Market Roundup
• French Non-Farm Payrolls (QoQ) (Q3) 1.6%,1.8% previous
•Sweden Nov Unemployment Rate n.s.a. 3.3%,3.3% forecast, 3.2% previous
•Sweden Nov Unemployment Rate s.a 3.4%,3.4% forecast, 3.3% previous
•French Oct Current Account -3.70B, -5.70B previous
•French Oct Exports 38.9B, 37.6B previous
•French Oct Imports 43.7B, 43.3B previous
•French Oct Trade Balance -4.9B, -6.3B forecast, -5.8B previous
•EU GDP (YoY) (Q3) -4.3%,-4.4% forecast, -14.7% previous
•EU GDP (QoQ) (Q3) 12.5%,12.6% forecast, -11.8% -11.8% previous
•EU Employment Overall (Q3) 157,386.5K, 157,346.0K previous
•EU Employment Change (YoY) (Q3) -2.3%,-2.0% forecast, -3.1% previous
•EU Employment Change (QoQ) (Q3) 1.0%,0.9% forecast, -2.9% previous
•EU Dec ZEW Economic Sentiment 54.4 , 37.5 forecast,32.8 previous
• German Dec ZEW Economic Sentiment 55.0, 45.5 forecast, 39.0 previous
•German ZEW Current Conditions -66.5, -66.0 forecast, -64.3 previous
•US Nov NFIB Small Business Optimism 101.4, 104.0 previous
Looking Ahead Economic Data
•13:30 US Unit Labor Costs (QoQ) (Q3) -8.9% forecast ,9.0% previous
•13:30 US Nonfarm Productivity (QoQ) (Q3) 4.9%,10.6% previous
•13:55 US Redbook (YoY) 9.2% previous
•13:55 US Redbook (MoM) 1.3% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged higher on Tuesday as upbeat economic sentiment data from Germany buoyed the euro. German investor sentiment soared more than expected in December on expectations that vaccines against the coronavirus would boost the outlook for Europe’s largest economy, a survey showed.The ZEW economic research institute said its survey of investors’ economic sentiment moved up to 55.0 from 39.0 in the previous month. Immediate resistance can be seen at 1.2132(38.2% fib), an upside break can trigger rise towards 1.2170 (23.6%fib).On the downside, immediate support is seen at 1.2090 (50 % fib), a break below could take the pair towards 1.2051(61.8% fib).
GBP/USD: Sterling declined against the dollar on Tuesday as growing fears of a no-deal weighed on sterling. With only days left to the end of the Brexit transition period, leaders have again failed to resolve their outstanding differences on a future trading relationship, sending the British currency hurtling to a near three-week low on Monday. The pound versus the dollar was ldown 0.3% at $1.3343 at 1127 GMT, after touching an almost three-week low of $1.3225 on Monday. Immediate resistance can be seen at 1.3384(5DMA), an upside break can trigger rise towards 1.3405 (23.6%fib).On the downside, immediate support is seen at 1.3298 (38.2%fib), a break below could take the pair towards 1.3210 (50%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as investors looked past the surge in coronavirus cases and ahead to a possible new COVID-19 U.S. stimulus deal and vaccines to fight the pandemic. White House economic adviser Larry Kudlow on Monday said talks on another round of stimulus funding to deal with the deadly coronavirus pandemic are moving in the right direction, and President Donald Trump’s administration and Congress are getting closer to agreement. Negotiations on a relief deal gathered momentum in the U.S. Congress on Friday, as a bipartisan group of lawmakers worked to put the finishing touches on a $908 billion stimulus plan. Immediate resistance can be seen at 0.8914 (38.2 % fib), an upside break can trigger rise towards 0.8940 (50%fib).On the downside, immediate support is seen at 0.8883 (23.6%fib), a break below could take the pair towards 0.8800 (Psychological level ).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as renewed U.S.-China tensions supported greenback. The United States on Monday imposed financial sanctions and travel ban on 14 Chinese officials over their alleged role in Beijing’s disqualification last month of elected opposition legislators in Hong Kong.The safe-haven Japanese yen fell 0.06% versus the dollar to 103.11. Strong resistance can be seen at 104.12 (5DMA), an upside break can trigger rise towards 104.32 (50% fib).On the downside, immediate support is seen at 103.95 (21 DMA), a break below could take the pair towards 103.55(23.6%fib).
Equities Recap
European shares dipped on Tuesday, as a post-Brexit trade deal hung in the balance, while rising coronavirus cases spurred talks of stricter restrictions that could cause more economic pain.
At (GMT 12:50 ),UK's benchmark FTSE 100 was last trading down at 0.34 percent, Germany's Dax was down by 0.31 percent, France’s CAC finished was down by 0.75 percent.
Commodities Recap
Gold prices hit a two-week high on Tuesday, as investors remained hopeful of further U.S. stimulus measures to counter the economic fallout of a surge in coronavirus cases.
Spot gold rose 0.2% to $1,867.66 per ounce by 0314 GMT. It rose to $1,869.06, its highest since Nov. 23, earlier in the session.U.S. gold futures were up 0.3% at $1,871.70.
Oil prices fell on Tuesday, adding to losses from the previous session that came as California tightened its pandemic lockdown through Christmas and coronavirus cases continued to surge in the United States and Europe.
Brent crude futures fell 51 cents, or 1.1%, to $48.28 a barrel by 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 45 cents or 1%, to $45.31 a barrel. Both benchmark contracts lost around 1% on Monday.
