Market Roundup
• German Oct Trade Balance 18.2B, 18.0B forecast, 17.8B previous
•German Oct Imports (MoM) 0.3%, 1.0% forecast, -0.1% previous
• German Oct Exports (MoM ) 0.8%, 1.2% forecast, 2.3% previous
• German Oct Current Account Balance n.s.a 22.5B, 26.3B previous
•Spanish Oct Industrial Production (YoY) -1.6%, -2.6% forecast, -3.4% previous
Looking Ahead Economic Data(GMT)
•15:00 US Wholesale Inventories (MoM) 0.9% previous
•15:00 US Oct JOLTs Job Openings 6.300M forecast,6.436M previous
•15:00 US Oct Wholesale Trade Sales (MoM) 0.8% forecast, 0.1% previous
•15:30 US Gasoline Inventories 2.271M forecast, 3.491M previous
•15:00 Canada BoC Interest Rate Decision 0.25% forecast, 0.25% previous
•15:30 US Crude Oil Inventories -1.424M forecast, -0.679M previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 Canada BoC Rate Statement
Fxbeat
EUR/USD: The euro strengthened on Wednesday as progress in combating the COVID-19 pandemic boosted risk appetite and prospects of more U.S. fiscal stimulus weakened the U.S. currency. The dollar's losses have been most severe versus the euro in recent weeks as economic activity data suggest Europe is outperforming the United States in recent weeks.The dollar weakened 0.2% against the euro to $1.2122 and is heading for an annual loss of 8% against the common currency, its largest since 2017. Immediate resistance can be seen at 1.2123(38.2% fib), an upside break can trigger rise towards 1.2166 (23.6% fib).On the downside, immediate support is seen at 1.2089 (50% fib), a break below could take the pair towards 1.2050 (61.8%fib).
GBP/USD: Sterling rose against dollar on Wednesday after three days of losses as British Prime Minister Boris Johnson headed to Brussels for dinner with the president of the European Commission in a last-ditch attempt to avoid a no-deal Brexit. With only weeks to the end of the Brexit transition period on Dec. 31, traders are hopeful that a face-to-face meeting between Johnson and Commission chief Ursula von der Leyen can break the deadlock. Sterling rose 0.7% against the dollar on Wednesday in volatile trading to $1.3452 by 1230 GMT. It hit the highest intraweek level and headed towards a 2-1/2 year high of above $1.35 touched last Friday. Immediate resistance can be seen at 1.3460 (23.6% fib), an upside break can trigger rise towards 1.3533 (Dec 4th high).On the downside, immediate support is seen at 1.3376 (38.2%fib), a break below could take the pair towards 1.3308(50%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as signs of progress in tackling the COVID-19 pandemic boosted risk appetite. With U.S. coronavirus cases crossing the 15 million mark on Tuesday, regulators moved a step closer to approving a COVID-19 vaccine while Britain started inoculating people on Tuesday. U.S. President Donald Trump's administration proposed a $916 billion aid package, while Congressional lawmakers were still working on resolving differences on the inclusion of business liability protections and state and local government aid. Immediate resistance can be seen at 0.9750 (12 May high), an upside break can trigger rise towards 0.9922 (Higher BB).On the downside, immediate support is seen at 0.8885 (23.%fib), a break below could take the pair towards 0.8800(Psychological level).
USD/JPY: The dollar edged high against the Japanese yen on Wednesday as signs of progress in beating back the COVID-19 pandemic sapped demand for the safest assets. Investors are also tracking negotiations over U.S. coronavirus aid, with the Trump administration proposing a $916 billion package on Tuesday after congressional Democrats rejected a slimmer plan. Investors also looked forward to the U.S. Federal Reserve two-day policy meeting next week for clues on the direction of monetary policy. At 1240 GMT, the dollar was 0.01 percent higher versus the Japanese yen at 104.13. Strong resistance can be seen at 104.29 (50%fib), an upside break can trigger rise towards 104.63 (61.8%fib).On the downside, immediate support is seen at 103.98 (38.2%fib), a break below could take the pair towards 103.56 (23.6%fib).
Equities Recap
European shares hit February highs on Wednesday, joining a global rally on optimism around progress in COVID-19 vaccines and U.S. stimulus package, while all eyes turned to make-or-break Brexit talks.
At (GMT 12:40),UK's benchmark FTSE 100 was last trading up at 0.23 percent, Germany's Dax was up by 0.76 percent, France’s CAC finished was up by 0,06 percent.
Commodities Recap
Gold prices on Wednesday retreated from a two-week peak scaled in the previous session as optimism on COVID-19 vaccine developments led investors to opt for riskier assets such as equities.
Spot gold fell 0.7% to $1,857.70 per ounce by 1017 GMT, after hitting its highest since Nov. 23 at $1,875.07 on Tuesday. U.S. gold futures slipped 0.7% to $1,862.60.
Oil prices rose on Wednesday as news about COVID-19 vaccines lifted investor hopes for a recovery in fuel demand and outweighed concerns sparked by figures indicating U.S. oil inventories jumped last week.
Brent crude rose 27 cents, or 0.6%, to $49.11 a barrel by 1218 GMT. U.S. West Texas Intermediate (WTI) crude CLc1> climbed 22 cents, up 0.5%, to $45.82.
