Market Roundup
•US Nov Goods Trade Balance -84.82B, -80.42B previous
•US Nov Retail Inventories Ex Auto -0.1% ,0.8% previous
•US Wholesale Inventories (MoM) -0.3% ,. 0.8% previous
•US Dec Chicago PMI 57.0 forecast 59.7, 57.00 , 58.2 previous
•US Nov Pending Home Sales Index 125.7, 128.9 previous
•US Nov Pending Home Sales (MoM) -2.6%,0.2%,-1.1% previous
•US Cushing Crude Oil Inventories-0.026M
Looking Ahead - Economic Data (GMT)
•16:30 China Dec Non-Manufacturing PMI 56.4 previous
•16:30 China Dec Manufacturing PMI 52.0 forecast, 52.1 previous
•16:30 China Dec Composite PMI 55.7 previous
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro rose against dollar on Wednesday as investors looked past rising COVID-19 infections and the latest delay in U.S. fiscal stimulus talks and bet on an economic recovery in 2021. Market sentiment was upbeat as investors remained optimistic that a fiscal stimulus deal will be eventually reached and that COVID-19 vaccines will facilitate a global economic recovery, lessening demand for the safe-haven dollar. The euro was up at $1.22715. Immediate resistance can be seen at 1.2300(Psychological level), an upside break can trigger rise towards 1.2332(Higher BB).On the downside, immediate support is seen at 1.2212(11DMA), a break below could take the pair towards 1.2183 (38.2%fib).
GBP/USD: Sterling rose against dollar on Wednesday after Britain approved a coronavirus vaccine developed by AstraZeneca and Oxford University, though surging COVID-19 cases in the country kept investors cautious. The regulatory approval is a welcome boost for AstraZeneca, which has been accused of lack of clarity about the results from late-stage trials. is struggling to contain the coronavirus pandemic, with the country recording one of the world's highest death tolls of around 65,000 by mid-December. Immediate resistance can be seen at 1.3623 (23.6%fib), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, immediate support is seen at 1.3522(38.2%fib), a break below could take the pair towards 1.3485 (21DMA).
USD/CAD: The Canadian dollar eose on Wednesday against its U.S. counterpart, higher oil prices and Britain’s approval of another coronavirus shot lifted Canadian dollar. Britain approved a coronavirus vaccine developed by Oxford University and AstraZeneca in the latest development in the rapid progression, testing, approval and deployment of drugs to battle the disease.The dollar’s weakness continued. It dropped again on Wednesday, the first day where settlement of trades will be in 2021.The U.S. dollar index hit its lowest since April 2018 before recovering a little ground. It was last down 0.12%. Immediate resistance can be seen at 1.2793 (11DMA), an upside break can trigger rise towards 1.2860 (38.2%fib).On the downside, immediate support is seen at 1.2726 (23.6$fib), a break below could take the pair towards 1.2663(Lower BB).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday as investors weighed news that U.S. Senate Majority Leader Mitch McConnell postponed a vote on increased pandemic aid checks to individuals. McConnell on Tuesday delayed a vote on President Donald Trump's demand to increase COVID-19 relief checks to $2,000, in a rare challenge to his fellow Republican three weeks before he vacates the White House. Coronavirus cases continue to soar globally, with Britain reporting the highest number of new infections since mass testing began in mid-2020, while the first case of a new infectious virus variant was found in the United States .Strong resistance can be seen at 103.05 (38.2%fib), an upside break can trigger rise towards 103.91 (50%fib).On the downside, immediate support is seen at 102.88 (23.6%fib), a break below could take the pair towards 102.00 (Psychological level).
Equities Recap
European stocks inched higher on Wednesday as UK’s approval of AstraZeneca’s COVID-19 vaccine, bets of more U.S. fiscal aid and large-scale vaccination efforts spurred hopes of a strong recovery in the global economy next year
UK's benchmark FTSE 100 closed down by 0.70 percent, Germany's Dax ended down by 0.31percent, France’s CAC finished the day down by 0.22 percent.
Wall Street ended the session in positive territory and the dollar dipped to its lowest in more than two years on Wednesday, the penultimate trading day in a remarkable year of pandemic, recession and recovery.
Dow Jones closed up by 0.24% percent, S&P 500 closed up by 0.13% percent, Nasdaq settled down by 0.15% percent.
Treasuries Recap
The U.S. Treasury yield curve flattened on Wednesday afternoon as traders bought longer-dated debt to rebalance their portfolios ahead of the month-end.
The 30-year yield was last down 1.4 basis points at 1.660%, pulling the spread between five- and 30-year yields flatter to 129.5 basis points. That spread had hit a high of 131.2 basis points earlier in the day.
The benchmark 10-year yield was a basis point lower at 0.925%, bringing the two-year, 10-year spread to 80.3 basis points.
Commodities
Gold prices edged higher on Wednesday, as the prospect of increased fiscal aid pushed the dollar to its lowest in more than two years, although global COVID-19 vaccine rollouts and increased risk appetite limited bullion’s gains.
Spot gold rose 0.4% to $1,885.79 per ounce by 11:57 a.m. EST (1657 GMT). U.S. gold futures were up 0.4% at $1,890.40.
Oil prices settled higher on Wednesday, supported by a draw in U.S. crude inventories and Britain’s approval of a second coronavirus vaccine but pressured by swelling year-over-year supply.
Brent crude futures settled up 25 cents to $51.34 a barrel, off the session high of $51.56 and well lower than the $66 price that started the year.
U.S. West Texas Intermediate (WTI) crude settled up 40 cents to trade at $48.40, substantially down from about $62 at the start of 2020.
