Market Roundup
•US Nov Core PCE Price Index (YoY) 1.4%, 1.5% forecast ,1.4% previous
•Canada Oct GDP (MoM) 0.3% forecast , 0.8% previous
•US Continuing Jobless Claims 5,337K, 5,558K forecast 5,508K previous
•US Jobless Claims 4-Week Avg 818.25K ,812.50K previous
•US Initial Jobless Claims 803K, 885K forecast, 885K previous
•US Core PCE Price Index (MoM) 0.0% %, 0.1% forecast, forecast, 0.2% previous
•US PCE Nov price index (MoM) 0.0% ,0.2% previous
•US PCE Price index (YoY) 1.1, 1.2 previous
•U S Real Personal Consumption (MoM) -0.4%, 0.5% previous
•US Nov Personal Spending (MoM) -0.4% ,-0.2% forecast, 0.5% previous
•US Nov Personal Income (MoM) -1.1% ,-0.3% forecast, -0.7% previous
•US Oct House Price Index307.0, 302.6 previous
•US Oct House Price Index (YoY) 10.2%, 9.1% previous
•US Dec Michigan 5-Year Inflation Expectations 2.50% ,2.50% forecast , 2.50% previous
•US Dec Michigan Consumer Expectations 74.6, 74.7 forecast , 74.7 previous
•US Dec Michigan Consumer Sentiment 80.7 , 81.3 forecast , 81.4 previous
•US Nov New Home Sales 841K, 995K forecast , 999K previous
•US Nov New Home Sales (MoM) -0.3% forecast , -0.3% previous
•US Crude Oil Inventories -1.125M , -3.186M forecast, -3.135M previous
•US Natural Gas Storage-160B forecast, -122B previous
Currency Summaries
EUR/USD: The euro gained against dollar on Wednesday as foreign exchange traders looked beyond U.S. President Donald Trump’s threat not to approve a $892 billion COVID-19 aid package.Trump said the long-awaited stimulus package should be amended to increase the amount in the stimulus checks potentially disrupting the bill. At 1230 GMT, the dollar was 0.1% lower against a basket of currencies. The euro climbed 0.2% to $1.2183. Immediate resistance can be seen at 1.2218(14DMA), an upside break can trigger rise towards 1.2274(23.6%fib).On the downside, immediate support is seen at 1.2144 (38.2%fib), a break below could take the pair towards 1.2114(20DMA).
GBP/USD: Sterling firmed against dollar on Wednesday on signs that Britain and the European Union were on the brink of clinching a deal to govern trade ties. A deal is imminent and could be agreed as early as Wednesday evening.Earlier, EU member states began to prepare procedures to put in place a new trade deal with Britain from Jan. 1, sources in the bloc said, indicating a deal was imminent. The pound which had earlier snapped a three-day losing streak on the lifting of a French border blockage, extended gains to $1.3569, up more than 1.3% on the day.Immediate resistance can be seen at 1.3499(23.6%fib), an upside break can trigger rise towards 1.3570(Daily high).On the downside, immediate support is seen at 1.3510 (38.2%fib), a break below could take the pair towards 1.3226 (61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday along with gains for oil and stocks and after domestic data showed the economy expanded more-than-expected in October.The Canadian economy grew by 0.4% in October from September, which surpassed the 0.3% pace economists had forecast. A flash estimate for November showed further expansion of 0.4%. The Canadian dollar was trading 0.2% higher at 1.2879 to the greenback, or 77.65 U.S. cents, having traded in a range of 1.2865 to 1.2914. Immediate resistance can be seen at 1.2895 (50%fib), an upside break can trigger rise towards 1.2951 (38.2%fib).On the downside, immediate support is seen at 1.2852 (61.8%fib), a break below could take the pair towards 1.2824(5 DMA).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday after gaining for three straight sessions, as risk appetite rose on the expectation of an imminent Brexit trade deal between the UK and the European Union. The dollar index has weakened more than 6% this year as investors bet the U.S. Federal Reserve will keep its monetary policy ultra-accommodative. Expectations for further declines by the dollar are helping Japanese yen.Strong resistance can be seen at 103.66 (50%fib), an upside break can trigger rise towards 103.86 (61.8%fib).On the downside, immediate support is seen at 103.46 (38.2%fib), a break below could take the pair towards 103.21 (23.6%fib).
Equities Recap
European shares logged yet another day of strong gains on Wednesday, making up almost all of the losses at the start of the week, cheered by signs of an imminent Brexit trade deal.
UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended down by 1.26 percent, France’s CAC finished the day down by 1.11 percent.
The S&P 500 dipped in choppy trading on Tuesday as the top U.S. infectious disease expert warned Congress that a premature opening of the nation’s economy could lead to additional outbreaks of the novel coronavirus.
Dow Jones closed down by 1.89% percent, S&P 500 closed down by 2.05% percent, Nasdaq settled down by 2.06% percent.
Treasuries Recap
U.S. Treasury yields jumped on Wednesday and a key part of the yield curve reached its steepest in more than three years as Britain appeared to be close to a deal to leave the European Union, and as France reopened its border with Britain.
Benchmark 10-year yields rose 4 basis points to 0.956%, after earlier rising to 0.973%, the highest since Dec. 7.
Commodities Recap
Gold prices rose on Wednesday, helped by a weaker dollar and as investors remained optimistic about a U.S. stimulus package even after President Donald Trump threatened not to sign the pandemic relief bill.
Spot gold rose 0.4% to $1,867.47 per ounce by 0804 GMT, while U.S. gold futures were steady at $1,870.20.
Oil prices rose more than 2% on Wednesday, boosted by draws in U.S. inventories of crude, gasoline and distillates that lifted investors’ hopes for some return in fuel demand.
Brent crude futures rose $1.12, or 2.2%, to settle at $51.20 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose $1.1, or 2.3%, to settle at $48.12 a barrel.
