Market Roundup
•U.S. weekly jobless claims data due at 1330 GMT
•UK GDP (MoM) 0.4%,1.1% previous
•UK Index of Services 9.7%,14.2% previous
•UK Oct Industrial Production (YoY) -5.5%,-6.5% forecast, -6.3% previous
•UK Oct Industrial Production (MoM) 1.3%,0.3% forecast, 0.5% previous
•UK Oct Manufacturing Production (YoY) -7.1%, -8.4% forecast, -7.9% previous
•UK Oct Manufacturing Production (MoM) 1.7%,0.3% forecast, 0.2% previous
•UK Monthly GDP 3M/3M Change 10.2%,15.5% previous
•UK Oct Trade Balance -12.00B, -9.60B forecast, -9.35B previous
•UK Oct Trade Balance Non-EU -4.54B, -1.40B forecast, -1.65B previous
•UK Oct Construction Output (YoY) -7.5%,-7.4% forecast, -10.0% previous
• French Oct Industrial Production (MoM) 1.6%, 0.4% forecast, 1.4% previous
•Sweden Nov CPI (MoM) 0.0%,-0.1% forecast, -0.1% previous
•Irish Nov HICP (MoM) 0.3%,-0.5% previous
•Irish Nov CPI (MoM) 0.3%, -0.6% previous
Looking Ahead Economic Data(GMT)
•13:00 Russia Central Bank reserves (USD) 583.2B previous
•13:30 US Continuing Jobless Claims 5,335K forecast, 5,520K previous
•13:30 US Jobless Claims 4-Week Avg 739.50K previous
•13:30 US Initial Jobless Claims 725K forecast, 712K previous
•13:30 US Real Earnings (MoM) 0.1% previous
•13:30 US Nov CPI, n.s.a (MoM) 0.04% previous
•13:30 US Nov CPI Index, s.a 260.32 previous
•13:30 US Nov CPI Index, n.s.a. 260.11 forecast, 260.39 previous
•13:30 US Nov Core CPI (MoM) 0.1% forecast, 0.2% previous
•13:30 US Nov Core CPI (YoY) 1.6% forecast, 1.6% previous
•13:30 US Nov Core CPI Index 269.30 previous
•13:30 US CPI (MoM) 0.1% forecast , 0.2% previous
•13:30 US Nov CPI (YoY) 1.1% forecast ,1.2% previous
•16:30 US Nov Cleveland CPI (MoM) 0.2% previous
•16:30 US 8-Week Bill Auction 0.075% previous
•16:30 US 4-Week Bill Auction 0.075% previous
Looking Ahead - Events, Other Releases (GMT)
•13:30 ECB Press Conference
•18:30 BoC Deputy Governor Beaudry Speaks
•19:00 US Nov Federal Budget Balance
Fxbeat
EUR/USD: The euro stood its ground on Thursday ahead of European Central Bank meeting that is expected to provide more emergency bond buying and cheap liquidity for banks. ECB officials have made clear in recent weeks that a bigger Pandemic Emergency Purchase Programme (PEPP) and more subsidised long-term loans for banks will form the backbone of policy measures. Economists see the ECB expanding the Pandemic Emergency Purchase Programme (PEPP) by another 500 billion euros and extending it at least to the end of 2021, while providing more generous Targeted Long-Term Refinancing Operations (TLTROs). Immediate resistance can be seen at 1.2103 (38.2%fib), an upside break can trigger rise towards 1.2157 (23.6%fib).On the downside, immediate support is seen at 1.2058 (50%fib), a break below could take the pair towards 1.2021 (61.8% fib).
GBP/USD: The pound declined against dollar on Thursday as investors became more cautious about the risk of Britain and the EU failing to agree on a Brexit deal, with just three weeks until the Dec. 31 deadline. The British currency has been jittery on Brexit headlines, dropping in response to news suggesting a deal is unlikely and rising when hopes are raised. Many investment banks still think that a Brexit deal will be reached at the last minute. The pound extended its fall in early London trading, down 0.6% against the dollar at $1.3318 at 0829 GMT. Immediate resistance can be seen at 1.3322 (38.2%fib), an upside break can trigger rise towards 1.3432 (23.6%fib).On the downside, immediate support is seen at 1.3232 (50%fib), a break below could take the pair towards 1.3143 (61.8 % fib).
USD/CHF: The dollar held near recent lows against the Swiss franc on Thursday as selling momentum eased, but positive vaccine news and prospects of more U.S. fiscal stimulus next year should keep pressure on the greenback. The dollar’s losses overall have been most severe versus the euro in recent weeks as economic activity data suggested Europe is outperforming the United States. With U.S. coronavirus cases exceeding 15 million on Tuesday, regulators moved a step closer to approving a COVID-19 vaccine, while Britain started inoculating people on Tuesday. Immediate resistance can be seen at 0.8912 (38.2%fib), an upside break can trigger rise towards 0.8940 (50%fib).On the downside, immediate support is seen at 0.8881(23.6% fib), a break below could take the pair towards 0.8800(Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as elevated risks surrounding Brexit trade talks and ongoing political wrangling over U.S. stimulus package supported dollar. In the United States, Congress continued talks on additional economic stimulus, with House lawmakers voting to pass a one-week stopgap funding bill to give more time for talks. Meanwhile, British Prime Minister Boris Johnson warned the European Union on Wednesday it must scrap demands that he says are unacceptable if there is to be a Brexit trade deal to avoid a turbulent breakup in three weeks. At 13:00 GMT, the dollar against the Japanese yen gained 0.29% to 104.48. Strong resistance can be seen at 104.75(38.2%fib), an upside break can trigger rise towards 105.11(23.6% fib).On the downside, immediate support is seen at 104.43 (50%fib), a break below could take the pair towards 104.14 (61.8%fib).
Equities Recap
European shares were little changed on Thursday after a meeting between Britain and EU leaders on a trade deal failed to yield a breakthrough, while a European Central Bank (ECB) decision due later in the day kept investors from making big bets.
At (GMT 13:10 ),UK's benchmark FTSE 100 was last trading up at 0.31 percent, Germany's Dax was down by 0.15 percent, France’s CAC finished was up by 0.03 percent.
Commodities Recap
Gold prices edged lower on Thursday, following a steep sell-off in the previous session, as a breakthrough in long-running U.S. fiscal stimulus negotiations remained elusive.
Spot gold slipped 0.2% to $1,835.40 per ounce by 0707 GMT, after falling as much as 2.5% on Wednesday. U.S. gold futures were steady at $1,839.20.
Oil rose above $49 a barrel on Thursday as hopes of a faster demand recovery after the release of COVID-19 vaccines offset a huge rise in U.S. crude inventories that showed there was still ample supply available.
Brent crude was up 80 cents, or 1.6%, at $49.66 a barrel at 1131 GMT, rising for a third day. U.S. West Texas Intermediate (WTI) crude rose 73 cents, or 1.6%, to $46.25.
