Market Roundup
•Canada Nov Housing Starts 246.0K, 215.0K forecast, 214.9K previous
•Canada Oct Manufacturing Sales (MoM) 0.3% ,0.6% forecast, 1.5% previous
•US Dec NY Empire State Manufacturing Index 4.90, 6.90 forecast, 6.30 previous
•US Nov Export Price Index (MoM) 0.6%, 0.3% forecast,0.2% previous
•US Nov Import Price Index (MoM) 0.1%, 0.3% forecast, -0.1% previous
•US Redbook (MoM) -2.2%,-2.4% previous
•US Redbook (YoY) 2.5%,2.1% previous
•US Nov Capacity Utilization Rate 73.3%,72.9% forecast, 72.8% previous
•US Nov Industrial Production (YoY) -5.50%,-5.34% previous
•US Nov Industrial Production (MoM) 0.4%,0.3% forecast, 1.1% previous
•US Manufacturing Production (MoM) 0.8%,0.3% forecast, 1.0% previous
•New Zealand GlobalDairyTrade Price Index 1.3%,4.3% previous
•US IBD/TIPP Economic Optimism 49.0, 50.0 previous
•Russia Industrial Production (YoY) -2.6%,-4.8%,-5.9% previous
Looking Ahead Economic Data
•23:50 New Zealand Feb Net Debt Forecast 30.20% previous
•23:50 New Zealand Economic Forecast -28.293B previous
•23:50 New Zealand HIA New Home Sales (MoM) -1.3% previous
•23:50 New Zealand Feb Budget Balance -32.031B previous
•00: 30 Japan Dec Manufacturing PMI 48.9 forecast, 49.0 previous
•00: 30 Japan Services PMI 47.8 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Tuesday as investors looked past new restrictions to fight COVID-19 and focused on the likelihood of more U.S. stimulus that would weigh on the dollar. The single currency has rocketed 4% since early November to its highest level since April 2018, in part because of broad-based selling of the U.S. dollar and as investors bet a vast European recovery fund package will lift the regions’ economies. The euro was up 0.14 percent at $1.2160. Immediate resistance can be seen at 1.2153 (23.6% fib), an upside break can trigger rise towards 1.2200 (Psychological level).On the downside, immediate support is seen at 1.2131(Daily low), a break below could take the pair towards 1.2102 (38.2% fib).
GBP/USD: Sterling gained against the dollar on Tuesday as market participants grew more optimistic about the chances of a Brexit deal, but implied volatility gauges pointed to further price swings ahead as the Dec. 31 Brexit deadline approaches. Sterling dropped to as low as $1.3135 last Friday and implied volatility surged to its highest since March, when British Prime Minister Boris Johnson said a no-deal was very very likely.It then rebounded to as high as $1.3444 on Monday .At 12:40 GMT on Tuesday, the pound was at $1.3381 versus a slightly stronger dollar. Immediate resistance can be seen at 1.3396(23.6%fib), an upside break can trigger rise towards 1.3445 (Dec 14th high).On the downside, immediate support is seen at 1.3328 (38.2%fib ), a break below could take the pair towards 1.3272 (50%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Tuesday as progress toward U.S. coronavirus relief aid buoyed investor sentiment and domestic data showed housing starts jumping in November. Canada sends about 75% of its exports to the United States, including oil. U.S. crude prices were up 0.9% at $47.40 a barrel as optimism from the rollout of coronavirus vaccines balanced out tighter lockdowns in Europe and forecasts of a slower demand recovery. The Canadian dollar was trading 0.1% higher at 1.2741 to the greenback .Immediate resistance can be seen at 1.2750 (38.2%fib), an upside break can trigger rise towards 1.2802 (50%fib).On the downside, immediate support is seen at 1.2687 (23.6%fib), a break below could take the pair towards 1.2600 (Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as concerns about increasing COVID-19 deaths, infections and lockdowns increased demand form yen. COVID-19 deaths in the U.S. are occurring at a record rate 2,462 per day on a seven-day average. Meanwhile, new waves of the pandemic forced Germany, the Netherlands and London back to stricter lockdowns while cases in Japan and South Korea also surged. Strong resistance can be seen at 104.21(21EMA), an upside break can trigger rise towards 104.34 (38.2%fib).On the downside, immediate support is seen at 103.88 (23.6%fib), a break below could take the pair towards 103.47 (14th Dec).
Equities Recap
European shares rose on Tuesday, with optimism from vaccine roll-outs helping investors shake off nervous early trades as rising COVID-19 cases result in tighter curbs across the continent.
UK's benchmark FTSE 100 closed up by 1.06 percent, Germany's Dax ended down by 0.28 percent, France’s CAC finished the day up by 0.05 percent.
Wall Street showed signs of a Santa rally on Tuesday, with the Nasdaq closing at a record high, helped by optimism about a potential government stimulus to protect the economy from the coronavirus pandemic.
Dow Jones closed up by 1.13% percent, S&P 500 closed up by 1.29 % percent, Nasdaq settled up by 1.25% percent.
Treasuries Recap
Longer-term U.S. Treasury yields were higher on Tuesday as U.S. central bank officials began a two-day meeting and investors looked for progress in congressional spending negotiations in Washington.
The benchmark 10-year yield was up 2.7 basis points in afternoon trading at 0.9179%.
Commodities Recap
Gold gained 1% on Tuesday, driven by market expectations of additional monetary and fiscal stimulus as climbing COVID-19 cases prompted fresh global restrictions with focus also turning to the U.S. Federal Reserve's policy meeting.
Spot gold was up 0.9% to $1,844.10 per ounce by 1255 GMT, while U.S. gold futures rose 0.9% to $1,848.70.
Oil prices rose on Tuesday as investors focused on the rollout of COVID-19 vaccines, looking past tightening lockdowns in Europe and forecasts for a slower-than-expected recovery in fuel demand.
Brent crude settled at $50.76 a barrel, rising 47 cents, or 0.9%. U.S. West Texas Intermediate (WTI) crude settled at $47.62 a barrel, gaining 1.3%, or 63 cents.
