Market Roundup
- Switzerland Nov 2018 official reserves assets CHF decrease to 795371.66 CHF vs previous 798896.21 CHF
- Greece Oct 2018 retail sales yy decrease to -4 % vs previous 2.9 % (revised from 3.3 %)
- Italy to hold European parliament election on May 26 - Salvini
- Italy's deputy PM Salvini says he does not see need for government reshuffle
Economic Data Ahead
- (1030 ET/1530 GMT) Dallas Fed Manufacturing Business Index
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index eased, hovering towards a 1-week low touched in the previous session, amid fading expectations of further interest rate increases from the Federal Reserve. The greenback against a basket of currencies trades 0.2 percent down at 96.26, having touched a low of 96.19 on Friday, its lowest since December 20.
EUR/USD: The euro consolidated within narrow ranges, as broader markets remain sedate and volumes steeply decreased as investors pull back for the year's end. The European currency traded flat at 1.1443, having touched a high of 1.1472 on Friday, its highest since Dec. 21. Immediate resistance is located at 1.1472 (November 20 High), a break above targets 1.1500 (November 7 High). On the downside, support is seen at 1.1393 (November 19 Low), a break below could drag it till 1.1318 (December 4 Low).
USD/JPY: The dollar slumped to a 4-month low against the Japanese yen, amid growing expectations that a three-year rate hiking cycle in the United States has come to an end. The major was trading 0.2 percent down at 110.03, having hit a low of 110.01 earlier, its lowest since August 20. Investors’ will continue to track the broad-based market sentiment, ahead of the Dallas Fed manufacturing business Index. Immediate resistance is located at 110.61 (Aug. 22 High), a break above targets 111.24 (Sept. 10 High). On the downside, support is seen at 109.77 (August 21 Low), a break below could take it lower 109.360 (June 26 Low).
GBP/USD: Sterling rallied to a 3-week peak after Britain Foreign Minister Jeremy Hunt stated that the UK PM May’s Brexit deal could pass the parliament if the European Union offers clarification over the Irish backstop. The major traded 0.4 percent up at 1.2744, having hit a high of 1.2749 earlier; it’s highest since Dec. 10. Immediate resistance is located at 1.2759 (December 10 High), a break above could take it near 1.2811 (December 6 High). On the downside, support is seen at 1.2658 (December 4 Low), a break below targets 1.2600. Against the euro, the pound was trading 0.3 percent up at 89.82 pence, having hit a low of 90.61 on Thursday, it’s lowest since December 12.
USD/CHF: The Swiss franc steadied after falling to a 2-month peak in the previous session, as tensions over a trade dispute between the United States and China dented expectations of progress in trade talks. The major trades flat at 0.9837, having touched a low of 0.9789 on Friday; it’s lowest since September 28. On the higher side, near-term resistance is around 0.9909 (October 16 High) and any break above will take the pair to next level till 0.9965 (December 12 High). The near-term support is around 0.9797 (Oct. 1 Low), and any close below that level will drag it till 0.9739 (Sept. 28 Low).
Equities Recap
European shares nudged higher, supported by upbeat comments from Washington and Beijing about trade frictions between both the economies.
The pan-European STOXX 600 index gained 0.3 percent at 337.35 points, while the FTSEurofirst 300 index surged 0.4 percent to 1,332.05 points.
Britain's FTSE 100 trades 0.2 percent up at 6,749.15 points, while mid-cap FTSE 250 gained 0.5 to 17,556.96 points.
Germany's DAX rose 1.7 percent at 10,558.96 points; France's CAC 40 trades 0.7 percent higher at 4,711.03 points.
Commodities Recap
Crude oil prices surged about 2 percent but were on track for the first annual decline in three years amid lingering concerns of a persistent supply glut. International benchmark Brent crude was trading 2.1 percent up at $54.10 per barrel by 0950 GMT, having hit a low of $50.05 on Wednesday, its lowest since September 2017. U.S. West Texas Intermediate was trading 2.1 percent up at $45.96 a barrel, after falling as low as $43.34 last week, its lowest since early June 2017.
Gold prices rose but were heading for their first annual decline since 2015, amid trade worries, higher interest rates and concerns over slowing global growth. Spot gold was trading 0.1 percent up at $1,282.10 per ounce by 0957 GMT, having touched a high of $1,282.58 earlier, its highest level since June 19. U.S. gold futures were near flat $1,283.4 per ounce.
Treasuries Recap
The U.S. 10-year Treasury bond yield was at 2.71 percent, having fallen nearly 30 basis points in December.
