Market Roundup
• German Oct Retail Sales (YoY) 8.2%,5.9% forecast, 6.5% previous
• German Oct Retail Sales (MoM) 2.6%, 1.2% forecast, -2.2% previous
•Swiss Nov CPI (MoM) -0.2%,-0.1% forecast, 0.0% previous
•Swiss Nov CPI (YoY) -0.7%,-0.5% forecast, -0.6% previous
• Spanish Unemployment Change25.3K, 49.6K previous
•Italian Oct Monthly Unemployment Rate 9.8% , 9.9% forecast, 9.6% previous
•EU Oct Unemployment Rate 8.4%,8.4% forecast, 8.3% previous
•EU Oct PPI (YoY) -2.0%, -2.4% forecast, -2.4% previous
•EU Oct PPI (MoM) 0.4%,0.2% forecast, 0.3% previous
Looking Ahead Economic Data(GMT)
•13:15 US Nov ADP Nonfarm Employment Change 410K forecast , 365K previous
•13:30 Canada Labor Productivity (QoQ) (Q3) 9.8% previous
•14:45 US ISM Nov NY Business Conditions 65.1% previous
•14:45 US Nov ISM-New York Index 814.8 previous
•15:30 US Gasoline Inventories 2.386M forecast, 2.180M previous
•15:30 US Distillate Fuel Production 0.333M previous
•15:30 US Crude Oil Inventories -2.358M forecast, -0.754M previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 US FOMC Member Quarles Speaks
•14:00 ECB's Lane Speaks
•14:00 US FOMC Member Williams Speaks
•18:00 UK MPC Member Haskel Speaks
Fxbeat
EUR/USD: The euro was little changed against dollar on Wednesday as some investors booked profits on a stellar run to record highs, but hope for additional U.S. economic stimulus and a coronavirus vaccine kept market sentiment well supported. Top Senate Republican Mitch McConnell urged the U.S. Congress to pass a $1.4 trillion spending bill including coronavirus stimulus, while some senators and House members proposed relief measures worth $908 billion. The euro little changed against the dollar after its strong performance overnight as it hit the highest level since May 2018. It last fetched $1.2065. Immediate resistance can be seen at 1.2087 (Daily high), an upside break can trigger rise towards 1.2111(23.6%fib).On the downside, immediate support is seen at 1.2038(38.2%fib), a break below could take the pair towards 1.1979(50% fib).
GBP/USD: The pound declined against dollar on Wednesday as Britain and the European Union quickly approached a make or break moment in talks on a trade deal and doubts remaining about whether an agreement can be reached. Negotiators are said to still be stuck on differences over fisheries, state aid for companies and future dispute resolution, offsetting any optimism from Britain becoming the world’s first country to approve the Pfizer-BioNTech COVID-19 vaccine. Sterling last traded at $1.3359, down 0.5% on the day, and against the euro it hit Nov. 9 lows of 90.40 pence. Immediate resistance can be seen at 1.3369 (38.2%fib), an upside break can trigger rise towards 1.3445(23.6%fib).On the downside, immediate support is seen at 1.3303 (50%fib), a break below could take the pair towards 1.3239 (61.8 % fib).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as weaker-than-expected U.S. manufacturing activity data and speculation that the Federal Reserve will act to support the economy before vaccinations become available weighed on dollar.Fed Chair Jerome Powell and Mnuchin urged Congress to provide more help for small businesses amid surging infections, on concern that a vaccine may not arrive in time to keep more companies from failing.The next Federal Open Market Committee policy meeting is on Dec. 15-16.Later on Wednesday, data including the U.S. ADP national employment data and EU unemployment rate are due. Immediate resistance can be seen at 0.8995 (50%fib), an upside break can trigger rise towards 0.9006 (61.8%fib).On the downside, immediate support is seen at 0.8982 (38.2% fib), a break below could take the pair towards 0.8969 (23.6%fib).
USD/JPY: The dollar gained against the Japanese yen on Wednesday as investors assessed the likelihood of further fiscal stimulus in the United States. U.S. Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi held stimulus talks for the first time since the Nov. 3 election. A bipartisan group of senators and House members proposed $908 billion worth of coronavirus relief measures. At 12:50 GMT, the dollar against the Japanese yen rose 0.3% to 104.55. Strong resistance can be seen at 104.74(38.2%fib), an upside break can trigger rise towards 105.11 (23.6% fib).On the downside, immediate support is seen at 104.45 (50%fib), a break below could take the pair towards 104.13 (61.8%fib).
Equities Recap
European shares slipped on Wednesday as investors took stock following a near 14% rally last month, while shares in BioNTech surged after UK became the first country to approve its COVID-19 vaccine developed with Pfizer.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading up at 0.20 percent, Germany's Dax was down by 0.70 percent, France’s CAC finished was down by 0.47 percent.
Commodities Recap
Gold rose to an over one-week high on Wednesday on a soft dollar, while signs of progress in discussions over a new U.S. coronavirus relief package bolstered bullion’s appeal as a hedge against possible inflation.
Spot gold rose 0.9% to $1,830.40 per ounce by 1038 GMT, having earlier hit $1,832.20, its highest since Nov. 24.U.S. gold futures gained 0.8% to $1,833.60.
Oil prices slipped on Wednesday as the market awaited a pact from producers on output, although Britain’s approval of a COVID-19 vaccine gave hopes for a demand recovery a boost.
Brent crude oil futures were down 13 cents, or 0.3%, at $47.29 a barrel by 1203 GMT, while West Texas Intermediate crude was down 21 cents, or 0.5%, at $44.34.
