Market Roundup
•Finnish Dec Industrial Confidence 18, 24 previous
•Finnish Dec Consumer Confidence -3.5 , 1.2 previous
Looking Ahead - Economic Data (GMT)
•15:30 US Dec Dallas Fed Mfg Business Index 11.8 previous
•16:30 US 6-Month Bill Auction 0.160% previous
•16:30 US 3-Month Bill Auction 0.075% previous
•17:00 Brazil Federal Tax Revenue 178.74B previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro edged higher on Monday as investors focused on central banks’ tapering while trying to assess the potential impact on markets should former ECB boss Mario Draghi leave his job as Italian prime minister in January. Parliament will convene to choose a new Italian president in January, and the former European Central Bank chief is the most favoured candidate. Draghi has signalled he would be willing to become head of state. The euro was up 0.01 percent at $1.1314. Immediate resistance can be seen at 1.1326(38.2%fib), an upside break can trigger rise towards 1.1357 (23.6%fib).On the downside, immediate support is seen at 1.1302(50 % fib), a break below could take the pair towards 1.1275 (61.8%fib).
GBP/USD: Sterling was little changed against dollar Monday in quiet trade on Monday as flight cancellations over Christmas revived concerns that the Omicron virus variant could slow down the economy heading into the new year.U.S. airlines have cancelled or delayed thousands of flights over the past three days due to COVID-19-related staff shortages, while several cruise ships had to cancel stops after outbreaks aboard. Sterling was last trading up 0.10% at $1.3400. Immediate resistance can be seen at 1.3420(Daily high), an upside break can trigger rise towards 1.3437(38.2%fib).On the downside, immediate support is seen at 1.3388(50 %fib), a break below could take the pair towards 1.3361 (5 DMA).
USD/CHF: The dollar initially gained against the Swiss franc on Monday but gave up ground as worries over the economic impact from the Omicron coronavirus variant weighed on investors sentiment. Coronavirus infections have eased in the past few weeks in central Europe although the region has yet to really face a spike on Omicron cases like in western Europe. At (GMT 11:09), greenback gained 0.16% versus the Swiss franc to 0.9186.Immediate resistance can be seen at 0.9685(21 DMA), an upside break can trigger rise towards 0.9189 (5DMA).On the downside, immediate support is seen at 0.9200 (38.2% fib), a break below could take the pair towards 0.9157 (Lower BB ).
USD/JPY: The dollar strengthened against the Japanese yen on Monday but gains were capped as China and Japan faced prospects of tighter curbs amid rising COVID-19 cases. Financial market activity was subdued in the last week of the year with some centres closed for public holidays. The dollar index , which measures the currency against six major peers, was up 0.1% at 96.23, around the midpoint of the trading range seen over the past few weeks. Strong resistance can be seen at 114.70(23.6%fib), an upside break can trigger rise towards 115.00 (Psychological level).On the downside, immediate support is seen at 114.31 (5DMA), a break below could take the pair towards 114.10(38.2%fib).
Equities Recap
European shares steadied in quiet trade on Monday as flight cancellations over Christmas revived concerns that the Omicron virus variant could slow down the economy heading into the new year..
At (GMT 11:15),UK's benchmark FTSE 100 was last trading up at 0.02 percent, Germany's Dax was up by 0.10 percent, France’s CAC was last up by 0.04 percent.
Commodities Recap
Gold prices edged lower in thin trade on Monday as the U.S. dollar rebounded, though bullion was still hovering close to a one-week high as concerns over the Omicron coronavirus variant increased safe-haven demand.
Spot gold fell 0.1% to $1,806.60 an ounce by 1012 GMT but remained above the reached $1,800 last week. U.S. gold futures slipped 0.2% to $1,807.40.
U.S. oil fell on Monday after airlines called off thousands of flights over the Christmas holidays amid surging COVID-19 cases, though Brent crude gained support from hopes that the Omicron variant will have limited impact on global demand.
U.S. West Texas Intermediate (WTI) crude was down 85 cents, or 1.2%, at $72.94 a barrel by 1100 GMT. The U.S. market was closed on Friday for a holiday. Global benchmark Brent crude rose 11 cents, or 0.1%, to $76.25.
