Market Roundup
• US Redbook index YoY,7.8%,7.1% previous.
• US Redbook index MoM,0.1%,-0.3% previous.
• US Oct S&P/Case-Shiller 20 MM SA, 0.4%,0.3% previous.
• US Oct S&P/Case-Shiller 20 MM NSA,0.0%,0.0% previous.
• US Oct S&P/Case-Shiller 20 YY,5.0%,0.1% previous.
• US Dec Richmond Fed Manufacturing Index, -8,14 previous.
• US Dec Richmond Fed Manufacturing Shipment, -25,12 previous.
• Stocks and oil rebound after pre-holiday thumping.
• Trump 'very happy' with Treasury chief Mnuchin -White House adviser.
• Fed Chair’s job is not in Jeopardy-White House adviser.
Looking Ahead - Economic Data
• Dec 27 (00:00 ET/05:00 GMT) Japan Nov Construction Orders YoY,16.5% previous
• Dec 27 (00:00 ET/05:00 GMT) Japan Nov Housing Starts YoY,forecast -0.4%, 0.3% previous
Looking Ahead - Events, Other Releases
• Dec 27 (18:50 ET/23:50 GMT) BoJ to release summary of opinions from board members at its Dec 19-20 policy meeting in Tokyo
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Wednesday, as greenback strengthened after U.S. stocks came off 20-month lows, though uncertainty relating to the U.S. government shutdown and Federal Reserve monetary policy remained a headwind for the greenback. The euro was last down 0.39 percent at $1.1354 at 20:55 GMT. An index that tracks the dollar versus a basket of six major currencies was up 0.48 at 97.05 on Wednesday. Immediate resistance can be seen at 1.1425(Higher Bollinger Band), an upside break can trigger rise towards 1.1482 (100 DMA).On the downside, immediate support is seen at 1.1315 (23.6% retracement level), a break below could take the pair towards 1.1269 (Dec 14th lows).
GBP/USD: The British pound declined against the dollar on Wednesday, as stronger dollar and caution ahead of parliamentary vote in January on the prime minister's Brexit deal weighed on British pound. Trading volume was light with many European markets remaining closed after Christmas. U.S. financial markets reopened after being shut for the holiday. The pound was last at 0.46 percent lower at $1.2640 in late US trade on Wednesday after earlier hitting high at $1.2711. Immediate resistance can be seen at 1.2676 (21 DMA), an upside break can trigger rise towards 1.2811 (50 DMA).On the downside, immediate support is seen at 1.2626 (23.6% retracement level), a break below could take the pair towards 1.2510 (Lower Bollinger Band).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday, as global growth risks and political uncertainty in the United States kept investors away from market. Many of the commodity linked currencies traded in tight ranges, reflecting a combination of low year-end volumes and reluctance to make big bets in the face of deepening gloom over global growth, trade and investment. At 20:55 GMT, the Canadian dollar was last trading nearly unchanged at 1.3574 to the greenback. Immediate resistance can be seen at 1.3617 (Higher Bollinger Band), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, immediate support is seen at 1.3556 (5 DMA), a break below could take the pair towards 1.3488 (9 DMA).
USD/JPY: The U.S. dollar strengthened against the yen on Wednesday, as rally in U.S. equity market boosted demand for the greenback. U.S. stocks gained more than 2 percent as a rebound in technology shares and a jump in retailers led by Amazon.com put the market on pace to snap a four-session losing streak. The dollar was last trading last trading 0.9 percent higher versus the Japanese yen at 111.30. Strong resistance can be seen at 111.62 (38.2% retracement level), an upside break can trigger rise towards 112.15 (50% retracement level).On the downside, immediate support is seen at 110.25 (Daily Low), a break below could take the pair towards 110.00(Psychological level).
Equities Recap
U.S. stocks rebounded sharply on Wednesday, fueled by an Amazon-led surge in retail shares after a steep slide for equities had put the S&P 500 on the brink of a bear market.
Dow Jones closed up by 4.98 percent, S&P 500 ended up 4.95 percent, Nasdaq finished the day up by 5.80 percent.
Treasuries Recap
U.S. Treasury yields rose on Wednesday as Wall Street rebounded from its recent rout and weak demand for $41 billion of five-year government debt supply reduced the appeal of holding the securities.
Benchmark 10-year Treasury yields rose 3 basis points at 2.785 percent after hitting 2.720 percent, the lowest since April 2, earlier Wednesday.
The two-year yield touched 2.540 percent earlier Wednesday, the lowest since July 6, before rising to 2.599 percent, 1 basis point higher than late Monday.
Commodities Recap
Gold pared all its earlier intraday gains on Wednesday, as rejuvenating U.S. equities made safety assets less lucrative to investors, while a stronger dollar further dented appeal for the metal.
Spot gold fell 0.26 percent to $1,265.87 per ounce at (21:00 GMT). It had earlier touched its highest since June 19 at $1,279.06.U.S. gold futures settled up 0.1 percent at $1,273 an ounce.
Oil surged on Wednesday, posting its strongest daily gain in more than two years in a partial rebound from steep losses that pushed crude benchmarks to lows not seen since 2017.
U.S. crude settled at $46.22 a barrel, up $3.69, or 8.7 percent. Even with the day's gains, U.S. crude has still lost nearly 40 percent from its October closing high at more than $76 a barrel.
Brent crude, the global benchmark, rose $4, or 8 percent, to settle at $54.47 a barrel. It earlier fell to $49.93, lowest since July 2017.
