Market Roundup
- EUR/USD -0.25%, USD/JPY 0.41%, GBP/USD -0.08%, EUR/GBP -0.19%
- DXY 0.22%, DAX 1.33%, FTSE 0.25%, Brent 0.61%, Gold -0.03%
- Germany Exports MM SA Oct, -0.40%, 1.00% forecast, -0.40% previous
- Germany Imports MM SA Oct, 1.8%, 1.1% forecast, -1.0% previous
- Germany Trade Balance, EUR, SA Oct, 19.9B, 21.8B forecast, 21.8B previous
- France Industrial Output MM Oct, 1.9%, -0.1% forecast, 0.6% previous
- France Budget Balance Oct, -77.20B, -76.30B previous
- Great Britain Industrial Output YY Oct, 3.6%, 3.5% forecast, 2.5% previous
- Great Britain Manufacturing Output MM Oct, 0.1%, 0.1% forecast, 0.7% previous
- Great Britain Manufacturing Output YY Oct, 3.9%, 3.9% forecast, 2.7% previous
- Great Britain Construction O/P Vol YY Oct, -0.2%, 1.9% forecast, 1.1% previous
- Great Britain Goods Trade Balance GBP Oct, -10.78B, -11.45B forecast, -11.25B previous
- Great Britain Goods Trade Bal, Non-EU Oct, -2.38B, -3.30B forecast, -2.98B previous
- EU's Juncker says brexit talks to enter second phase
- EU's Juncker says sure EU27 will open next phase of talks
- Japan's 3Q GDP blows past initial estimates as business investment surges
- China exports growth hits 8-mth high, imports defy pollution curbs
- Decade in the making: post-crisis banking rules finally signed
- Oil stable as strong Chinese demand counters rising dollar
- Gold rises on bargain hunting after hitting over 4-mth low
Economic Data Ahead
- (0800 ET/1300 GMT) The National Institute of Economic and Social Research (NIESR) will report Britain's GDP estimate in the three months through November. The indicator rose 0.5 percent in the previous month.
- (0815 ET/1315 GMT) Canadian Mortgage and Housing Corp will report housing starts for the month of October. The indicator stood at a seasonally adjusted annualized rate of 222,800 in the previous month.
- (0830 ET/1330 GMT) The U.S. Labor Department releases nonfarm payrolls report for the month of November. The report is likely to show 200,000 jobs were added compared with an increase of 261,000 in October.
- (0830 ET/1330 GMT) The U.S. Bureau of Labor Statistics will release labor force participation rate for the month of November. The rate stood at 62.7 percent in the previous month.
- (0830 ET/1330 GMT) The U.S. Labor Department is expected to report that unemployment rate remained steady at 4.1 percent in November.
- (0830 ET/1330 GMT) The United States' average hourly earnings are likely to rise 0.3 percent in November after staying flat in the month before.
- (0830 ET/1330 GMT) Canada's releases industrial capacity utilization data for the third quarter. The indicator stood at 85.0 in the previous quarter.
- (1000 ET/1500 GMT) The University of Michigan is likely to report that U.S. preliminary consumer sentiment index rose to 99.0 in December, after posting a final reading of 98.5 in November.
- (1300 ET/1800 GMT) Baker Hughes reports U.S. Oil Rig Count.
Key Events Ahead
- No major event scheduled
FX Beat
DXY: The dollar index rose to an over 2-week high as the passage of a bill to temporarily extend U.S. government funding raised investors' optimism that a tax reform bill would also pass. The greenback against a basket of currencies traded 0.3 percent up at 94.01, having touched a high of 94.05 earlier, its highest since Nov. 21. FxWirePro's Hourly Dollar Strength Index stood at 95.59 (Slightly Bullish) by 1000 GMT.
EUR/USD: The euro slumped to a fresh 2-week low after UK PM Theresa May managed to strike a deal with the EU on the Brexit settlement bill, opening doors for further trade talks and a smooth Brexit transition. The European currency traded 0.3 percent down at 1.1737, having touched a low of 1.1731 earlier, its lowest since Nov. 22. FxWirePro's Hourly Euro Strength Index stood at 43.33 (Neutral) by 1000 GMT. The near-term support is around 1.17129 (Nov 21st, 2017 low) and any break below will drag the pair down till 1.1705/1.1660. The near-term resistance is around 1.1760 (50+- day MA) and any break above will take it to 1.1810 (20- day MA) /1.1833 (cloud top)/1.1880/1.1925.
USD/JPY: The dollar rallied to a 3-1/2 week high against the Japanese yen on the back of the U.S tax reforms and passage of the funding bill to avert a government shutdown. Investors now awaited the U.S. non-farm payrolls report, which is expected to show 200,000 new jobs were created in November. The major was trading 0.4 percent up at 113.55, having hit a high of 113.58, its highest since Nov. 14. FxWirePro's Hourly Yen Strength Index stood at -40.88 (Neutral) by 1000 GMT. On the lower side, any close below 111 confirms minor weakness, a decline till 110/108.15 likely. Any convincing close above 113.35 (Nov 16th, 2017 high) will take the pair to next level till 114/114.73.
