Market Roundup
• Russia Central Bank reserves (USD) 548.7B, 546.6B previous
• US Continuing Jobless Claims 1,722K, 1,681K forecast, 1,671K previous
• US Current Account (Q3) -124.1B, -122.1B forecast, -125.2B previous
• US Initial Jobless Claims 234K, 225K forecast, 252K previous
• US Jobless Claims 4-Week Avg 225.50K, 224.00K previous
• US Dec Philadelphia Fed Manufacturing Index 0.3, 8.0 forecast, 10.4 previous
• US Dec Philly Fed Business Conditions 35.2, 35.8 previous
• US Dec Philly Fed CAPEX Index 27.60, 19.40 previous
• US Dec Philly Fed Employment 17.8, 21.5 previous
• US Dec Philly Fed New Orders 9.4, 8.4 previous
• Canada ADP Nonfarm Employment Change 30.9K, 2.9K previous
• US Oct Wholesale Sales (MoM) -1.1%,-0.1% forecast, 0.8% previous
• Brazil Nov Federal Tax Revenue 125.16B. 125.88B forecast, 135.20B previous
• Belgium Dec NBB Business Climate -3.4, -3.5 forecast, -3.9 previous
• US Existing Home Sales (MoM) (Nov) -1.7%,-0.2%, forecast,,1.5 previous
• US Nov Existing Home Sales 5.35M, 5.44M forecast, 5.44M previous
• US Credit Card Spending (YoY) 2.5%
• US Nov Leading Index (MoM) 0.0%,0.1% forecast, -0.2% previous
Looking Ahead - Economic Data (GMT)
• 23;30 Japan Nov CPI, n.s.a (MoM) 0.3% previous
• 23;30 Japan Nov National Core CPI (YoY) 0.5% forecast, 0.4% previous
• 23;30 National Nov CPI (YoY) 0.2 previous
• 01:30 Chiana PBoC Loan Prime Rate 4.15% previous
• 02:00 New Zealand Credit Card Spending (YoY) 2.5% previous Currency Summaries
EUR/USD: The euro edged higher against the U.S. dollar on Thursday, as euro was boosted by upbeat data on Germany’s business morale. German business morale rose more than expected in December to hit a six-month high in a survey released on Wednesday, suggesting that Europe’s largest economy picked up steam in the fourth quarter despite a persistent manufacturing crisis. The euro was up 0.10 percent at $1.1124. An index that tracks the dollar versus a basket of six major currencies was down 0.02 at 97.38. Immediate resistance can be seen at 1.1174 (Dec 17th high), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1079 (50 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling hit two week lows against dollar on Thursday after giving up all its post-election gains on fears that Britain may still leave the European Union without a trade deal at the end of next year.Market optimism following the Conservative Party’s decisive win in last week’s general election has waned after Prime Minister Boris Johnson set a hard deadline of December 2020 to agree a trade deal with the EU, risking another no-deal Brexit cliff-edge if an agreement isn’t reached. The pound fell following the meeting, touching a two-week low below $1.30 and was last down 0.5% at $1.3025, far below the $1.35 peak hit following last Thursday’s election. Immediate resistance can be seen at 1.3048 (5 DMA), an upside break can trigger rise towards 1.3183 (21 DMA).On the downside, immediate support is seen at 1.2932 (50 DMA), a break below could take the pair towards 1.2900 (Psychological level).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, unable to add to this week's gains as domestic data showed a bigger-than-expected drop in wholesale trade. Canadian wholesale trade declined by 1.1% in October from September on weaker sales in the machinery, equipment and supplies subsector, as well as agricultural supplies, Statistics Canada said. Analysts had forecast a 0.1% decrease. Separate data from payroll services provider ADP showed that Canada added 30,900 jobs in November, the fifth straight month of gains. At (1502 GMT), the Canadian dollar was trading nearly unchanged at 1.3113 to the greenback .Immediate resistance can be seen at 1.3139 (5 DMA), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3100 (Lower BB), a break below could take the pair towards 1.3042 (29th Oct low).
USD/JPY: The dollar was little changed against the Japanese yen on Thursday, as investor’s unwound long bets on greenback after the U.S. House of Representatives voted to impeach President Donald Trump, stoking fears of political uncertainty. Trump became the third U.S. president to be impeached as the Democratic-led House formally charged him with abuse of power and obstruction of Congress in a historic step that will inflame partisan tensions across a deeply divided America. Strong resistance can be seen at 109.71(Dec 20th high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.00 (Psychological level), a break below could take the pair towards 108.74 (200 DMA).
Equities Recap
European shares edged higher on Thursday, with a pre-holiday lull making for a quiet trading session aside from a handful of corporate updates.
UK's benchmark FTSE 100 closed up by 0.44 percent, Germany's Dax ended down by 0.08 percent, France’s CAC finished the day up by 0.21 percent.
Wall Street’s major indexes resumed their rally with fresh records on Thursday as U.S. Treasury Secretary Steven Mnuchin said an initial U.S.-China trade deal would be signed in early January.
Dow Jones closed up by 0.37 percent, S&P 500 ended up by 0.33 percent, Nasdaq finished the up by 0.57 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday as traders weighed mixed economic signals on recent domestic labor market and business conditions.
The benchmark 10-year yield was down 1.9 basis points at 1.9047% in afternoon trading, after rising as high as 1.9520%.
Commodities Recap
Gold held steady in a narrow range on Thursday as investors awaited further developments on U.S.-China trade and as political uncertainty in Washington failed to move markets across the board.
Spot gold edged 0.1% higher to $1,476.28 per ounce as of 11:07 a.m. ET (1607 GMT). U.S. gold futures gained 0.1% to $1,480.30 per ounce.
Oil prices reached the highest level in three months in thin pre-Christmas trading on Thursday, buoyed by the previous day’s news that U.S. crude inventories declined and as U.S.-China trade tensions continued to ease.
Brent crude futures rose 37 cents to settle at $66.54 a barrel, gaining for the sixth straight day.U.S. West Texas Intermediate (WTI) crude rose 29 cents to settle at $61.22 a barrel.
