Market Roundup
•Dollar weakness set to continue in 2021
•Russia Dec Markit Services PMI 48.0, 48.2 previous
•Greek Oct Retail Sales (YoY) 4.7%,-3.5% previous
Looking Ahead - Economic Data (GMT)
•Russia Central Bank reserves (USD) 593.6B previous
•13:30 US Jobless Claims 4-Week Avg 818.25K previous
•13:30 US Continuing Jobless Claims 5,390K forecast, 5,337K previous
•13:30 US Initial Jobless Claims 833K forecast, 803K previous
•15:30 US Natural Gas Storage -125B forecast, -152B previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro edged lower against dollar on Thursday as lockdowns and rising COVID-19 cases overshadowed the optimism around the rollout of vaccines in the New Year, while the dollar fell to a two-and-a-half-year low. Trading volumes were thin, with many traders away on New Year’s Eve and major European markets closed. The dollar’s weakness, driven by bets that the Federal Reserve will keep interest rates very low, has helped rival currencies.The euro has been a big beneficiary and is up 10% in 2020 and was above $1.23 on Thursday. Immediate resistance can be seen at 1.2311 (Higher BB), an upside break can trigger rise towards 1.2350 (23.6%fib).On the downside, immediate support is seen at 1.2265 (38.2%fib), a break below could take the pair towards 1.2227 (9DMA).
GBP/USD: Sterling extended gains on Thursday, rising as much as 0.6% versus the euro after news that trading platforms in the European Union can be used by UK market participants for up to three more months to avoid disruption to swaps trading. While the Brexit trade deal agreed on Christmas Eve set rules for industries such as fishing and agriculture, it did not cover Britain’s finance sector, leading to fears that swaps trading worth $200 billion could be disrupted next week.But Britain’s markets watchdog said on Thursday UK market participants could use EU platforms to trade swaps for up to three months to avoid potential disruption in markets. Immediate resistance can be seen at 1.3673(23.6%fib), an upside break can trigger rise towards 1.3715 (Higher BB).On the downside, immediate support is seen at 1.3613(38.2%fib), a break below could take the pair towards 1.3556 (50 % fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday as growing investor hopes for a global economic recovery caused the dollar to fall further against swiss franc . The struggling dollar dropped 0.46% to 89.59 against a basket of currencies, plumbing a low not seen since April 2018. At 12:30GMT, the dollar was 0.03 percent lower versus the Swiss franc at 0.8810 . Immediate resistance can be seen at 0.8844(38.2%fib), an upside break can trigger rise towards 0.8858 (9DMA).On the downside, immediate support is seen at 0.8800(Psychological level), a break below could take the pair towards 0.8788(23.6%%fib).
USD/JPY: The dollar declined against the Japanese yen on Thursday as investors bet on more fiscal support and positioned for year-end in light trading volume. Optimism of further stimulus came even after Senate Majority Leader Mitch McConnell on Tuesday put off a vote on increasing COVID-19 relief checks from $600 to $2,000. The Japanese yen strengthened 0.11% versus the greenback at 103.03 per dollar. Strong resistance can be seen at 103.18 (38.2% fib), an upside break can trigger rise towards 103.32(50% fib).On the downside, immediate support is seen at 102.99 (23.6%fib), a break below could take the pair towards 102.79 (Lower BB).
Equities Recap
European stocks retreated on Thursday as investors squared positions on the last trading day of the year, while tighter coronavirus restrictions in Britain and a move by the United States to raise tariffs on some EU products dampened sentiment.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 1.20 percent, France’s CAC finished was down by 0.20 percent.
Commodities Recap
Gold prices were on course for their best year since 2010 on Thursday, even as dimming prospects for increased U.S. stimulus checks and buoyant equities weighed on the metal in thin trade.
Spot gold was down 0.2% at $1,890.25 per ounce by 0801 GMT, but was up more than 24% for the year. U.S. gold futures gained 0.2% to $1,897.60.
Global crude oil markets have lost about a fifth of their value in 2020 as strict coronavirus lockdowns paralysed much of the global economy, but prices have rebounded strongly from their lows as governments rolled out stimulus.
On Thursday, the last trading day of 2020, Brent was down 8 cents, or 0.2%, at $51.55 a barrel as of 1015 GMT, while U.S. West Texas Intermediate lost 10 cents, or 0.2%, to $48.30 a barrel.
