Market Roundup
• AstraZeneca vaccine approval in Britain boosts sterling
•Euro hits highest since April 2018 vs dollar
•Spanish CPI (YoY) -0.5% ,-0.8% previous
•Spanish CPI (MoM) 0.2%,0.2% previous
•Spanish HICP (MoM) 0.1%, 0.1% forecast, 0.1% previous
•Spanish Dec HICP (YoY) -0.6%,-0.7% forecast, -0.8% previous
•Switzerland Dec ZEW Expectations 46.8, 30.0 previous
Looking Ahead - Economic data (GMT)
•13:30 US Nov Goods Trade Balance -80.42B previous
•13:30 US Nov Retail Inventories Ex Auto 0.8% previous
•13:30 US Wholesale Inventories (MoM) 1.1% previous
•14:45 US Dec Chicago PMI 57.0 forecast, 58.2 previous
•15:00 US Nov Pending Home Sales Index 128.9 previous
•15:00 US Nov Pending Home Sales (MoM) 0.2%,-1.1% previous
•15:30 US Cushing Crude Oil Inventories-0.026M
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Fxbeat
EUR/USD: The euro rose against dollar on Wednesday as investors looked past rising COVID-19 infections and the latest delay in U.S. fiscal stimulus talks and bet on an economic recovery in 2021. Market sentiment was upbeat as investors remained optimistic that a fiscal stimulus deal will be eventually reached and that COVID-19 vaccines will facilitate a global economic recovery, lessening demand for the safe-haven dollar. The euro was up at $1.22715. Immediate resistance can be seen at 1.2294 (23.6%fib), an upside break can trigger rise towards 1.2300(Psychological level).On the downside, immediate support is seen at 1.2212(11DMA), a break below could take the pair towards 1.2183 (38.2%fib).
GBP/USD: Sterling rose against dollar on Wednesday as after Britain approved a coronavirus vaccine developed by AstraZeneca and Oxford University, though surging COVID-19 cases in the country kept investors cautious. The regulatory approval is a welcome boost for AstraZeneca, which has been accused of lack of clarity about the results from late-stage trials. is struggling to contain the coronavirus pandemic, with the country recording one of the world's highest death tolls of around 65,000 by mid-December. Immediate resistance can be seen at 1.3623 (23.6%fib), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, immediate support is seen at 1.3522(38.2%fib), a break below could take the pair towards 1.3485 (21DMA).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as greenback remained locked in a downtrend, while investors wagered the widening rollout of vaccines would bolster global growth. The dollar index hit a more than two-year low, as traders shrugged off Republican Senate Majority Leader Mitch McConnell’s decision to delay a vote on increasing COVID-19 relief checks to $2,000. Investors await the Jan. 5 Georgia runoff elections that will determine which political party will control the U.S. Senate, with expectations for more stimulus under a Democrat-controlled Senate and House. Immediate resistance can be seen at 0.8868 (11DMA), an upside break can trigger rise towards 0.8874 (38.2%fib).On the downside, immediate support is seen at 0.8811 (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 Wednesday as investors weighed news that U.S. Senate Majority Leader Mitch McConnell postponed a vote on increased pandemic aid checks to individuals. McConnell on Tuesday delayed a vote on President Donald Trump's demand to increase COVID-19 relief checks to $2,000, in a rare challenge to his fellow Republican three weeks before he vacates the White House. Coronavirus cases continue to soar globally, with Britain reporting the highest number of new infections since mass testing began in mid-2020, while the first case of a new infectious virus variant was found in the United States .Strong resistance can be seen at 103.05 (38.2%fib), an upside break can trigger rise towards 103.91 (50%fib).On the downside, immediate support is seen at 102.88 (23.6%fib), a break below could take the pair towards 102.00 (Psychological level).
Equities Recap
European stocks inched higher on Wednesday as UK’s approval of AstraZeneca’s COVID-19 vaccine, bets of more U.S. fiscal aid and large-scale vaccination efforts spurred hopes of a strong recovery in the global economy next year.
At (GMT 13:00) , UK's benchmark FTSE 100 was last trading up by 0.01 percent Germany's Dax was up by 0.04 percent, France’s CAC was last up by 0.39 percent.
Commodities Recap
Oil gained ground on Wednesday on the back of a weaker dollar, a decline in U.S. crude oil inventories and as Britain approved another coronavirus vaccine, but both benchmark contracts were set to end the year about 20% lower.
Brent crude futures rose 45 cents to $51.54 a barrel by 1001 GMT, having started the year above $66.
U.S. West Texas Intermediate (WTI) crude added 39 cents to trade at $48.39, down from around $62 at the beginning of 2020.
Gold prices held steady on Wednesday, as Britain’s approval of the COVID-19 vaccine developed by AstraZeneca and Oxford University drove appetite for risk and a weaker dollar limited bullion’s losses in thin holiday trade.
Spot gold was little changed at $1,878.52 per ounce by 1017 GMT. U.S. gold futures were flat at $1,883.
