Market Roundup
• Russia Central Bank reserves (USD) 583.2B ,584.9B previous
• US Continuing Jobless Claims 5,520K,5,915K forecast, 6,071K previous
• US Initial Jobless Claims739.50K, 775K, 778K previous
• US Jobless Claims 4-Week Avg 739.50K, 748.50K previous
• US ISM Non-Manufacturing Business Activity 61.2 previous
• US Nov Services PMI 58.4, 57.7 forecast, 56.9 previous
• US Markit Nov Composite PMI 58.6, 57.9 forecast, 56.3 previous
• US ISM Non-Manufacturing Prices 66.1, 63.9 previous
• US ISM Non-Manufacturing PMI 55.9, 56.0 forecast, 56.6 previous
• US ISM Non-Manufacturing New Orders 57.2, 58.8 previous
• US ISM Non-Manufacturing Employment 51.5, 50.1 previous
Looking Ahead - Economic Data (GMT)
•00:30 Australia Oct Retail Sales (MoM) 1.6% forecast,-1.1% previous
•01:30 Australia Retail Sales (QoQ) 6.5% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro was headed for its best week in a month on Thursday and has blown past major resistance levels as investors piled into bets the U.S. dollar has further to fall as the world begins to emerge from the COVID-19 pandemic. The common currency is up 1.5% for the week so far and last sat comfortably at $1.2140. Having finally breached $1.2000 after multiple attempts, momentum funds have surged in to long positions. The next serious chart resistance level is not until $1.2555.Investors are looking to U.S. jobs figures due later on Friday for the latest signs of the recovery losing momentum, while the fate of the pound is largely in the lap of Brexit trade deal negotiators who remain locked in talks.. Immediate resistance can be seen at 1.2172 (Daily high), an upside break can trigger rise towards 1.2200 (Psychological level).On the downside, immediate support is seen at 1.2112 (38.2%fib), a break below could take the pair towards 1.2075(50% fib).
GBP/USD: The pound rose against dollar on Thursday as broadly weaker dollar boosted pound despite doubts about Brexit deal Against the dollar, the pound gained 0.2% to $1.3400 in early London trading, not far from a three-month high of $1.3442 hit earlier this week. Versus the euro, the pound was a touch stronger at 90.55 pence. Negotiators were reportedly stuck on differences over fisheries, state aid for companies and rules to resolve disputes, offsetting any optimism from Britain becoming the world’s first country to approve the Pfizer-BioNTech COVID-19 vaccine. Immediate resistance can be seen at 1.3457(23.6%fib), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3376 (38.2%fib), a break below could take the pair towards 1.3315 (50 % fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, with the currency holding near an earlier two-year high as oil prices fell and investors weighed signs of progress on U.S. economic stimulus talks. Lawmakers in Washington have failed to reach an agreement on economic stimulus to help relieve the impact of COVID-19 in the United States, but there were early indications that a $908 billion bipartisan proposal could be gaining traction. U.S. crude prices were down 0.4% at $45.09 a barrel, while the Canadian dollar was trading nearly unchanged at 1.2917 to the greenback. Immediate resistance can be seen at 1.3467 (38,2%fib), an upside break can trigger rise towards 1.2942 (50%fib).On the downside, immediate support is seen at 1.2850 (Daily low), a break below could take the pair towards 1.2831(23.6%fib).
USD/JPY: The dollar declined against the Japanese yen on Thursday as hopes of a stimulus deal and optimism over vaccine progress pushed the U.S. dollar lower. U.S. lawmakers were unable to agree on a fresh relief package, early signs indicate that a $908 billion bipartisan proposal could be gaining traction as a negotiating tool.On Wednesday Federal Reserve Chair Jerome Powell repeated his plea for Congress to provide more aid until a vaccine allows for a broader resumption of commerce. Strong resistance can be seen at 104.40(38.2%fib), an upside break can trigger rise towards 104.68 (23.6% fib).On the downside, immediate support is seen at 104.16 (50%fib), a break below could take the pair towards 103.93 (61.8%fib).
Equities Recap
European shares ended little changed on Thursday, as a surge in material stocks and Rolls-Royce helped counter downbeat business activity data from the region and Brexit trade deal uncertainty.
UK's benchmark FTSE 100 closed up by 0.42 percent, Germany's Dax ended down by 0.45 percent, France’s CAC finished the day down by 0.16 percent.
The Nasdaq Composite Index closed at a record high on Thursday, lifted by Tesla Inc , while the S&P 500 fell after a report that Pfizer Inc had slashed the target for the rollout of its COVID-19 vaccine.
Dow Jones ended down by 0.29 percent, S&P 500 finished lower by 0.06 percent, Nasdaq ended down by 0.23 percent.
Treasuries Recap
U.S. Treasury yields drifted lower on Thursday as the market looked ahead to the November employment report to cap a week of rate surges and retreats, seeking clues from the data on where the coronavirus-battered economy is headed.
The benchmark 10-year yield was last down 2.6 basis points at 0.9195%.
Commodities Recap
Global benchmark Brent crude prices rose 1% to their highest since early March on Thursday on renewed hopes for a U.S. stimulus deal and after major oil producers agreed to increase output by a modest 500,000 barrels per day (bpd) from January.
Brent futures rose 46 cents, or 1.0%, to settle at $48.71 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 36 cents, or 0.8%, to a one-week closing high of $45.64.
Gold firmed on Thursday as the dollar fell and investors clung to hopes of an eventual breakthrough in negotiations over a fresh U.S. coronavirus aid package.
Spot gold was up 0.2% to $1,833.67 per ounce at 10:26 a.m. EST (1526 GMT). It earlier hit its highest since Nov. 23 at $1,843.80, but pared gains following a lower-than-expected U.S. jobless claims number.
U.S. gold futures were up 0.4% to $1,837.20.
