Market Roundup
•U.S Fed policy statement due at 1900 GMT
•UK Nov Core CPI MoM (MoM) -0.1%,0.2% forecast, 0.2% previous
•UK Nov Core CPI (YoY) 1.1%,1.4% forecast, 1.5% previous
•UK Nov Core PPI Output (MoM) 0.0%,0.1% forecast, 0.1% previous
•UK Nov Core PPI Output (YoY) 0.9%,0.4% forecast, 0.5% previous
•UK Nov Core RPI (MoM) -0.3%,0.0% previous
•UK Nov CPI (MoM) -0.1% 0.1%, forecast, 0.0% previous
•UK Nov CPI (YoY) 0.3%,0.6% forecast,0.7% previous
•UK Nov CPI, n.s.a 108.90, 109.10 previous
•UK Nov PPI Input (YoY) -0.5%,-2.5% forecast, -1.3% previous
•UK Nov PPI Input (MoM) 0.2%,0.4% forecast, 0.2% previous
•UK Nov PPI Output (YoY) -0.8%,-0.9% forecast, -1.4% previous
•UK Nov PPI Output (MoM) 0.2%,0.1% forecast, -0.1% previous
•UK Nov RPI (MoM) -0.3%,0.2% forecast, 0.3% previous
• French Dec Manufacturing PMI 51.1, 50.1 forecast, 49.6 previous
•French Dec Markit Composite PMI 49.6, 42.9 forecast, 40.6 previous
•French Dec Services PMI 49.2, 40.0 forecast, 38.8 previous
•German Dec Manufacturing PMI 58.6, 56.4 forecast, 57.8 previous
•German Dec Services PMI 47.7, 44.0 forecast, 46.0 previous
•German Dec Composite PMI 52.5, 50.4 forecast, 51.7 previous
•EU Manufacturing PMI 55.5, 53.0 forecast, 53.8 previous
•EU Dec Services PMI 47.3, 41.9 forecast, 41.7 previous
•EU Dec Markit Composite PMI 49.8, 45.8 forecast, 45.3 previous
•UK Manufacturing PMI 57.3, 55.9 forecast, 55.6 previous
•UK Services PMI 49.9, 50.5 forecast, 47.6 previous
•UK Composite PMI 50.7, 51.3 forecast, 49.0 previous
•EU Oct Trade Balance 30.0B, 22.0B forecast, 24.5B previous
•EU Oct Wages in euro zone (YoY) (Q3) 2.20%,5.20% previous
Looking Ahead Economic Data(GMT)
•13:30 US Nov Core Retail Sales (MoM) 0.1% forecast, 0.2% previous
•13:30 US Nov Retail Sales (YoY) 5.68% previous
•13:30 US Nov Retail Sales (MoM) -0.3% forecast, 0.3% previous
•13:30 US Nov Retail Sales Ex Gas/Autos (MoM) 0.2% previous
•13:30 US Nov Retail Control (MoM) 0.2%,0.1% previous
•13:30 Canada Oct Foreign Securities Purchases 4.46B previous
•13:30 Canada Oct Foreign Securities Purchases by Canadians 11.17B previous
•13:30 Canada Oct Wholesale Sales (MoM) 0.9% , 0.9% previous
•13:30 Canada Oct Common CPI (YoY) 1.6% previous
•13:30 Canada Nov Core CPI (MoM) 0.4% previous
•13:30 Canada Nov Core CPI (YoY) 1.0% previous
•13:30 Canada Nov CPI (YoY) 0.8% forecast,0.7% previous
•13:30 Canada CPI (MoM ) 0.2% forecast, 0.4% previous
•14:45 US Dec Manufacturing PMI 55.7 forecast, 56.7 previous
•14:45 US Dec Services PMI 55.9 forecast, 58.4 previous
•14:45 US Markit Composite PMI 58.6 previous
•15:00 US Oct Business Inventories (MoM) 0.7% forecast, 0.7% previous
•15:00 US Dec NAHB Housing Market Index 88 forecast, 90 previous
•15:00 US Retail Inventories Ex Auto 0.7% previous
•15:00 US Crude Oil Inventories -1.937M forecast, 15.189M previous
•19:00 US Fed Interest Rate Decision 0.25% forecast, 0.25% previous
Looking Ahead - Events, Other Releases (GMT)
•15:30 ECB's De Guindos Speaks
•16:15 ECB’s Schnabel Speaks
•17:00 German Buba President Weidmann Speaks
•19:00 US FOMC Statement
•19:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro strengthened against dollar on Wednesday as strong euro zone survey figures and hopes of progress on Brexit negotiations boosted euro across the board. The euro has been gaining since the European Union announced a recovery fund in May, rising nearly 13% since then. Economic activity data in recent months have also boosted bets that Europe is outperforming the U.S.Those expectations got a further boost with manufacturing survey data from Germany and France indicating that Europe’s biggest economies may be recovering quickly. The euro was up 0.31 percent at $1.21880. Immediate resistance can be seen at 1.2193 (23.6% fib), an upside break can trigger rise towards 1.2212 (Daily high).On the downside, immediate support is seen at 1.2147 (5DMA), a break below could take the pair towards 1.2130 (38.6%fib).
