Market Roundup
• Sweden Nov Services PMI (MoM) 58.6, 55.0 previous
• Spanish Nov Services PMI 39.5, 36.6 forecast, 41.4 previous
• Italian Nov Services PMI 39.4, 41.3 forecast, 46.7 previous
•Italian Nov Composite PMI 42.7, 49.2 previous
•French Nov Markit Composite PMI 40.6, 39.9 forecast, 47.5 previous
•French Nov Services PMI 38.8, 38.0 forecast, 46.5 previous
•German Nov Services PMI 46.0, 46.2 forecast, 49.5 previous
•German Nov Composite PMI 51.7, 52.0 forecast, 55.0 previous
•Russian Dec Forex Intervention -50.8B, -45.5B forecast, -50.1B previous
•EU Nov Markit Composite PMI 45.3, 45.1 forecast, 50.0 previous
•EU Nov Services PMI 41.7, 41.3 forecast, 46.9 previous
•EU Nov Composite PMI 49.0, 47.4 forecast, 52.1 previous
•UK Nov Services PMI 47.6, 45.8 forecast, 51.4 previous
•EU Oct Retail Sales (YoY) 4.3%,2.7% forecast, 2.2% previous
•EU Oct Retail Sales (MoM) 1.5%,0.8% forecast, -2.0% previous
Looking Ahead - Economic Data (GMT)
•13:00 Russia Central Bank reserves (USD) 584.9B previous
•13:00 Brazil Nov Markit Composite PMI 55.9 previous
•13:00 Brazil Nov Markit Services PMI 52.3 previous
•13:30 US Continuing Jobless Claims 5,915K forecast, 6,071K previous
•13:30 US Initial Jobless Claims 775K, 778K previous
•13:30 US Jobless Claims 4-Week Avg 748.50K previous
•14:00 ISM Non-Manufacturing Business Activity 61.2 previous
•14:45 US Nov Services PMI 57.7 forecast, 56.9 previous
•14:45 US Markit Nov Composite PMI 57.9 forecast, 56.3 previous
•15:00 US ISM Non-Manufacturing Prices 63.9 previous
•15:00 US ISM Non-Manufacturing PMI 56.0 forecast, 56.6 previous
•15:00 US ISM Non-Manufacturing New Orders 58.8 previous
•15:00 US ISM Non-Manufacturing Employment 50.1 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro gained against dollar on Thursday as signs of progress towards U.S. fiscal stimulus and optimism about COVID-19 vaccines kept investors upbeat. Lawmakers in Washington have failed to reach an agreement on economic stimulus to help relieve the impact of COVID-19 in the United States, but there were early signs that a $908 billion bipartisan proposal could be gaining traction. Risk appetite were also boosted by optimism about recent developments towards the roll-out of COVID-19 vaccines. The UK approved Pfizer Inc’s vaccine on Wednesday. Immediate resistance can be seen at 1.2139(Daily high), an upside break can trigger rise towards 1.2157 (23.6%fib).On the downside, immediate support is seen at 1.2112 (38.2%fib), a break below could take the pair towards 1.2075(50% fib).
GBP/USD: The pound rose against dollar on Thursday as broadly weaker dollar boosted pound despite doubts about Brexit deal Against the dollar, the pound gained 0.2% to $1.3400 in early London trading, not far from a three-month high of $1.3442 hit earlier this week. Versus the euro, the pound was a touch stronger at 90.55 pence. Negotiators were reportedly stuck on differences over fisheries, state aid for companies and rules to resolve disputes, offsetting any optimism from Britain becoming the world’s first country to approve the Pfizer-BioNTech COVID-19 vaccine. Immediate resistance can be seen at 1.3457(23.6%fib), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3376 (38.2%fib), a break below could take the pair towards 1.3315 (50 % fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday as dollar was weighed down by expectations of further fiscal stimulus for the United States. Republicans and Democrats in Congress remained unable to reach agreement on more relief for the U.S. economy on Wednesday, with top Republicans supporting what the Senate’s top Democrats dismissed as an inadequate partisan proposal. Treasury Secretary Steven Mnuchin said President Donald Trump supported a proposal put forth by Republican Majority Leader Mitch McConnell after the latter on Tuesday rejected a $908 billion bipartisan package. Immediate resistance can be seen at 0.8934 (38.2%fib), an upside break can trigger rise towards 0.8949 (50%fib).On the downside, immediate support is seen at 0.8914(23.6% fib), a break below could take the pair towards 0.8900(Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Thursday as hopes of a stimulus deal and optimism over vaccine progress pushed the U.S. dollar lower. U.S. lawmakers were unable to agree on a fresh relief package, early signs indicate that a $908 billion bipartisan proposal could be gaining traction as a negotiating tool.On Wednesday Federal Reserve Chair Jerome Powell repeated his plea for Congress to provide more aid until a vaccine allows for a broader resumption of commerce. At 12:50 GMT, the dollar against the Japanese yen dipped 0.32% to 104.08. Strong resistance can be seen at 104.40(38.2%fib), an upside break can trigger rise towards 104.68 (23.6% fib).On the downside, immediate support is seen at 104.16 (50%fib), a break below could take the pair towards 103.93 (61.8%fib).
Equities Recap
European shares slipped on Wednesday as investors took stock following a near 14% rally last month, while shares in BioNTech surged after UK became the first country to approve its COVID-19 vaccine developed with Pfizer.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading up at 0.34 percent, Germany's Dax was down by 0.46percent, France’s CAC finished was down by 0.39 percent.
Commodities Recap
Gold prices extended gains on Thursday as the dollar fell to a 2-1/2 year low while investors grew optimistic of an eventual breakthrough in negotiations over a fresh U.S. coronavirus aid package.
Spot gold rose 0.6% to $1,841.30 per ounce by 1214 GMT, having earlier hit its highest since Nov. 23 at $1,843.11. U.S. gold futures were up 0.8% to $1,844.50.
Oil prices fell on Thursday as producers including Saudi Arabia and Russia locked horns over the need to extend record production cuts set in place in the first wave of the COVID-19 pandemic.
Brent crude was down 15 cents, or 0.3%, at $48.10 a barrel by 0155 GMT, after gaining 1.8% on Wednesday. U.S. oil was down 17 cents, or 0.4%, at $45.11 a barrel, having ended 1.6% higher the previous session.
