Market Roundup
• GfK German Jan Consumer Climate -7.3, -8.8 forecast, -6.7 previous
• UK Business Investment (QoQ) (Q3) 9.4%,8.8% forecast, -26.5% previous
• UK Business Investment (YoY) (Q3) -19.2%,-20.7% forecast, -26.1% previous
• UK GDP (YoY) (Q3) -8.6%,-9.6% forecast, -21.5% previous
• UK GDP (QoQ) (Q3) 16.0%,15.5% forecast, -19.8% previous
• UK Current Account (Q3) -15.7B, -11.6B forecast, -2.8B previous
•Sweden Dec Consumer Confidence 92.3, 88.3 previous
•Sweden Manufacturing Confidence 106.9, 110.6 previous
• Sweden Retail Sales (MoM) 0.8%, 0.5% previous
Looking Ahead - Economic data (GMT)
•13:30 US Core PCE Prices (Q3) 3.50% forecast,-0.80% previous
•13:30 US PCE Prices (Q3) 3.7%,-1.6% previous
•13:30 US Real Consumer Spending (Q3) 40.6% previous
•13:30 US GDP Sales (Q3) 25.6% forecast ,25.5% previous
•13:30 US GDP Price Index (QoQ) (Q3) 3.7% forecast , -2.1% previous
•13:30 US GDP (QoQ) (Q3) 33.1% forecast,-31.4% previous
•13:30 US Corporate Profits (QoQ) (Q3) 27.5% forecast,-10.7% previous
•13:30 US Redbook (MoM) -2.2% previous
•13:30 US Redbook (YoY) 2.5% previous
•20:30 US Dec CB Consumer Confidence 97.0 forecast, 96.1 previous
•20:30 US Nov Existing Home Sales (MoM) -1.0% forecast, 4.3% previous
•20:30 US Nov Existing Home Sales 6.70M forecast, 6.85M previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro was defensive against the dollar on Tuesday as a new coronavirus strain spread across Britain, closing key trade routes and creating a supply-chain nightmare while time was running out to strike a post Brexit trade deal. Talks between the French and British governments to reopen their border, where hundreds of trucks are stranded, and reports suggesting movement in Brexit talks have however helped to take some pressure off both currencies. At 1230 GMT, the euro was up 0.02% at $1.2242. Immediate resistance can be seen at 1.2271 (23.6% fib), an upside break can trigger rise towards 1.2300 (Psychological level).On the downside, immediate support is seen at 1.2233 (5DMA), a break below could take the pair towards 1.2138 (38.2% fib).
GBP/USD: Sterling fell against dollar on Tuesday as Britain remained stuck in COVID-19 isolation due to a new coronavirus strain, although hopes of progress in Brexit talks helped to take some pressure off. EU sources added that the bloc was now willing to accept a reduction in the value of its catch in UK waters of up to 25% over a period of time from 2021.The pound was 0.4% lower against the dollar at $1.3415 by 1224 GMT, after weakening by as much as 2.5% to $1.3190, a 10-day low, on Monday. Immediate resistance can be seen at 1.3518 (Daily high), an upside break can trigger rise towards 1.3596 (Dec 18th high).On the downside, immediate support is seen at 1.3429 (38.2%fib), a break below could take the pair towards 1.3361 (50%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as concerns about a new strain of the coronavirus and Brexit trade-deal uncertainty dampened risk-appetite.Countries across the globe shut their borders to Britain on Monday due to fears about a highly infectious new strain of the virus, causing travel chaos and raising the prospect of food shortages days before Britain is set to leave the European Union. Immediate resistance can be seen at 0.8865 (50%fib), an upside break can trigger rise towards 0.8879 (22nd Dec high).On the downside, immediate support is seen at 0. 8845(38.2%fib), a break below could take the pair towards 0. 8820 (23.6%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as a fast-spreading new coronavirus strain prevalent in Britain prompted investors to seek safety in the greenback. The dollar index hit a 10-day high earlier in the session, but then turned lower on the day. The dollar index edged 0.1% lower to 90.226, after it sank to two-and-a-half-year lows last week, driven by optimism that vaccines would help to revive global growth. Strong resistance can be seen at 103.08 (38.2%fib), an upside break can trigger rise towards 103.67 (50%fib).On the downside, immediate support is seen at 103.22 (23.6%fib), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European shares rose on Tuesday as the approval of a U.S. stimulus package helped allay worries of a further dent to the global economy from a new coronavirus strain in the UK.
At (GMT 13:00),UK's benchmark FTSE 100 was last trading up at 0.44 percent, Germany's Dax was up by 1.17 percent, France’s CAC finished was up by 1.11 percent.
Commodities Recap
Gold prices fell on Tuesday as the dollar strengthened on growing worries about a mutant coronavirus strain in the UK, while market response to a long-awaited U.S. economic stimulus package limited bullion’s losses.
Spot gold edged 0.2% lower to $1,872.47 per ounce by 1215 GMT, U.S. gold futures fell 0.3% to $1,877.30.
Oil dropped towards $50 a barrel on Tuesday, adding to losses from the previous session, as a new coronavirus strain in the United Kingdom revived concerns over demand recovery.
Brent crude was down 32 cents, or 0.6%, at $50.59 a barrel by 1125 GMT, while U.S. West Texas Intermediate (WTI) crude fell 67 cents, or 1.4%, to $47.30.
