Market Roundup
•Italian Dec Manufacturing PMI 62.0, 61.5 forecast, 62.8 previous
•French Dec Manufacturing PMI 55.6, 54.9 forecast, 55.9 previous
•German Dec PMI 57.4,57.9 forecast, 57.4 previous
•EU Dec Manufacturing PMI 58.0, 58.0 forecast,58.4 previous
Looking Ahead Economic Data
•14:00 French 6-Month BTF Auction-0.675% previous
•14:00 French 3-Month BTF Auction-0.764% previous
•14:00 French 12-Month BTF Auction-0.644% previous
•14:45 US Dec Manufacturing PMI 57.8 forecast, 58.3 previous
•15:00 US Nov Construction Spending (MoM) 0.6% forecast, 0.2% previous
•16:30 US 6-Month Bill Auction 0.210% previous
Looking Ahead - Events, Other Releases (GMT)
• No data ahead
Fxbeat
EUR/USD: The euro edged lower against dollar on Monday after data showed German manufacturers PMI was unchanged . IHS Markit's Final Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of the economy, was unchanged at 57.4, slightly lower than a flash reading of 57.9.The outlook for factories in Europe's biggest economy has been clouded by shortages of semiconductors and raw materials, affecting the German auto industry in particular. The euro slipped 0.21% to $1.1345. Immediate resistance can be seen at 1.13622 (23.6%fib), an upside break can trigger rise towards 1.1387 (23.6%fib).On the downside, immediate support is seen at 1.1342 (50%fib), a break below could take the pair towards 1.1326 (61.8%fib).
GBP/USD: Sterling dipped against the dollar on Monday as a surge in COVID-19 infections globally due to the Omicron variant dampened risk appetite. Peak of a wave of coronavirus infections caused by the highly contagious Omicron variant, a surge of infections in other countries remained a concern for investors. Investor focus at the start of the new year was also on how the U.S. Federal Reserve plans to taper monetary stimulus, especially in light of the spreading Omicron variant. Sterling dipped 0.05% at $1.3517.Immediate resistance can be seen at 1.3540 (23.6%fib), an upside break can trigger rise towards 1.3591 (Higher BB).On the downside, immediate support is seen at 1.3494(5DMA), a break below could take the pair towards 1.3464 (38.2%fib).
USD/CHF: The dollar strengthened against the Swiss franc as an upbeat market mood on Monday lifted European equities and government bond yields for the first day of trading of 2022. While the surge in coronavirus cases caused by the Omicron variant continued to disrupt global travel and public services, hopes were high that the economic damage of stringent lockdowns can be avoided.But with London, Europe's main FX trading centre closed for a market holiday, volume was expected to remain limited. Immediate resistance can be seen at 0.9144 (38.2%fib), an upside break can trigger rise towards 0.9190 (23.6%fib).On the downside, immediate support is seen at 0.9108(50%fib), a break below could take the pair towards 0.9072 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as traders focus turned to US data this week, while currencies weakened as concerns over the Omicron variant remanined on the first trading day of the year. Investors are closely watching how the U.S. Federal Reserve will taper its monetary policy, as it faces the economic risks from the Omicron variant and rising inflation rates.Strong resistance can be seen at 115.23 (23.6%fib), an upside break can trigger rise towards 115.35 (Higher BB).On the downside, immediate support is seen at 114.99 (5DMA), a break below could take the pair towards 114.60(38.2%fib).
Equities Recap
European shares hit all-time highs on Monday, starting the year in an upbeat mood on hopes of steady economic recovery despite a surge in COVID-19 cases due to the Omicron variant.
At (GMT 11:30) Germany's Dax was up by 1.02 percent, France’s CAC was last up by 1.19 percent.
Commodities Recap
Gold prices slipped on Monday as higher bond yields and rallying equities weighed on the metal's safe-haven appeal as the new year gets under way, pushing it down from a six-week peak hit earlier in the session.
Spot gold fell 0.3% to $1,823.63 an ounce by 1131 GMT, having touched its highest since Nov. 22 at $1,831.62. U.S. gold futures edged 0.1% down to $1,826.40.
Oil rose towards $79 a barrel on Monday supported by tight supply and hopes of further demand recovery in 2022 spurred in part by a view that the Omicron coronavirus variant is unlikely to significantly dampen the outlook.
Brent crude rose 95 cents, or 1.2%, to $78.73 a barrel as of 0923 GMT. U.S. West Texas Intermediate (WTI) crude added $1.03 or 1.4%, to $76.24.
