96.388, its fourth consecutive session in the red and its weakest level since July 1. The Phase 1 trade agreement, which was reached earlier in December, has reduced demand for the safe-haven currency, pulling the dollar down 1.92% in the last month. Immediate resistance can be seen at 1.1240 (Daily high), an upside break can trigger rise towards 1.1282 (19th July high).On the downside, immediate support is seen at 1.1154 (5 DMA), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: The British hovered around the two-week high against the dollar on Tuesday as the possibility of a ‘no-deal’ Brexit at the end of 2020 kept any gains subdued. Sterling has gained around 3.5% against the dollar in 2019 and 5.4% versus the euro as fears of an imminent disorderly exit from the European Union eased and then lifted with the passing of Johnson’s Brexit withdrawal agreement in parliament. The pound galloped 0.8% to as high as at $1.3212 and was 0.5% stronger against the euro at 85 pence. Immediate resistance can be seen at 1.3249 (Daily High), an upside break can trigger rise towards 1.3364 (Higher BB).On the downside, immediate support is seen at 1.3094 (Daily low), a break below could take the pair towards 1.3000 (Psychological level).
USD/CAD: The Canadian dollar strengthened to a 14-month high against its U.S. counterpart on Tuesday as data from China supported the view that the global economy is recovering, pushing the loonie's annual rally to 5%, the biggest of any G10 currency. Manufacturing activity in China expanded for a second straight month in December as seasonal demand and signs of progress in trade talks with Washington boosted factories' output and order books. The Canadian dollar was trading 0.5% higher at 1.3000 to the greenback, or 76.92 U.S. cents. The currency notched its strongest intraday level since Oct. 24, 2018 at 1.2993. Immediate resistance can be seen at 1.3069 (Daily High), an upside break can trigger rise towards 1.3121 (27th Dec high).On the downside, immediate support is seen at 1.2961 (Daily Low), a break below could take the pair towards 1.2900 (Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday, as investors favored riskier assets, led by renewed optimism about global growth. The greenback was off 0.2% at 108.64 against the Japanese yen JPY=, the weakest since Dec. 12 and on track for its third straight session of losses. The dollar index , which measures the currency against a basket of rivals, was a shade weaker at 96.695.On Friday, the index had suffered its biggest one-day fall since March, which left its gains for the year at about 0.5%, compared with returns of 4.4% in 2018. It is now on track for the smallest rise since 2013. Strong resistance can be seen at 109.45 (Dec 30th high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.14 (Lower BB), a break below could take the pair towards 107.90 (Nov 1st Low).
Equities Recap
European shares looked set to end the decade with a whimper on Tuesday as investors locked in gains after a record rally that was fuelled by optimism around trade and easing fears of a global recession.
The UK's benchmark FTSE 100 closed down by 0.59 percent, Germany's Dax ended down by 0.66 percent, and France’s CAC finished the up by 0.07 percent.
U.S. stock index futures dipped on Tuesday after retreating from record highs in the previous session, as a Wall Street rally, fueled by optimism around U.S.-China trade progress, fizzled out in the final days of the decade.
( GMT 1:00) Dow Jones was last trading down by 0.20 percent, S&P 500 was last trading down at 0.12 percent, Nasdaq was last trading down by 0.0 percent.
Treasuries Recap
Longer-dated U.S. Treasuries are on track to post their best return since 2014 on Tuesday, after concerns about the slowing U.S. economy prompted the Federal Reserve to cut interest rates three times this year.
In 2014, 30-year bonds returned 29.43% and 10-year notes returned 10.72%.
Commodities Recap
Gold prices rose on Tuesday to a three-month high as the dollar weakened, and were set to mark their best year in nearly a decade on the back of U.S.-China trade uncertainties, which pressured markets and triggered fears of a possible recession.
Spot gold rose 0.5% to $1,523.29 per ounce as of 10:34 a.m. ET (1534 GMT), having earlier hit a three-month high of $1,525.20.U.S. gold futures were up 0.5% at $1,526.30 an ounce.
Oil prices fell about 1% on the last trading day of the decade on Tuesday but were still on track for monthly and annual gains, supported by a thaw in the prolonged U.S.-China trade row and Middle East unrest.
Brent has gained about 23% in 2019 and WTI has risen 35%. Both benchmarks are set for their biggest yearly gains in three years
