Market Roundup
- Turkish Dec manufacturing confidence 91.5 points vs 92.8 points in Nov - Central Bank
- Turkish December capacity utilisation rate 74.1 percent vs 74.1 pct in November - Central Bank
- Singapore Nov 2018 manufacturing output mm increase to 2.8 % vs prev 2.4 % (revised from 2 %)
- Singapore Nov 2018 manufacturing output yy increase to 7.6 % vs prev 5.5 % (revised from 4.3 %)
- China Nov services trade deficit $20.0 bln - FX regulator
- China Jan-Nov services trade deficit $268.9 bln - FX regulator
- Japan chief govt spokesman: Japan'S economic fundamentals firm
- Japan PM Abe: Japan will see sales tax hike rate raised to 10 pct next year, govt plans to take sufficient steps to mitigate pain on economy
- Japan'S Suga: Japan wants to ensure global economy maintains rules for free and fair trade
- Russia C.Bank ups forecast for 2018-end liquidity surplus to 2.0-2.3 trln roubles from 1.7-2.1 trln roubles
- Russia C.Bank sees liquidity surplus in banking sector at 2.2-2.8 trln roubles as of end 2019
- Russian defence ministry says Israel strikes on Syria directly threatened two civilian flights - IFX
Economic Data Ahead
- (0855 ET/ 1355 GMT) USD Redbook index MoM)(Previous -0.3%)
- (0855 ET/ 1355 GMT) USD Redbook index YoY (Previous 7.1%)
- (0900 ET/ 1400 GMT) USD S&P/Case-Shiller Home Price Indices YoY Oct (Forecast 4.9%) (Previous 5.1%)
- (1000 ET/ 1500 GMT) USD Richmond Fed Manufacturing Index Dec (Forecast 16) (Previous 14)
- (1600 ET/ 2130 GMT) USD API Weekly Crude Oil Stock (Previous 3.45M)
Key Events Ahead
- 18:00 USD 5-Year Note Auction
FX Beat
DXY: Dollar pressured with US yields near 9-month lows, holds on to minor gains above 55-EMA support. DXY was trading 0.15% higher at 96.72 at 1100 GMT.
EUR/USD: EUR/USD was trading rangebound on the day at 1.1389. The pair is extending sideways along 55-EMA. Price action lacks clear directional bias. Breakout at 55-EMA will see gains upto next major resistance at 110-EMA at 1.1497. On the downside, break below 20-DMA will see weakness till 1.13 (Lower Bollinger Band).
USD/JPY: USD/JPY edges higher from new 4-month lows at 110.26. Bias remains bearish. Momentum studies are highly bearish. Close below 200-DMA will see drag till 61.8% Fib at 108.41. Partial US government shutdown/falling US bond yields keep the USD subdued. Sentiment in financial markets remained fragile on fears of a global economic slowdown and continued underpinning the Japanese Yen's safe-haven demand. Retrace above 200-DMA could see some upside.
GBP/USD: Cable struggles at 21-EMA, trades 0.12% lower on the day at 1.2685 at 1130 GMT. Major trend in the pair remains bearish. Recovery attempts struggling to gain momentum at 21-EMA resistance. Price action is below major moving averages and the daily cloud and rejection at 21-EMA will see resumption of weakness. Dip till Lower Bollinger Band at 1.2511 then likely. Decisive breakout at 21-EMA will see upside till 55-EMA at 1.2805.
NZD/USD: NZD/USD pauses downside at cloud support. Intraday bias for the pair remains bearish. Break below cloud raises scope for further downside. The major has broken channel base support and upside remains capped at 5-DMA which is sharply lower. Breach at cloud support will see weakness till 61.8% Fib at 0.6632. On the flipside, retrace into channel and break above 200-DMA could see upside.
Equities Recap
The major markets in Europe, including France, Germany, U.K. and Switzerland remain shut on Wednesday for Boxing Day holiday.
Major European markets on track to end 2018 at 2-year lows. Germany's export-oriented DAX index is set to be the worst performer, down more than 17 percent so far in 2018. France's CAC is down 12.5 percent, the FTSE 100 down 13.1 percent and Italy's FTSE MIB down 15.8 percent.
Commodities Recap
Brent slips to lowest since July 2017. Brent crude was up 43 cents at $50.90 at 0949 GMT. It earlier fell to $49.93, the lowest since July 2017. U.S. crude was up 74 cents at $43.27.
Gold hits 6-month peak at 1274.60. Spot gold was trading 0.36 percent higher at $1,273.70 per ounce as at 1100 GMT after hitting $1,274.68 in early trade, its highest since June 20. U.S. gold futures were up 0.4 percent at $1,276.5 per ounce.
Among other metals, silver gained 1 percent to $14.88 per ounce, while platinum was up 1.4 percent to $793.10 and Palladium gained 0.9 percent to $1,257.49 per ounce.
Treasuries Recap
***No major events and indicators are scheduled for the day as most of the European and UK markets are closed on account of Christmas.
