Market Roundup
• US consumer spending slows in Nov 0.2% V 0.3% forecast, on weak incomes 0% v 0.5% previous.
• US Core PCE price index m/m expected Nov 0% v 0.1% forecast.
• Atlanta Fed GDPNow sees US econ growing 2.5% in Q4 v 2.6% forecast on Dec 16.
• Mexico inflation rises faster than expected in early Dec; 1st half-month inflation 3.46% v 3.30% forecast.
• ECB aims to wait for German elections (Sept) before next move, No option off the table if the economy worsens.
• Monte dei Paschi board meets over state aid request; Govt ready to approve state bailout.
• Italian, Spanish yields rise on Monte dei Paschi, other banking woes.
• Wall St falls as investors pause ahead of holiday season.
• China's U.S. Treasuries holding reduction, not a strategic cut -FX regulatory official.
• Fitch: On Brazilian asset managers says after challenging 2016 marked by high volatility, 2017 could be a less uncertain year for Brazilian investors.
Looking Ahead - Economic Data (GMT)
• No Significant Data
Looking Ahead - Events, Other Releases (GMT)
• No Significant Events
• Japan Holiday (Emperors Birthday)
• New Zealand Non-Trading Day
Currency Summaries
EUR/USD is likely to find support at 1.0405 levels and currently trading at 1.0434 levels. The pair has made session high at 1.0497 and hit lows at 1.0431 levels. Euro recovered its earlier losses against the dollar on Thursday as the dollar declined against euro pulling further away from the 14-year high it set earlier this week as traders booked profits and brushed off mostly upbeat U.S. economic data. the Commerce Department said the economy grew at a 3.5 percent clip in the third quarter instead of the previously reported 3.2 percent pace. That was the strongest growth rate since the third quarter of 2014 and followed the second quarter's anemic 1.4 percent pace. The upward revision reflected stronger growth in consumer spending, business investment in structures and intellectual property products than previously estimated, underscoring the economy's solid fundamentals, which contributed to the Federal Reserve raising interest rates last week. The single currency hit a one-week high against the dollar, rebounding from a nearly 14-year low of $1.0350 set on Tuesday. It was last trading at $1.0435.
GBP/USD is supported in the range of 1.2222 levels and currently trading at 1.2288 levels. It reached session high at 1.2343and dropped to session low at 1.2274 levels. Sterling fell to one-month low against the dollar on Thursday as sterling was weighted down after a survey of British consumers showed a gloomy view of the economy's prospects. Also, continued weakness against the dollar kept the pound near a one-month low against the greenback in quiet trading ahead of the Christmas holiday period. Sterling slipped 0.2 percent against the dollar to $1.2285.Sterling has for the past six months been less sensitive than usual to economic data, driven more by concerns over Britain's departure from the EU. Any signs that a hard Brexit, in which Britain loses access to the single market, is on the cards have tended to drive down the currency, with signs to the contrary giving it a boost.
USD/CAD is supported at 1.3457 levels and is trading at 1.3490levels. It has made session high at 1.3513 and lows at 1.3460 levels. The Canadian dollar declined to a three-week low against its U.S. counterpart on Thursday, as the Lonnie was pressured by domestic inflation data that reminded the market of the risk of further interest rate cuts from the Bank of Canada. Canada's annual inflation slowed in November to 1.2 percent from a rate of 1.5 percent in October, with prices for food and clothing declining, Statistics Canada said on Thursday. The annual core inflation rate was 1.5 percent, down from 1.7 percent in October. U.S. crude prices were up 0.50 percent at $52.75 a barrel despite an unexpected rise in U.S. crude inventories last week and moves by Libya to boost output over the next few months. The Canadian dollar was trading at C$1.3495 to the greenback, or 74.12 U.S. cents, weaker than Thursday's close of C$1.3407, or 74.59 U.S. cents.
USD/JPY is supported around 116.50 levels and currently trading at 117.53 levels. It peaked to hit session high at 117.82 and made session lows at 117.27 levels. The U.S. dollar initially jumped higher against Japanese yen on Thursday but reversed course as traders sold greenback on profit taking. Data showed that the U.S. economy grew faster than initially thought in the third quarter, notching its best performance in two years, amid solid consumer spending and a jump in soybean exports. New orders for U.S.-made capital goods also rose more than expected in November amid strong demand for machinery and primary metals, suggesting some of the oil-related drag on manufacturing was starting to fade. The dollar was flat at 117.57 yen after reaching 118.66 yen a week ago, which was its strongest level against the Japanese currency since early February.
Equities Recap
European shares fell slightly in thin pre-holiday trade on Thursday, as mining and financial stocks weakened, while the likelihood of a state rescue sent Italian lender Monte dei Paschi BMPS.MI to a fresh record low.
UK's benchmark FTSE 100 closed up by 0. 2percent, FTSEurofirst 300 ended the day down by 0.31 percent, Germany's Dax ended down by 0.2 percent, France’s CAC finished the day down by 0.1 percent.
U.S. stocks fell on Thursday, weighed down by a dip in retailers, as investors stepped back from a recent rally fueled by optimism that President-elect Donald Trump will invigorate economic growth.
Dow Jones closed down by 0.12 percent, S&P 500 ended down 0.19 percent, Nasdaq finished the day down by 0.45 percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday after data showed improving economic growth, and as investors prepared for new Treasury supply next week.
Benchmark 10-year notes were last down 3/32 in price to yield 2.55 percent, after earlier rising as high as 2.58 percent, up from 2.54 percent late Wednesday.
Commodities Recap
Gold prices eased on Thursday as the dollar advanced in choppy trade and on expectations that the U.S. Federal Reserve will further raise interest rates.
Spot gold was down 0.27 pct at $1,128.4 per ounce by 2:53 p.m. EST (1953 GMT), and most-active U.S. gold futures for February delivery settled down $2.5, or 0.22 percent, at $1,130.70 per ounce.
Oil prices rose in subdued trading on Thursday, supported by strong U.S. economic data and optimism that crude producers would abide by an agreement to limit output.
U.S. West Texas Intermediate crude settled up 46 cents, or 0.9 percent, to $52.95 a barrel. Brent futures for February delivery settled up 59 cents to $55.05, or 1.1 percent
