Market Roundup
•US Redbook (YoY) 21.4%, 16.4% previous
•US Oct S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.8%, 0.8% previous
•US Oct S&P/CS HPI Composite - 20 n.s.a. (YoY) 18.4%,18.5% forecast, 19.1% previous
•US Dec Dallas Fed Services Revenues 20.4,25.4 previous
•US Dec Texas Services Sector Outlook 12.9,22.7 previous
Looking Ahead Economic Data
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro dipped on Tuesday as concerns about the COVID19 and expectations that the Federal Reserve could hike rates in early March boosted greenback. The Fed said in a December 15 policy statement that it would end its pandemic bond purchases in March and pave the way for three quarter-percent rate hikes by the end of 2022 when the economy full employment. The euro declined 0.24% to $1.13. Immediate resistance can be seen at 1.1335(38.2%fib), an upside break can trigger rise towards 1.1366 (Higher BB).On the downside, immediate support is seen at 1.1319(5DMA), a break below could take the pair towards 1.1306 (50%fib).
GBP/USD: Sterling strengthened against dollar on Tuesday as easing concerns over the Omicron coronavirus variant boosted risk appetite. Investors appeared to be guardedly optimistic that the global recovery would regain steam next year even though the emergence of the highly-transmissible Omicron variant has prompted border closures and mobility restrictions in most countries once again. Sterling was last trading up 0.10% at $1.3400. Immediate resistance can be seen at 1.3462(38.2%fib), an upside break can trigger rise towards 1.3519(Nov 19th high).On the downside, immediate support is seen at 1.3421(5DMA), a break below could take the pair towards 1.3401(50%fib).
USD/CAD: The Canadian dollar weakened on Tuesday as dollar was helped by safe-haven flows as worries over the spread of COVID-19 and on expectations the Federal Reserve could raise interest rates as early as March The Fed said in a policy statement on Dec. 15 it would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate hikes by the end of 2022 as the economy nears full employment and inflation continues to surge. Immediate resistance can be seen at 1.2830(38.2%fib), an upside break can trigger rise towards 1.2891(23.6%fib).On the downside, immediate support is seen at 1.2801(5DMA), a break below could take the pair towards 1.2776 (50%fib).
USD/JPY: The dollar edged lower against the Japanese yen on Wednesday as investors weighed Omicron-driven travel disruptions and store closures. The Centers for Disease Control and Prevention (CDC) on Monday shortened the recommended isolation time for Americans with asymptomatic cases of COVID-19 to five days from the previous guidance of 10 days. The Japanese currency was up 0.07% at 114.8 yen per dollar after having earlier fallen to 114.93, its weakest since Nov. 26. Strong resistance can be seen at 115.00 (23.6% fib), an upside break can trigger rise towards 115.19 (Higher BB).On the downside, immediate support is seen at 114.63 (5 DMA), a break below could take the pair towards 114.40 (38.2% fib).
Equities Recap
European stocks ended higher on Tuesday, extending recent gains, amid thin volumes as traders largely stayed away from their desks due to Christmas and upcoming New Year holidays.
UK's benchmark FTSE 100 closed up by 0.02 percent, Germany's Dax ended up by 0.81 percent, France’s CAC finished the day up by 0.57percent.
Wall Street shares closed mixed on Tuesday after another record-setting session in which investors shrugged off concerns over Omicron-driven travel disruptions and store closures.
Dow Jones closed up by 0.26 percent, S&P 500 closed down by 0.10 percent, Nasdaq settled down by 0.56% percent.
Commodities Recap
Gold prices retreated from a more than one-month peak on Tuesday as the dollar strengthened, although concerns over rising inflation kept bullion above the key $1,800 per ounce pivot.
Spot gold was down 0.2% at $1,806.97 per ounce by 1427 EDT (1927 GMT) after hitting its highest since Nov. 22 at $1,820 earlier in the session.
Oil prices settled higher on Tuesday, with Brent crude ending the session near $80 a barrel despite the rapid spread of the Omicron coronavirus variant, supported by supply outages and expectations that U.S. inventories fell last week.
Brent crude settled up 34 cents, or 0.4%, at $78.94 a barrel by 1:39 p.m. EST (1839 GMT). U.S. West Texas Intermediate (WTI) crude settled up 41 cents, or 0.5%, at $75.98.
