Market Roundup
• S&P 500, Nasdaq hit new record highs
• U.S. President Trump faces impeachment vote
• Russian Oct Real Wage Growth (YoY) 3.8%,3.5%forecast, 3.1% previous
• Russian Retail Nov Sales (YoY) 2.3%,1.2% forecast,1.7% previous
• Russian Nov Unemployment Rate 4.6%,4.7% forecast, 4.6% previous
• Canada Common CPI (YoY) 1.9%,1.9% previous
• Canada Nov Core CPI (YoY) 1.9%,1.9% previous
• Canada Nov Core CPI (MoM) -0.2%,0.4% previous
• Canada Nov CPI (YoY) 2.2%,2.2% forecast, 1.9% previous
• Canada Nov CPI (MoM) -0.1%,-0.1% forecast, 0.3% previous
• Canada Median CPI (YoY) 2.4%,2.2% previous
• Brazil Foreign Exchange Flows -8.241B, -2.834B previous
Looking Ahead - Economic Data (GMT)
• 21:45 New Zealand Nov Exports 5.03B previous
• 21:45 New Zealand GDP (QoQ) (Q3) 0.6% forecast, 0.5% previous
• 21:45 New Zealand GDP (YoY) (Q3) 2.4%,2.1% previous
• 21:45 New Zealand GDP Annual Average (Q3) 2.4% forecast,2.4% previous
• 21:45 New Zealand GDP Expenditure (QoQ) (Q3) 0.5%, 0.7% previous
• 21:45 New Zealand Nov Imports 6.05B previous
• 21:45 New Zealand Nov Trade Balance (MoM) -1,013M previous
• 21:45 New Zealand Nov Trade Balance (YoY) -5,040M previous
• 23:50 Japan Foreign Bonds Buying -200.4B previous
• 00:00 Australia HIA New Home Sales (MoM) -0.5% previous
• 00:00 Australia Nov Employment Change 14.0K , -19.0K previous
• 00:30 Australia Nov Full Employment Change -10.3K previous
• 00:30 Australia Nov Participation Rate 66.0%,66.0% previous
• 00:30 Australia Nov Unemployment Rate 5.3%,5.3% previous
• 03:00 Japan BoJ Interest Rate Decision -0.10% forecast, -0.10% previous
Looking Ahead - Events, Other Releases (GMT)
• 06:30 Japan BoJ Press Conference
• 12:00 UK Dec BoE Interest Rate Decision 0.75% forecast, 0.75% previous
Currency Summaries
EUR/USD: The euro declined against the dollar on Wednesday, as strong economic data decreased the chances the Federal Reserve would continue its rate-cutting cycle in 2020. Housing starts and building permits were both reported to have grown more than expected and October JOLTS job openings were better than forecast, suggesting that the U.S. labor market remains strong. Immediate resistance can be seen at 1.1176 (Dec 17th high), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1109 (11 DMA), a break below could take the pair towards 1.1076 (21 DMA).
GBP/USD: Sterling declined against greenback on Wednesday, as traders assessed the risk of a hard Brexit at the end of the year, with political news expected to take precedence over economic data. Prime Minister Boris Johnson’s government on Tuesday ruled out an extension to the December 2020 deadline for negotiations on a trade deal with the European Union, creating a new Brexit cliff-edge and cutting short sterling’s post-election rally.The pound fell on the news and has collapsed more than 3% from an 18-month high of $1.3516 struck after Johnson’s landslide victory in Thursday’s general election. It was last down 0.2% versus the dollar, at $1.3080. Immediate resistance can be seen at 1.3195 (9 DMA), an upside break can trigger rise towards 1.3415 (Higher BB).On the downside, immediate support is seen at 1.3000 (Psychological level), a break below could take the pair towards 1.2924 (50 DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday, adding to this week's gains after bets that the Bank of Canada would cut interest rates over the coming months were tempered by data showing a pick-up in underlying inflation.Canada's annual inflation rate rose 2.2% as expected in November on the back of higher energy prices, while the average of the Bank of Canada's three measures of core inflation rose to 2.2% from 2.1%, data from Statistics Canada showed. At (2132 GMT), the Canadian dollar was trading 0.3% higher at 1.3109 to the greenback.Immediate resistance can be seen at 1.3198 (50 DMA), an upside break can trigger rise towards 1.3236 (21 DMA).On the downside, immediate support is seen at 1.3095 (Daily low), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday, as improving economic data squashed the likelihood of a Federal Reserve interest rate cut in 2020. Expectations the Fed will cut rates from the current 1.5% to 1.75% range are a mere 2.2% for the January meeting, 4.3% for March and 12% for April, according to CME Group’s FedWatch tool. The FedWatch tool shows a 50% chance that rates will remain at current levels through December 2020. The dollar index rose 0.21%.The Japanese yen weakened 0.11% versus the greenback at 109.57 per dollar. Strong resistance can be seen at 109.65 (Dec 13th high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.00 (21 DMA), a break below could take the pair towards 108.80 (50 DMA).
Equities Recap
European shares inched lower on Wednesday on worries over a potentially hard Brexit, while gains in defensive sectors capped losses.
The UK's benchmark FTSE 100 closed up by 0.21 percent, Germany's Dax ended down by 0.49 percent, and France’s CAC finished the down by 0.15 percent.
The S&P 500 and Nasdaq extended a record rally on Wednesday, even as FedEx limited gains after cutting its annual profit forecast for the second time this year.
Dow Jones closed down by 0.10 percent, S&P 500 ended down 0.04 percent, Nasdaq finished the day up by 0.05 percent.
Treasuries Recap
U.S. Treasury yields were steady on Wednesday as investors shrugged off the likely impeachment of U.S. President Donald Trump.
The benchmark 10-year yield was up less than a basis point at 1.8959% in trading on Wednesday.
Commodities Recap
Gold dipped on Wednesday, weighed down by a firmer dollar which found support from mounting expectations the U.S. Federal Reserve will not cut interest rates soon, while palladium retreated from record highs.
Spot gold dipped 0.1% to $1,474.80 per ounce as of 10:13 a.m. ET (1513 GMT). U.S. gold futures dropped 0.1% to $1,479.10.
Oil prices steadied on Wednesday after U.S. government data showed a decline in crude inventories and on expectations for an uptick in demand next year on the back of progress in resolving the U.S.-China trade fight.
Brent futures gained 7 cents to settle at $66.17 a barrel while U.S. West Texas Intermediate (WTI) ended the session down 1 cent at $60.93 a barrel per barrel.
