Market Roundup
• US Nov ADP Nonfarm Employment Change 307K, 410K forecast , 365K previous
•Canada Labor Productivity (QoQ) (Q3) -10.3%,9.8% previous
• US ISM Nov NY Business Conditions 44.2%, 65.1% previous
• US Nov ISM-New York Index 811.9, 814.8 previous
• US Gasoline Inventories 3.491M, 2.386M forecast, 2.180M previous
• US Distillate Fuel Production -0.021M, 0.333M previous
• US Crude Oil Inventories -0.679M, -2.358M forecast, -0.754M previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Foreign Bonds Buying 1,964.0B previous
•23:50 Japan Foreign Investments in Japanese Stocks -1,193.2B previous
•00:00 New Zealand ANZ Commodity Price Index (MoM) 1.9% previous
•00:30 Japan Nov Services PMI 47.7 previous
•00:30 Australia Oct Imports (MoM) -6% previous
•00:30 Australia Oct Trade Balance 5.800B forecast, 5.630B previous
•00:30 Australia Oct Exports (MoM) 4% previous
•00:30 Australia Invest Housing Finance (MoM) 5.2% previous
•00:30 Australia Home Loans (MoM) 6.0% previous
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Fxbeat
EUR/USD: The euro gained against dollar on Wednesday as dollar was pressured once again by expectations of further fiscal stimulus for the United States. U.S. Senate Democratic Leader Chuck Schumer on Wednesday rejected the latest Republican coronavirus aid plan. He described it as an “inadequate, partisan proposal” that would help shield businesses from liability lawsuits but fail to help workers hurt by the pandemic. That came a day after a proposed bipartisan coronavirus pandemic-related economic stimulus package on Tuesday worth $908 billion lifted the market’s appetite for risk and pushed the dollar to its lowest level since April 2018.Immediate resistance can be seen at 1.2124(23.6%fib), an upside break can trigger rise towards 1.2200(Psychological level).On the downside, immediate support is seen at 1.2053(38.2%fib), a break below could take the pair towards 1.1997(38.2% 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/CAD: USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday, as hopes rose that major oil producers will maintain production limits next year and the prospect of a coronavirus vaccine supported investor sentiment. Canadian labor productivity fell by a record 10.3% in the third quarter, as hours worked rebounded faster than business output, Statistics Canada said. That follows a record increase in the second quarter, which was marked by lockdown measures imposed because of the coronavirus pandemic. The loonie was up 0.1% at 1.2922 per U.S. dollar. The currency touched its strongest intraday level since October 2018 at 1.2916.Immediate resistance can be seen at 1.4150 (Daily high), an upside break can trigger rise towards 1.2949 (5DMA).On the downside, immediate support is seen at 1.3004 (23.6%fib), a break below could take the pair towards 1.2879 (9 DMA).
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.
UK's benchmark FTSE 100 closed up by 1.23 percent, Germany's Dax ended down by 0.52 percent, France’s CAC finished the day up by 0.03 percent.
Wall Street stocks were mixed on Wednesday, with the Nasdaq dipping and S&P 500 index climbing as investors weighed upbeat vaccine developments and a potential coronavirus fiscal package with a bleak private jobs report.
Dow Jones closed up by 0.20 % percent, S&P 500 closed down by 0.18% percent, Nasdaq settled down by 0.05 % percent.
Treasuries Recap
U.S. Treasury yields on the long end of the curve rose on Wednesday, adding to Tuesday's big climb on a potential new coronavirus relief package, while the spread between 2- and 10-year notes reached its widest since February 2018.
The benchmark 10-year yield was last up less than a basis point at 0.9393% and the yield curve steepened, with the most-watched yield spread widening to as much as 79.60 basis points.
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.