GBP/USD: Sterling gained against the dollar on Wednesday as positive soundings from the European Union on Brexit talks boosted sterling against the dollar. Upbeat mood music around a possible Brexit deal before the year-end has helped the pound strengthen over 2% against the dollar this week. However, caution still shows in elevated implied volatility gauges which imply traders buying protection against price swings in the currency. At 12:40 GMT on Wednesday, the pound was at $1.3537 versus dollar. Immediate resistance can be seen at 1.3558 (23.6%fib), an upside break can trigger rise towards 1.3600 (Psychological level).On the downside, immediate support is seen at 1.3493 (38.2%fib ), a break below could take the pair towards 1.3441 (50%fib).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as investors awaited Federal Reserve’s last meeting for the year. The Fed is expected to keep lending rates at near-zero and signal their staying there for the foreseeable future at the conclusion of a two-day meeting later on Wednesday. Markets are anticipating an update on the Fed’s bond-buying program. Immediate resistance can be seen at 0.8844 (38.2%fib), an upside break can trigger rise towards 0.8863(5DMA).On the downside, immediate support is seen at 0.8823 (23.6%fib), a break below could take the pair towards 0.8800(Psychological levl).
USD/JPY: The dollar dipped against the Japanese yen on as progress toward a massive U.S. government spending bill and COVID-19 relief measures whetted risk appetite, sapping demand for the greenback . Investors are keeping an eye on the outcome of a two-day Federal Reserve policy meeting on Wednesday. Policymakers are expected to keep the key overnight interest rate pinned near zero and signal it will stay there for years to come Strong resistance can be seen at 103.57(38.2%fib), an upside break can trigger rise towards 103.83 (50%fib).On the downside, immediate support is seen at 103.26(23.6%fib), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European shares hit their highest since February on Wednesday, on upbeat business activity data in the region, rising hopes of a Brexit trade deal and the possible roll-out of a COVID-19 vaccine in the continent before the new year.
At (GMT 12:40),UK's benchmark FTSE 100 was last trading up at 0.83 percent, Germany's Dax was down by 1.47 percent, France’s CAC finished was up by 0.38 percent.
Commodities Recap
Gold rose to a one-week high on Wednesday on market hopes for further fiscal support for the U.S. economy and expectations that the U.S. Federal Reserve will keep a lid on interest rates.
Spot gold was up 0.5% at $1,862.30 an ounce by 1023 GMT after touching its highest since Dec. 9 at $1,865.14. U.S. gold futures rose 0.6% to $1,866.20.
Oil prices edged higher on Wednesday on a weakening dollar and progress on the rollout of COVID-19 vaccines, though gains were capped by a surprise gain in U.S. crude inventories and tighter coronavirus lockdowns in Europe.
Brent crude futures rose 25 cents, or 0.5%, to $51.01 a barrel by 1017 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 21 cents, or 0.4%, at $47.83.
