Market Roundup
•US Dec Dallas Fed Mfg Business Index 8.1,11.8 previous
•US 6-Month Bill Auction 0.210%,0.160% previous
•US 3-Month Bill Auction 0.085%,0.075% previous
Looking Ahead - Economic Data (GMT)
•05:00 Japan BoJ Core CPI (YoY) 0.5%,0.6% previous
• 05:00 Japan Nov BoJ Construction Orders (YoY) 2.1% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro was little changed on Monday as investors focused on central banks’ tapering while trying to assess the potential impact on markets should former ECB boss Mario Draghi leave his job as Italian prime minister in January. Parliament will convene to choose a new Italian president in January, and the former European Central Bank chief is the most favoured candidate. Draghi has signalled he would be willing to become head of state. The euro was up 0.02 percent at $1.1328. Immediate resistance can be seen at 1.1355(Higher BB), an upside break can trigger rise towards 1.1365 (23.6%fib).On the downside, immediate support is seen at 1.1308(50 % fib), a break below could take the pair towards 1.1281 (61.8%fib).
GBP/USD: Sterling was little changed against dollar on Monday as flight cancellations over Christmas revived concerns that the Omicron virus variant could slow down the economy heading into the new year.U.S. airlines have cancelled or delayed thousands of flights over the past three days due to COVID-19-related staff shortages, while several cruise ships had to cancel stops after outbreaks aboard. Sterling was last trading up 0.10% at $1.3400. Immediate resistance can be seen at 1.3444(38.2%fib), an upside break can trigger rise towards 1.3511(23.6%fib).On the downside, immediate support is seen at 1.3388(50 %fib), a break below could take the pair towards 1.3335 (61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as expectation that the variant of the Omicron coronavirus would not have a high impact on global economic growth offset easing oil prices. Markets have been volatile this month as rising infections fueled by the new variant have forced countries to reinstate restrictions, although fears about its impact eased after early data suggested Omicron was less severe than the Delta variant. The loonie was trading up 0.07 at 1.2793 to the greenback. Immediate resistance can be seen at 1.2828(38.2%fib), an upside break can trigger rise towards 1.2850(Daily high).On the downside, immediate support is seen at 1.2778(50%fib), a break below could take the pair towards 1.2727 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as investors hailed strong U.S. holiday season sales and some grew less fearful about economic damage from the Omicron variant of COVID-19. A Mastercard Inc survey showed a substantial rise in U.S. holiday season retail sales. This fueled investor optimism, boosting dollar and lifting a gauge of stocks across the globe. Strong resistance can be seen at 114.89(23.6%fib), an upside break can trigger rise towards 115.00 (Psychological level).On the downside, immediate support is seen at 114.48 (5DMA), a break below could take the pair towards 114.29(38.2%fib).
Equities Recap
European shares steadied in quiet trade on Monday as flight cancellations over Christmas revived concerns that the Omicron virus variant could slow down the economy heading into the new year.
UK's benchmark FTSE 100 closed up by 0.02 percent, Germany's Dax ended up by 0.50 percent, France’s CAC finished the day up by 0.70 percent.
The S&P 500 index closed at a record high on Monday, its fourth straight session of gains, as strong U.S. retail sales underscored economic strength and eased worries from Omicron-driven flight cancellations that hit travel stocks.
Dow Jones closed up by 0.98 percent, S&P 500 closed up by 1.38 percent, Nasdaq settled up by 1.39 % percent.
Commodities Recap
Oil prices rose more than 2% on Monday to the highest level since late November on hopes that the Omicron coronavirus variant will have a limited impact on global demand in 2022.
Global benchmark Brent crude rose $2.46, or 3.2%, to settle at $78.60 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.78, or 2.4%, to settle at $75.57 a barrel. The U.S. market was closed on Friday for a holiday.
Gold prices scaled a more than one-week high on Monday, as renewed risks to global economic growth from rising cases of the Omicron coronavirus variant offset pressure from a firmer U.S. dollar.
Spot gold was steady at $1,807.50 an ounce by 13:39 EDT (1839 GMT), after hitting its highest since Dec.17 at $1,813.38 earlier in the session.
