Market Roundup
- Hotly anticipated bitcoin futures surge 21 percent on debut
- US Senator Collins says undecided on final tax bill vote
- Britain's May hails new optimism in Brexit talks after deal
- UK consumers cut spending in run-up to Christmas - Visa
- After Brexit, UK aims for trade deal with EU that tops Canada pact
- Japan to revise up growth forecasts, big mfg mood improves in Q4
- Japan Nov money supply M2 +4.0% y/y, M3 +3.4%, broadest liquidity +3.9%
- KKR’s tender offer for Hitachi Kokusai a success, $2.2 bln deal - Nikkei
- New Zealand will shortly move to extend bright line test –finmin
- NZ Gov appoints Adrian Orr as next Reserve Bank governor
- Speculators increase net-short dollar bets to $4.28 billion –CFTC
Economic Data Ahead
No Major Economic Data Releases
Key Events Ahead
- (0300 ET/0800 GMT) BoF's de Galhau opens a conference – Paris
FX Beat
DXY: The dollar index eased as sluggish inflation clouded the U.S. Federal Reserve's policy outlook. The greenback against a basket of currencies traded 0.1 percent down at 93.82, having touched a high of 93.90 on Friday, its highest since Nov. 22. FxWirePro's Hourly Dollar Strength Index stood at 96.78 (Slightly Bullish) by 0500 GMT.
EUR/USD: The euro steadied after falling to an over 2-week low in the previous session, as the greenback eased after data released on Friday showed U.S. average hourly wages rose 2.5 percent on the year, up from 2.4 percent previously, but missing forecasts of 2.7 percent. The European currency traded 0.1 percent up at 1.1779, having touched a low of 1.1730 on Friday, its lowest since Nov. 21. FxWirePro's Hourly Euro Strength Index stood at 13.62 (Neutral) by 0400 GMT. Investors’ attention will remain on data from the Eurozone economies, ahead of U.S. JOLT Job opening report. Immediate resistance is located at 1.1805 (10-DMA), a break above targets 1.1841. On the downside, support is seen at 1.1732 (Nov. 22 Low), a break below could drag it lower 1.1712 (Nov 21. Low).
USD/JPY: The dollar rallied to a near 1-month high ahead of the U.S. Federal Reserve's two-day policy meeting, where it is widely expected to raise interest rates and is seen as likely to tighten two or three times in 2018. The major was trading 0.1 percent up at 113.55, having hit a high of 113.68, its highest since Nov. 14. FxWirePro's Hourly Yen Strength Index stood at -89.03 (Slightly Bearish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. U.S. JOLT Job opening report for further momentum. Immediate resistance is located at 113.91, a break above targets 114.34. On the downside, support is seen at 113.30, a break below could take it near 112.75 (5-DMA).
GBP/USD: Sterling steadied after Britain and the European Union reached an accord on Friday that paved the way for talks on future trade deals, easing immediate pressure on Prime Minister Theresa May. The major traded 0.1 percent up at 1.3393, having hit a low of 1.3319 on Thursday, it’s lowest since Nov. 28. FxWirePro's Hourly Sterling Strength Index stood at -13.16 (Neutral) by 0400 GMT. Investors’ focus will remain the U.S. fundamental drivers, amid a lack of economic data from the UK docket. Immediate resistance is located at 1.3433 (5-DMA), a break above could take it near 1.3500. On the downside, support is seen at 1.3355 (Previous Session Low), a break below targets 1.3319 (Dec 7 Low). Against the euro, the pound was trading 0.1 percent down at 87.61 pence, having hit a high of 86.89 pence on Friday, it’s highest since Jun. 9.
AUD/USD: The Australian dollar rose after falling for three consecutive sessions, as investors cautiously waited to see what the Federal Reserve would project for future U.S. rate rises at its policy meeting this week. The Aussie trades 0.3 percent up at 0.7527, having hit a low of 0.7501 the prior session; it’s lowest since Jun. 7. FxWirePro's Hourly Aussie Strength Index stood at -8.93 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7501 (Previous Session Low), a break below targets 0.7457 (Jun. 6 Low). On the upside, resistance is located at 0.7536, a break above could take it near 0.7560.
NZD/USD: The New Zealand dollar rallied above the 0.6900 handle after data released overnight showed NZ electronic card retail sales rose at an annualized rate of 4.3 percent in November, surpassing previous reading of 1.3 percent. The Kiwi trades 1.0 percent up at 0.6904, having touched a high of 0.6906 earlier, its highest level since Dec. 6. FxWirePro's Hourly Kiwi Strength Index was at 89.97 (Slightly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6929 (Nov. 29 High), a break above could take it near 0.6945 (Nov. 28 High). On the downside, support is seen at 0.6822 (Previous Session Low), a break below could drag it lower 0.6794 (Nov. 20 Low).
Equities Recap
Asian shares traded above a two-month trough amid optimism about global growth, while the dollar rose to a near 1-month high against the yen, underpinned by expectations of higher U.S. interest rates.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2 percent.
Tokyo's Nikkei gained 0.4 percent to 22,892.64 points, Australia's S&P/ASX 200 index rallied 0.1 percent to 5,998.30 points and South Korea's KOSPI climbed 0.3 percent to 2,470.79 points.
Shanghai composite index rose 0.6 percent to 3,309.50 points, while CSI300 index was trading 1.2 percent up at 4,050.74 points.
Hong Kong’s Hang Seng was trading 0.8 percent higher at 28,858.83 points. Taiwan shares added 0.8 percent to 10,473.09 points.
Commodities Recap
Crude oil prices declined as the latest rise in the U.S. rig count suggested a further increase in the American production, undermining efforts led by OPEC to tighten markets. International benchmark Brent crude was trading 0.3 percent down at $63.13 per barrel by 0451 GMT, having hit a low of $61.11 on Wednesday, its lowest since Nov. 17. U.S. West Texas Intermediate was trading 0.3 percent lower at $57.15 a barrel, after falling as low as $55.79 on Thursday, its lowest since Nov. 17.
Gold prices steadied, holding above a four-month low hit in the previous session, as investors turned cautious ahead of Federal Reserve monetary policy meeting later in the week. Spot gold was little changed at $1,248.57 an ounce by 0456 GMT, after hitting its lowest since July 26 at $1,243.13 on Friday. U.S. gold futures were 0.1 percent higher at $1,250.10.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.383 percent lower by 0.001 bps, while 5-year yield was 0.002 bps down at 2.143 percent.
The Japanese government bonds inched lower slightly as investors remained optimistic about the Federal Reserve interest rate hike on Wednesday and followed by three more next year. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose ½ bais point to 0.055 percent, the yield on long-term 40-year rose nearly 1/2 basis point to 0.978 percent and the yield on short-term 2-year traded nearly flat at -0.145 percent.
The Australian government bonds slumped following weakness in the U.S. Treasuries as investors remained optimistic about December and three more rate hike by the Federal Reserve next year. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 3 basis points to 2.566 percent, the yield on the long-term 30-year note also climbed 3-1/2 basis points to 3.300 percent and the yield on short-term 2-year surged 2 basis points to 1.832 percent.
