Market Roundup
•Finnish Dec Industrial Confidence -5, -14 previous
•Finnish Dec Consumer Confidence -4.6, -4.8 previous
•Spanish Nov Retail Sales (YoY) -4.3%, -2.7% previous
•France Jobseekers Total 3,586.3K, 3,549.7K previous
Looking Ahead - Economic Data (GMT
•15:30 US Dec Dallas Fed Mfg Business Index 12.0 previous
•16:30 US 3-Month Bill Auction 0.090% previous
•16:30 US 6-Month Bill Auction 0.090% previous
•18:00 US 5-Year Note Auction 0.397% previous
•18:00 US 2-Year Note Auction 0.165% previous
•19:00 Brazil Nov CAGED Net Payroll Jobs 233.50K, 395.00K previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro gained against dollar on Monday after U.S. President Donald Trump signed a $2.3 trillion spending package and as investors continued to celebrate a last-minute trade deal clinched between Britain and the European Union. By backing down from his earlier threat to block the bipartisan bill, Trump allowed millions of Americans to continue receiving unemployment benefits and averted a federal government shutdown. The euro was up 0.2% at $1.2232, a tad below its 2-1/2-year high of $1.2273. Immediate resistance can be seen at 1.2277 (23.6%fib), an upside break can trigger rise towards 1.2300(Psychological level).On the downside, immediate support is seen at 1.2168 (14DMA), a break below could take the pair towards 1.2138 (38.2%fib).
GBP/USD: Sterling declined against dollar on Monday as concerns about the impact of coronavirus restrictions offset hopes that vaccines will be able to bring the economy back to normal soon. British Prime Minister Boris Johnson’s office said on Thursday that trade talks with the European Union were in a “serious situation” and that no agreement would be reached unless the bloc changed its position substantially. Britain wants a free trade deal but is prepared to walk away from talks without one, Britain’s schools minister said on Friday. Immediate resistance can be seen at 1.3487 (Daily high), an upside break can trigger rise towards 1.3623 (23.6%fib).On the downside, immediate support is seen at 1.3449 (50%fib), a break below could take the pair towards 1.3412 (21DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as optimism around the approval of a $2.3 trillion pandemic aid and spending package in the U.S boosted investor sentiment Investors are now keeping a close eye on a U.S. House of Representatives vote on Monday to increase coronavirus relief checks to individuals from $600 to $2,000. At (GMT 12:16), greenback gained 0.09% versus the Swiss franc to 0.8899. Immediate resistance can be seen at 0.8905 (38.2%fib), an upside break can trigger rise towards 0.8926(23.6%fib).On the downside, immediate support is seen at 0.8886(38.2%fib), a break below could take the pair towards 0.8868 (61.8%fib).
USD/JPY: The dollar gained against the Japanese yen on Monday as market sentiment was lifted by the Brexit deal struck over the holidays and the launch of coronavirus vaccinations across the European Union over the weekend. Investors' mood was also lifted as U.S. President Donald Trump on Sunday signed into law a long-awaited $2.3 trillion pandemic aid and spending package. Strong resistance can be seen at 103.66 (50%fib), an upside break can trigger rise towards 103.86 (61.8%fib).On the downside, immediate support is seen at 103.30 (23.6%fib), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European shares climbed on Monday for a fourth straight session as relief over long-awaited U.S. economic stimulus and a post-Brexit trade deal lifted investor mood in thin holiday trading.
At (GMT 12:50) , Germany's Dax was up by 1.53 percent, France’s CAC was last up by 1.04 percent.
Commodities Recap
Gold prices jumped 1% on Monday as investors cheered news that U.S. President Donald Trump signed into law a long-awaited pandemic aid bill, with a weaker dollar lending further support.
Spot gold was up 1% at $1,894.44 per ounce by 0344 GMT, after hitting a one-week high of $1,900.04 earlier in the day. U.S. gold futures gained 0.9% to $1,899.10.
Oil rose to hit $52 a barrel on Monday as U.S. President Donald Trump’s signing of a coronavirus aid package and the start of a European vaccination campaign outweighed concern about weak near-term demand.
Brent crude was up 45 cents, or 0.9%, at $51.74 a barrel at 1200 GMT, after trading as high as $52.02 and reversing an earlier decline. U.S. West Texas Intermediate (WTI) crude added 44 cents, or 0.9%, to $48.67.
