Market Roundup
•Swiss Dec ZEW Expectations 0.0, -10.8 previous
•EU Nov Loans to Non Financial Corporations 2.9%,2.5% previous
•EU Private Sector Loans (YoY) 4.2%,4.2% forecast, 4.1% previous
Looking Ahead - Economic Data (GMT)
•13:30 US Wholesale Inventories (MoM) 1.8% forecast,2.3% previous
•13:30 US Nov Goods Trade Balance -89.00B forecast, -83.20B previous
•13:30 US Nov Retail Inventories Ex Auto 0.5% previous
•13:30 US Nov Pending Home Sales (MoM) 0.5%,7.5 previous
•15:30 US Gasoline Inventories -0.031M forecast, 5.533M previous
•15:30 US Crude Oil Inventories-3.233M forecast, -4.715M previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro fell in thin holiday trading on Wednesday as surging cases of coronavirus weighed on single currency. Euro also dipped on worries about the country's political stability should the former ECB chief Mario Draghi leave his job as a prime minister.Draghi is the leading candidate to become Italian president in a parliamentary vote, which will take place in January. The euro was up 0.02 percent at $1.1281. Immediate resistance can be seen at 1.1293 (50%fib), an upside break can trigger rise towards 1.1315 (38.2%fib).On the downside, immediate support is seen at 1.1272(61.8%fib), a break below could take the pair towards 1.1200(Psychological level).
GBP/USD: Sterling dipped against dollar on Wednesday as increase in coronavirus cases raised worries about the chances of a global economic recovery next year weighing on pound. Britain reported a record 129,471 new cases of COVID-19 on Tuesday, a day after Prime Minister Boris Johnson said he would not bring in new restrictions this year to limit the spread of the Omicron coronavirus variant. Immediate resistance can be seen at 1.3468(38.2%fib), an upside break can trigger rise towards 1.3534(23.6%fib).On the downside, immediate support is seen at 1.3406(50 %fib), a break below could take the pair towards 1.3347(61.8%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as dollar recovered in holiday thinned trading. The dollar was also supported by a rise in two-year Treasury yields which hit 0.758% on Tuesday, a near two-year high, before slipping marginally to 0.7461%. The dollar index , which measures the greenback against major peers, rose as high as 96.240 versus Monday's close of 96.068, moving up against most other majors after the euro lost 0.14% on Tuesday.Immediate resistance can be seen at 0.9177 (5DMA), an upside break can trigger rise towards 0.9197 (38.2%fib).On the downside, immediate support is seen at 0.9160 (50%fib), a break below could take the pair towards 0.9121 (61.8% fib ).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as safe-haven yen fell as dollar recovered sharply on increased risk appitite. The dollar rose versus the safe-haven yen, gaining 0.1% to 114.98 , its strongest since late November. While the yen has been battered by the strength of investors' risk appetite, analysts said end-of-quarter investor flows were also impacting the currency. 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
A Christmas rally in European shares paused near five-week highs on Wednesday, as investors exercised a bit of caution going into the end of the year with Omicron coronavirus cases swelling globally.
At (GMT 10:30 ),UK's benchmark FTSE 100 was last trading up at 0.98 percent, Germany's Dax was down by 0.38percent, France’s CAC finished was up by 0.01 percent.
Commodities Recap
Gold edged lower on Wednesday in slim trading as dollar strengthened and U.S. Treasury yields steadied after falling earlier in the session, though prices remained above the key level of $1,800 per ounce.
Spot gold was last down 0.2% at $1,802.67 per ounce by 0821 GMT. U.S. gold futures dropped 0.4% to $1,803.00.
Oil prices edged higher on Wednesday after rallying overnight as industry data showed a decline in U.S. inventories, boosting demand sentiment.
Brent crude rose 26 cents, or 0.3%, at $79.20 a barrel by 0759 GMT. U.S. West Texas Intermediate (WTI) crude climbed 19 cents, or 0.2%, to $76.17 a barrel.
