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America’s Roundup: Dollar down after US-China trade deal, Wall Street ends near flat, Gold gains,Oil nears three-month high-December 14th,2019

Market Roundup

• Result of British general election may ease concern about Brexit

•  Price of U.S. oil increases by 1.3%

• Safe-haven yen weakens on trade news

• US Nov Core Retail Sales (MoM)  0.1%,0.4% forecast, 0.3% previous

• US Nov Export Price Index (MoM)  0.2%,0.1% forecast, -0.1% previous

• US Nov Import Price Index (MoM) 0.2%,0.2% forecast, -0.5% previous

• US Nov Retail Control (MoM)  0.1%,0.3% forecast, 0.3% previous

• US Nov Retail Sales (MoM ) 0.2% , 0.5% forecast, 0.4% previous

• US Nov Retail Sales (YoY)  3.48% , 3.25% previous

• US Oct Business Inventories (MoM) 0.2%,0.2% forecast, -0.1% previous

• US Oct Retail Inventories Ex Auto 0.7%,0.6% previous

Looking Ahead - Economic Data (GMT)

• No significant data

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro gained against the dollar on Friday, after a landslide election victory for British Prime Minister Boris Johnson and signs of a last-ditch trade deal between the United States and China. Markets believe a Conservative Party win would enable Johnson to deliver Brexit within weeks, easing fears of an immediate crash and potentially ending 3-1/2 years of political instability in Britain. Immediate resistance can be seen at 1.1200 (Daily High), an upside break can trigger rise towards 1.1248 (Aug 5th high).On the downside, immediate support is seen at 1.1150 (200 DMA), a break below could take the pair towards 1.1063 (100 DMA).

GBP/USD: Sterling rose against greenback on Friday, after exit polls suggested a win for the Conservatives, which should help ensure the UK’s smooth exit from the European Union. The early results suggest the election will relieve almost four years of uncertainty about when Brexit would take place, which should be supportive of the pound. The pound surged by 1.9% to $1.3430, reaching the highest since May 2018. Immediate resistance can be seen at 1.3506 (Daily high), an upside break can trigger rise towards 1.3625 (23.6 Fib).On the downside, immediate support is seen at 1.3206 (5 DMA), a break below could take the pair towards 1.3106  (11 DMA).

USD/CAD: The Canadian dollar strengthened to a five-week high against its U.S. counterpart on Friday, adding to this week's rally as investors welcomed a trade deal between the United States and China. U.S. crude oil futures were up 1.3% at $59.94 a barrel as hopes of progress in resolving the U.S.-China trade dispute and Britain's general election result appeared to lift two clouds that have been hanging over investor risk appetite. At (1523 GMT), the Canadian dollar was trading 0.1% higher at 1.3171 to the greenback. Immediate resistance can be seen at 1.3213(9  DMA), an upside break can trigger rise towards 1.3250 (21 DMA).On the downside, immediate support is seen at 1.3149 (Dec 13th low), a break below could take the pair towards 1.3100 (Psychological level).

USD/JPY: The dollar strengthened against the Japanese yen on Friday, as the announcement of an initial China-U.S. trade deal and an election victory for Britain’s Brexit-backing Conservative Party appeared to clear the fog on the global investment horizon, sapping safe-haven demand for the greenback. U.S. President Donald Trump and Chinese officials said Friday that they have agreed to a “phase one” trade deal that included cutting American tariffs on Chinese goods. The deal could dial down tensions between the United States and China, providing some relief to investors who have been buffeted for months by worries that a full-blown trade war would pressure global economic growth. Strong resistance can be seen at 109.73 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.88 (21 DMA), a break below could take the pair towards 107.40 (5 DMA).

Equities Recap

A surge for London-listed companies brought European stock markets within striking distance of an all-time high on Friday, as investors cheered the likelihood of an orderly Brexit after a landslide election victory for Prime Minister Boris Johnson.               

The UK's benchmark FTSE 100 closed up by 1.10 percent, Germany's Dax ended up  by 46 percent, and France’s CAC finished the up by 0.59 percent.

U.S. stock index futures rose on Friday on hopes that the United States and China could reach an initial deal to end their trade war after Washington set its terms for an agreement, just days before fresh levies on Chinese goods kick in.

Dow Jones closed up at 0.01 percent, S&P 500 ended up 0.01 percent, Nasdaq finished the day up by 0.20 percent.

Treasuries Recap

U.S. Treasury prices rose on Friday, pushing yields lower, as investors largely shrugged off news that the United States and China have agreed on the text of a preliminary trade deal as both nations canceled new tariffs on each other's goods set to take effect on Sunday. Analysts said the deal has largely been priced in, ending weeks of back-and-forth speculation about the two countries'trade negotiations.

The yield on the U.S. 10-year note fell to 1.824% from 1.899% late on Thursday. Yields on 30-year bonds dropped to 2.246% from 2.321% on Thursday.U.S. two-year yields, meanwhile, were down at 1.603%, from Thursday's 1.67%.

Commodities Recap

Gold prices rose on Friday as investors remained cautious about the developments in the United Statesand China trade negotiations, while political uncertainties in the world's biggest economy further boosted the metal'ssafe-haven appeal.

   

 

Spot gold  was up 0.5% at $1,477.09 per ounce by 1:42 p.m ET (1842 GMT) and with gains of more than 1.2% so far this week, the yellow metal is on track for its best week in nearly three-months. U.S. gold futursettled up 0.6% at $1,481.20.               

Oil rose on Friday to its highest in nearly three months as investors cheered progress in resolving the U.S.-China trade dispute and a decisive general election result in Britain.

Brent  futures, the global benchmark, gained $1.02, or 1.6%, to settle at $65.22 a barrel, while U.S. West Texas Intermediate (WTI) crude  rose 89 cents, or 1.5%, to $60.07.Both contracts settled at their highest since Sept. 16, up a little over 1% for the week.

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