Market Roundup
•Canada Nov Trade Balance -3.34B,-3.50B forecast, -3.76B previous
•US Imports 252.30B,245.10B previous
•US Exports 184.20B, 182.00B previous
•US Jobless Claims 4-Week Avg 818.75K , 836.75K previous
•US Initial Jobless Claims 787K, 800K forecast, 787K previous
•US Continuing Jobless Claims 5,072K, 5,200K forecast, 5,219K previous
•Canada Nov Exports 46.76B, 46.47B previous
•Canada Nov Imports 50.10B,50.23B previous
•US Nov Trade Balance -68.10Bm -65.20B forecast, -63.10B previous
•Canada Dec Ivey PMI n.s.a 53.9, 52.4 previous
•15:00 US Dec ISM Non-Manufacturing PMI 57.2,54.6 forecast, 55.9 previous
•US Dec ISM Non-Manufacturing Business Activity 59.4, 55.0 forecast, 58.0 previous
•US Dec ISM Non-Manufacturing Employment 48.2, 51.5 previous
•US ISM Non-Manufacturing New Orders 58.5 , 57.2 previous
•Canada Dec Ivey PMI 46.7, 54.7 forecast, 52.7 previous
•US Natural Gas Storage -130B,-114B previous
Looking Ahead – Economic Data (GMT) previous
•Japan Nov Household Spending (YoY) -1.5% forecast,1.9% previous
•Japan Nov Household Spending (MoM) -1.3% forecast, 2.1% previous
•Japan Dec Foreign Reserves (USD) 1,384.6B previous
•10:30 Japan Nov Leading Index (MoM) 1.0% previous
•10:30 Japan Nov Coincident Indicator (MoM) 4.6% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Thursday as weak inflation data weighed on euro. Economic sentiment in the euro zone improved as expected in December, but consumer price trends stayed in negative territory, below analysts’ consensus forecast. Todays inflation reading could be the last negative figure in the current cycle as a temporary German value added tax cut expired at the end of 2020 and crude oil prices are up around 45% since the start of November. Immediate resistance can be seen at 1.2356 (23.6%fib), an upside break can trigger rise towards 1.2400(Psychological level).On the downside, immediate support is seen at 1.2238 (38.2%fib), a break below could take the pair towards 1.2162 (50%fib).
GBP/USD: Sterling held below a 2-1/2 year high on Thursday as speculation swirled that the Bank of England could bring in sub-zero benchmark interest rates earlier to counter the economic hit from a third coronavirus national lockdown.The pound has shed some of its post-Brexit trade deal gains this week, as traders refocussed on the impact of the COVID-19 crisis after restrictions in Britain were tightened. Sterling edged lower against the dollar, trading around the $1.3589 mark. It climbed above $1.37 for the first time since May 2018 on Monday. Immediate resistance can be seen at 1.3682 (100 DMA), an upside break can trigger rise towards 1.3759 (Higher BB).On the downside, immediate support is seen at 1.3595 (38.2%fib), a break below could take the pair towards 1.3523 (50%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, retreating from near a three-year high the day before, as the greenback rallied against a basket of major currencies, while data showed Canada's trade deficit narrowing in November. Canada's trade deficit narrowed to C$3.3 billion in November from a revised C$3.7 billion in October as exports increased and imports edged down, data from Statistics Canada showed. The loonie was trading 0.1% lower at 1.2682 to the greenback, or 78.85 U.S. cents. The currency traded in a range of 1.2663 to 1.2733. On Wednesday, it touched its strongest level since April 2018 at 1.2626. Immediate resistance can be seen at 1.2733(38.2%fib), an upside break can trigger rise towards 1.2800 (50%fib).On the downside, immediate support is seen at 1.2659 (23.6%fib), a break below could take the pair towards 1.2600(Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as civil unrest in the United States prompted a measure of profit taking and safe-haven buying for greenback. Hundreds of President Donald Trump’s supporters stormed the U.S. Capitol on Wednesday in a bid to overturn his election defeat, battling police in the hallways and delaying the certification of Democratic President-elect Joe Biden’s victory for hours. The dollar index, which measures the U.S. currency against a basket of peers, rose 0.6% to 89.886. At (GMT 12:40), the yen was last down 0.57 % at 103.59. Strong resistance can be seen at 103.75(38.2%fib), an upside break can trigger rise towards 104.10 (50%fib).On the downside, immediate support is seen at 103.27(38.2%fib), a break below could take the pair towards 102.91 (Daily low).
Equities Recap
European stocks climbed for a second straight session on Thursday as construction stocks gained on upbeat sales forecast from Saint Gobain and commodity-linked shares rose on hopes of larger U.S. stimulus after Democrats won Senate control.
UK's benchmark FTSE 100 closed up by 0.22 percent, Germany's Dax ended up by 0.55 percent, France’s CAC finished the day up by 0.70 percent.
U.S. stock index futures climbed on Thursday as expectations of more pandemic aid under a Democrat-controlled U.S. Congress lifted the mood ahead of jobs data, which is expected to show a rise in weekly claims.
Dow Jones closed up by 0.69 percent, S&P 500 was ended higher by 1.48 percent, Nasdaq settled up by 2.58percent.
Treasuries Recap
U.S. Treasuries prices extended their steepest sell-off in months, with the benchmark yield at its highest in 10 months, after victories in two Georgia races handed the Democratic Party narrow control of the U.S. Senate, bolstering Biden’s power to pass his agenda as his party controls both chambers
Benchmark 10-year notes last fell 10/32 in price to yield 1.0761%, from 1.042% late on Wednesday.
Commodities Recap
Gold eased on Thursday on a stronger dollar and higher U.S. Treasury yields, but prospects of more fiscal stimulus under a Democrat-led administration in Washington capped losses.
Spot gold was down 0.3% to $1,912.86 per ounce by 10:39 a.m. EST (1539 GMT). U.S. gold futures were up 0.3% at $1,913.90.
Oil prices settled higher on Thursday, hitting 11-month peaks, as markets remained focused on Saudi Arabia’s unexpected pledge to deepen its oil cuts and firmer equities, shrugging off political turmoil in the United States.
Brent crude settled up 8 cents to $54.38 a barrel after touching $54.90, a high not seen since before the first COVID-19 lockdowns in the West.
U.S. West Texas Intermediate (WTI) settled up 20 cents to $50.83, after hitting a session high at $51.28.
