Market Roundup
•Sweden Nov Household Lending Growth (YoY) 5.3%, 5.3% previous
• Sweden Nov Trade Balance 1.40B, 4.70B previous
• US Redbook (MoM) 0.4%,-0.9% previous
• US Redbook (YoY) 8.9%, 6.5% previous
• US Oct S&P/CS HPI Composite - 20 s.a. (MoM) 1.6%,1.0%,1.3% previous
•US S&P/CS HPI Composite - 20 n.s.a. (MoM) 1.3%, 1.2% previous
•US Oct S&P/CS HPI Composite - 20 n.s.a. (YoY) 7.9%, 6.9% forecast, 6.6% previous
Looking Ahead - Economic data (GMT)
•15:30 US Dec Dallas Fed Services Revenues -0.7 previous
•15:30 US Dec Texas Services Sector Outlook -2.6 previous
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Fxbeat
EUR/USD: The euro rose against dollar on Tuesday as investors were encouraged to take on more risk after U.S. lawmakers pushed forward with an enhanced COVID-19 relief package. The House of Representatives voted on Monday to more than triple stimulus payments to Americans to $2,000 from $600, sending the plan on to the Senate for a vote. Euro bulls pushed the single currency up to $1.2235, also buoyed by talk of a EU-China trade pact. 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 strengthened against dollar on Tuesday as investor were encouraged by a Brexit trade deal and hopes a long-awaited U.S. pandemic relief package will be expanded. Britain clinched a narrow Brexit trade deal with the EU on Thursday, just seven days before it exits one of the world’s biggest trading blocs. Sterling rose 0.2% to $1.3484 following a two-day dip. It was as high as $1.3625 this month, a level unseen since May 2018, but investors have taken some profits since the Brexit trade deal was struck. Immediate resistance can be seen at 1.3524 (38.2%fib), an upside break can trigger rise towards 1.3617 (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/CHF: The dollar declined against the Swiss franc on Tuesday as the dollar weakened after the approval of larger coronavirus relief checks by Democratic-led U.S. House of Representatives. The package covers $1.4 trillion in spending to fund government agencies and $892 billion in COVID-19 relief, including $2,000 relief cheques to help cushion the economic impact of the pandemic. U.S. dollar, which is often seen as a safe-haven asset, was down 0.3% against a basket of currencies and eyeing the 18-month low hit in November. Immediate resistance can be seen at 0.8868 (50%fib), an upside break can trigger rise towards 0.8885 (38.2%fib).On the downside, immediate support is seen at 0.8840 (23.6%fib), a break below could take the pair towards 0.8800(Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday on hopes of an expanded U.S. stimulus package with the U.S. Senate set to vote on $2,000 COVID-19 relief checks weakened demand for greenback. The Democrats-led U.S. House of Representatives voted in favour of President Donald Trump's demand for $2,000 COVID-19 relief checks on Monday from the previous $600. However, it has to still pass the Republican-controlled Senate. Strong resistance can be seen at 103.81 (38.2%fib), an upside break can trigger rise towards 103.91 (30DMA).On the downside, immediate support is seen at 103.66 (5EMA), a break below could take the pair towards 103.38 (23.6%fib).
Equities Recap
European stocks extended their year-end rally on Tuesday as a Brexit trade deal, hopes of an expanded U.S. stimulus package and euro zone’s marathon COVID-19 vaccination campaign brightened prospects for global growth in 2021.
At (GMT 13:00) , UK's benchmark FTSE 100 was last trading up by 2.02 percent Germany's Dax was up by 0.13 percent, France’s CAC was last up by 0.39 percent.
Commodities Recap
Gold prices rose on Tuesday as the dollar weakened after the approval of larger coronavirus relief checks by Democratic-led U.S. House of Representatives, while improved risk appetite kept it below last session’s one-week high.
Spot gold rose 0.4% to $1,877.65 per ounce by 1214 GMT. The metal climbed as much 1.3% on Monday after U.S. President Donald Trump’s approval of a $2.3 trillion stimulus package.
Oil rose on Tuesday as the United States moved towards expanding pandemic aid payments, potentially spurring fuel demand and stimulating economic growth, which pushed investors to take on more risk.
Brent crude was up 72 cents, or 1.4%, at $51.58 a barrel by 1057 GMT, while U.S. West Texas Intermediate (WTI) crude futures added 67 cents, or 1.4%, to $48.29 a barrel.
