Market Roundup
• US Dec Dallas Fed Mfg Business Index 9.7, 12.0 previous
• US 3-Month Bill Auction 0.095% , 0.090% previous
• US 6-Month Bill Auction 0.100%, 0.090% previous
• US 5-Year Note Auction0.394%, 0.397% previous
• US 2-Year Note Auction 0.137% ,0.165% previous
• Brazil Nov CAGED Net Payroll Jobs 233.50K, 395.00K previous
Looking Ahead - Economic Data (GMT
•No economic data ahead
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro gained against dollar on Monday as risk sentiment was boosted by Britain reaching a trade deal with the European Union. Britain clinched a narrow Brexit trade deal with the European Union on Thursday, just seven days before it exits one of the world’s biggest trading blocs in its most significant global shift since the loss of empire. The news boosted risk taking on Monday - which due to the Christmas holiday was the first full day’s trade since the deal was announced. The single currency was up 0.05% against the U.S. dollar at $1.2226. Immediate resistance can be seen at 1.2277 (23.6%fib), an upside break can trigger rise towards 1.2300(Psychological level).On the downside, immediate support is seen at 1.2168 (14DMA), a break below could take the pair towards 1.2138 (38.2%fib).
GBP/USD: Sterling declined against dollar on Monday as concerns about surging coronavirus cases in the UK weighed on British pound. Britain reported 41,385 new COVID-19 cases on Monday, a daily record, as a rapidly spreading variant of the coronavirus increases infection rates and the holiday weekend impacted the reporting of some new cases. The British pound dipped 0.15% against the U.S. dollar to $1.3517, and was holding below a two-and-a-half-year high of $1.3625 reached on Dec. 17. Immediate resistance can be seen at 1.3487 (Daily high), an upside break can trigger rise towards 1.3623 (23.6%fib).On the downside, immediate support is seen at 1.3449 (50%fib), a break below could take the pair towards 1.3412 (21DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as Brexit trade deal, and a vaccine programme lifted Canadian dollar in thin holiday trade. Britain reached a trade agreement with the European Union on Thursday, days before leaving one of the world’s largest trading blocs. The ongoing rollout of coronavirus vaccines also buoyed sentiment, with Pfizer Inc announcing it expects to complete distribution of 200 million doses in Europe by September. The Canadian dollar was trading 0.2% higher at 1.2844 to the greenback. The currency, touched its strongest intraday level since 21st December at 1.2810. Immediate resistance can be seen at 1.2858(50%fib), an upside break can trigger rise towards 1.2900(Psychological level).On the downside, immediate support is seen at 1.2834 (5 EMA), a break below could take the pair towards 1.2794 (61.8%fib).
USD/JPY: The dollar gained against the Japanese yen on Monday as market sentiment was lifted by the Brexit deal struck over the holidays and the launch of coronavirus vaccinations across the European Union over the weekend. Investors' mood was also lifted as U.S. President Donald Trump on Sunday signed into law a long-awaited $2.3 trillion pandemic aid and spending package. Strong resistance can be seen at 103.66 (50%fib), an upside break can trigger rise towards 103.86 (61.8%fib).On the downside, immediate support is seen at 103.30 (23.6%fib), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European shares marked their strongest close in 10 months on Monday, with German shares hitting a record high as relief over long-awaited U.S. coronavirus relief, a Brexit trade deal and a vaccine programme lifted spirits in thin holiday trade.
Germany's Dax ended up by 1.49 percent, France’s CAC finished the day up by 1.20 percent.
U.S. stocks rallied on Monday, with each of Wall Street’s main indexes closing at record levels as President Donald Trump’s signing of a long-awaited $2.3 trillion pandemic aid bill increased optimism for an economic recovery.
Dow Jones closed up by 0.68% percent, S&P 500 closed up by 0.87% percent, Nasdaq settled up by 0.74% percent.
Treasuries Recap
U.S. Treasury yields edged higher on Monday in a holiday-shortened week, as risk appetite rose with shares on Wall Street hitting record highs again after President Donald Trump signed into law overnight an additional coronavirus relief package.
U.S. benchmark 10-year yields was little changed at 0.934% from 0.93% late on Thursday.
Commodities Recap
Gold prices pared gains in choppy trading on Monday as the dollar recovered and stock markets continued their rally, while U.S. President Donald Trump's signing of a long-awaited pandemic aid bill offered support.
Spot gold was little changed at $1,875.99 per ounce by 2:20 p.m. EST (1920 GMT). U.S. gold futures settled down 0.2% at $1,880.40.
Oil prices fell on Monday as concerns about weakening fuel demand and the prospect of higher OPEC+ output outweighed optimism over a U.S. stimulus package.
Brent crude settled at $50.86 a barrel, falling 43 cents, or 0.84%, after trading as high as $52.02 earlier in the session. U.S. West Texas Intermediate (WTI) crude settled at $47.62 a barrel, losing 61 cents, or 1.26%.
