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  |   Market Roundups


Europe Roundup: Sterling gains against dollar on rate rise bets, European shares rises, Gold inches up, Oil prices steady ahead of OPEC+ meeting-January 4th,2021

Market Roundup

• German Nov Retail Sales (YoY)  -2.9%,-4.9% forecast,-2.9% previous

• German Nov Retail Sales (MoM)  0.6% ,-0.5% forecast,,-0.5% previous

• Swiss Dec CPI (MoM)                 -0.1%,-0.1% forecast,0.3% previous

• French HICP (MoM)0.2% forecast,0.4 forecast %,0.4% previous

• French CPI (MoM)  0.2%,0.4%  previous

• German Dec Unemployment Change  -23K, -15K forecast ,-34K previous

•German Dec Unemployment Rate  5.2%, 5.3% forecast , 5.3% previous

•UK Dec Manufacturing PMI  57.9 , 57.6 forecast ,  58.1 previous

Looking Ahead Economic Data

• 13:30 Canada IPPI Nov (MoM)  0.8% forecast , 1.3% previous

•13:30 Canada Nov RMPI (MoM)  4.8% previous

•13:30 Canada Nov RMPI (YoY)  38.4% previous

•15:00 US Dec ISM Manufacturing Employment  53.5 forecast,53.3 previous

•15:00 US Dec ISM Manufacturing PMI 60.0, 61.1 previous

•15:00 US Nov JOLTs Job Openings 11.075M, 11.033M previous

Looking Ahead - Events, Other Releases (GMT)

• No data ahead


EUR/USD: The euro   hovered around 1.300 level against dollar on Tuesday, a day after a surge in U.S. Treasury yields kept bond investors on edge over rising inflation and tighter monetary policy. Investors are keeping a close watch on inflation and how the Fed may respond if it proves to be other than transitory. The United States will release its employment data and purchasing managers' indexes (PMI) this week. A series of Purchasing Managers’ Indexes should give investors a read on the momentum of the restart.  Immediate resistance can be seen at 1.1309(38.2%fib), an upside break can trigger rise towards 1.1342 (23.6%fib).On the downside, immediate support is seen at 1.1283(50%fib), a break below could take the pair towards 1.1256 (61.8%fib).

GBP/USD: Sterling strengthened against the dollar on Tuesday as sterling was supported by a continued rise in gilt yields on growing expectation the Bank of England will raise interest rates next month. Two-year and 10-year British government borrowing costs rose to two-month highs, up six basis points on the day , after Prime Minister Boris Johnson said new measures were not needed to fight the Omicron coronavirus variant and also tracking Monday's rise in U.S. yields. By 0930 GMT, the pound gained 0.22% against the dollar at 1.35, holding close to six-week highs of $1.355 hit on Dec. 31. 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 1.3577 (Higher BB).On the downside, immediate support is seen at 1.3462(38.2%fib), a break below could take the pair towards 1.3404 (50%fib).

 USD/CHF: The dollar rose against the Swiss franc on Tuesday as investors looked beyond clouds cast by the rapidly spreading cases of the Omicron coronavirus variant. The Omicron coronavirus variant appears to be far more contagious than previous iterations, but data suggests it may be less virulent than Delta, which led to various nations taking strict preventive measures. Immediate resistance can be seen at 0.9190 (23.6%fib), an upside break can trigger rise towards 0.9209 (30DMA).On the downside, immediate support is seen at 0.9144(38.2% fib), a break below could take the pair towards 0.9123(Lower BB).

USD/JPY: The U.S. dollar rose to a five-year high versus the yen on Tuesday, boosted by expectations of U.S. Federal Reserve rate hikes, as investors bet that the fast-spreading Omicron coronavirus variant would have limited economic impact. The dollar's gains were helped by a rise in U.S. treasury yields, as investors bet on the Fed raising rates, with the U.S. 2-year and 5-year notes soaring to their highest since March 2020. At 0839 GMT, the dollar index was up 0.1% at 96.278, having exceeded Monday's gains to reach a six-day high of 96.335 earlier in the session .Strong resistance can be seen at 116.00(Psychological level), an upside break can trigger rise towards 116.13 (23.6%fib).On the downside, immediate support is seen at 115.53 (38.2%fib), a break below could take the pair towards 115.00(50%fib).

Equities Recap

European stocks extended the new year rally on Tuesday, led by economy-sensitive travel, banking and commodity stocks on fresh signs that the Omicron virus variant might be less severe than initially feared.

At (GMT 11:03 ),UK's benchmark FTSE 100 was last trading up at 1.29 percent, Germany's Dax was up by 0.91 percent, France’s CAC was last up by 1.33 percent.

Commodities Recap

Gold inched up on Tuesday after a spike in U.S. bond yields spurred by bets on earlier-than-expected interest rate hikes from the Federal Reserve led to bullion's worst sell-off in six weeks in the previous session.

Spot gold was up 0.2% at $1,804.40 per ounce by 0819 GMT, after prices hit a more than one-month high of $1,831.62 on Monday before reversing course to close 1.5% lower. U.S. gold futures were up 0.3% at $1,805.

Oil prices were largely steady on Tuesday as investors expected major producers to agree to stick to their planned output increase at their meeting later in the day amid diminishing concerns over the spread of the Omicron variant of COVID-19.

Brent crude was up 22 cents, or 0.3%, at $79.20 a barrel at 0939 GMT, while U.S. West Texas Intermediate (WTI) crude rose by 21 cents, or 0.3%, to $76.29 a barrel.

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