GBP/USD: Sterling jumped to a 4-day high against the dollar and a 6-month high versus the euro after Britain and the EU reached an agreement to move on to talks about trade and a transition period after they outlined their separation. Moreover, better-than-expected British manufacturing output, along with figures for construction and the trade balance, added to signs that British industry may gain momentum in 2018. The major traded up at 1.3473, having hit a low of 1.3319 the day before, it’s lowest since Nov. 28. FxWirePro's Hourly Sterling Strength Index stood at 60.97 (Bullish) by 1000 GMT. On the lower side, near-term support is around 1.3430 and any break below will drag it to next level till 1.337/1.3300. The near-term resistance is around 1.3550 and any break above will take it to next level till 1.3600/1.3680. Against the euro, the pound was trading 0.3 percent up at 87.12 pence, having hit a high of 86.89 pence earlier, it’s highest since June. 9.
USD/CHF: The Swiss franc fell to 3-1/2 week lows, as the greenback rallied after the U.S. Congress passed legislation to temporarily fund the government through Dec. 22. The major trades 0.3 percent up at 0.9968, having touched a high of 0.9972 earlier, it’s highest since Nov. 13. FxWirePro's Hourly Swiss Franc Strength Index stood at -87.90 (Slightly Bearish) by 1000 GMT. The near-term resistance is around 1.000 and any break above will take the pair to next level till 1.00380. On the lower side, near-term support is around 0.9886 (daily Kijun-Sen) and any break below will drag it to next level till 0.9862 (50- day MA)/0.9805 (200- day EMA)/0.97720.
AUD/USD: The Australian dollar eased to a 6-month low after a survey predicted the Aussie would be at $0.7600 on a one- and three-month period, before rising to $0.7800 a year from now. The major trades down at 0.7507, having hit a low of 0.7501 earlier; it’s lowest since Jun. 7. FxWirePro's Hourly Aussie Strength Index stood at -83.85 (Slightly Bearish) by 1000 GMT. On the lower side, the near term support is around 0.7500 and any convincing break below will drag the pair till 0.7435/0.7380. The near-term resistance is around 0.7600 and any break above targets 0.7645/0.7680/0.7730/0.7780.
Equities Recap
European stocks advanced to a week's high, while sterling rallied against the dollar and the euro as Britain and the European Union announced a breakthrough in Brexit negotiations.
The pan-European STOXX 600 index gained 0.8 percent to 389.74 points, while the FTSEurofirst 300 index rose 0.9 percent to 1,533.94 points.
Britain's FTSE 100 trades 0.3 percent higher at 7,338.75 points, while mid-cap FTSE 250 jumped 0.3 percent to 19,876.99 points.
Germany's DAX rallied 1.1 percent at 13,186.64 points; France's CAC 40 trades 0.6 percent up at 5,417.85 points.
Commodities Recap
Crude oil prices rose, extending previous session gains as China's demand for crude and the OPEC-led supply cuts gradually tightened the market this year. International benchmark Brent crude was trading 0.7 percent up at $62.49 per barrel by 0949 GMT, having hit a low of $61.11 on Wednesday, its lowest since Nov. 17. U.S. West Texas Intermediate was trading 0.5 percent higher at $56.87 a barrel, after falling as low as $55.79 the day before, its lowest since Nov. 17.
Gold prices slumped, hovering towards an over 4-month low touched in the previous session, as the greenback rallied to 2-weeks peak as the U.S. Congress passed a bill to temporarily avert a government shutdown. Spot gold was 0.1 percent down at $1,245.41 an ounce by 0953 GMT, after hitting its lowest since July 26 at $1,243.87 on Thursday. U.S. gold futures were 0.2 percent lower at $1,250.80.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.386 percent higher by 0.011 bps, while 5-year yield was 0.007 bps down at 2.153 percent.
The German 10-year bond yields traded 0.013 bps higher at 0.309 percent and the yield on short-term 2-year traded 0.006 basis point up at -0.756 percent.
The yield on the UK benchmark 10-year gilts rose 0.07 basis points to 1.324 percent, while the yield on the short-term 2-year traded 0.037 basis points higher at 0.546 percent.
The Japanese government bond prices edged higher, with the benchmark 10-year yield down 0.5 basis point at 0.045 percent. The 30-year yield fell 1 basis point to 0.820 percent.
The Australian government bond futures eased, with the three-year bond contract down 2.5 ticks at 98.030. The 10-year contract slipped 1.5 ticks to 97.4550.
