Market Roundup
•UK Oct Average Earnings ex Bonus 2.8%,2.6% forecast, 1.9% previous
•UK Oct Average Earnings Index +Bonus 2.7%,2.2% forecast, 1.3% previous
•UK Nov Claimant Count Change 64.3K, 50.0K forecast, -29.8K previous
•UK Oct Employment Change 3M/3M (MoM) -144K, -250K forecast, -164K previous
•UK Oct Unemployment Rate 4.9%, 5.1% forecast, 4.8% previous
•Swiss Nov PPI (MoM) -0.1%,0.0% previous
•Swiss Nov PPI (YoY) -2.7%,-2.9% previous
•French Nov HICP (MoM) 0.2%, 0.2% forecast, 0.1% previous
• French Nov CPI (MoM) 0.2%, 0.2% forecast, 0.2% previous
• French CPI (YoY) 0.2%,0.2% forecast, 0.2% previous
•Italian Nov CPI Ex Tobacco (MoM) -0.3%,-0.4% previous
•Italian Nov HICP (YoY) -0.3%, -0.3% forecast, -0.6% previous
•Italian Nov CPI (MoM) -0.1%, -0.1% forecast, 0.2% previous
•Italian CPI (YoY) -0.2%,-0.2% forecast, -0.3% previous
•Italian Nov HICP (MoM) 0.0%,0.0% forecast, 0.6% previous
•Italian Oct Trade Balance 7.565B, 5.849B previous
•Italian Oct Trade Balance EU 0.40B, 0.58B previous
Looking Ahead - Economic Data (GMT)
•13:15 Canada Nov Housing Starts 215.0K forecast, 214.9K previous
•13:30 Canada Oct Manufacturing Sales (MoM) 0.6% forecast, 1.5% previous
•13:30 US Dec NY Empire State Manufacturing Index 6.90 forecast, 6.30 previous
•13:30 US Nov Export Price Index (MoM) 0.3% forecast,0.2% previous
•13:30 US Nov Import Price Index (MoM) 0.3% forecast, -0.1% previous
•13:55 US Redbook (MoM) -2.4% previous
•13:55 US Redbook (YoY) 2.1% previous
•14:15 US Nov Capacity Utilization Rate 72.9% forecast, 72.8% previous
•14:15 US Nov Industrial Production (YoY) -5.34% previous
•14:15 US Nov Industrial Production (MoM) 0.3% forecast, 1.1% previous
•14:15 US Manufacturing Production (MoM) 0.3% forecast, 1.0% previous
•14:30 New Zealand GlobalDairyTrade Price Index 4.3% previous
•15:00 US IBD/TIPP Economic Optimism 50.0 previous
•15:15 Russia Industrial Production (YoY) -4.8%,-5.9% previous
Looking Ahead - Economic events and other releases (GMT)
•19:30 Canada BoC Gov Council Member Macklem Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Tuesday as investors looked past new restrictions to fight COVID-19 and focused on the likelihood of more U.S. stimulus that would weigh on the dollar. The single currency has rocketed 4% since early November to its highest level since April 2018, in part because of broad-based selling of the U.S. dollar and as investors bet a vast European recovery fund package will lift the regions’ economies. The euro was up 0.14 percent at $1.2160. Immediate resistance can be seen at 1.2153 (23.6% fib), an upside break can trigger rise towards 1.2200 (Psychological level).On the downside, immediate support is seen at 1.2131(Daily low), a break below could take the pair towards 1.2102 (38.2% fib).
GBP/USD: Sterling gained against the dollar on Tuesday as market participants grew more optimistic about the chances of a Brexit deal, but implied volatility gauges pointed to further price swings ahead as the Dec. 31 Brexit deadline approaches. Sterling dropped to as low as $1.3135 last Friday and implied volatility surged to its highest since March, when British Prime Minister Boris Johnson said a no-deal was very very likely.It then rebounded to as high as $1.3444 on Monday .At 12:40 GMT on Tuesday, the pound was at $1.3381 versus a slightly stronger dollar. Immediate resistance can be seen at 1.3396(23.6%fib), an upside break can trigger rise towards 1.3445 (Dec 14th high).On the downside, immediate support is seen at 1.3328 (38.2%fib ), a break below could take the pair towards 1.3272 (50%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as progress toward a massive government spending bill and COVID-19 relief measures kept spirits high, while investors awaited new economic cues from the Federal Reserve’s final meeting of the year.Talks in Congress were underway late on Monday to agree on a bill to avert a government shutdown, with Democrat and Republican leaders appearing more upbeat about including a fresh round of coronavirus aid, the first new relief measure since April. Markets have moved in tandem with news on a relief bill, which is expected to further offset the economic impact of the virus outbreak and keep liquidity high. Immediate resistance can be seen at 0.8875 (50%fib), an upside break can trigger rise towards 0.8900(61.8%fib).On the downside, immediate support is seen at 0.8855 (11 DMA), a break below could take the pair towards 0.8824(23.6%fib).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as concerns about increasing COVID-19 deaths, infections and lockdowns increased demand form yen. COVID-19 deaths in the U.S. are occurring at a record rate 2,462 per day on a seven-day average. Meanwhile, new waves of the pandemic forced Germany, the Netherlands and London back to stricter lockdowns while cases in Japan and South Korea also surged. Strong resistance can be seen at 104.21(21EMA), an upside break can trigger rise towards 104.34 (38.2%fib).On the downside, immediate support is seen at 103.88 (23.6%fib), a break below could take the pair towards 103.47 (14th Dec).
Equities Recap
European shares were trading flat on Tuesday as rising COVID-19 cases forced tighter curbs across the continent, denting optimism from vaccine roll-outs and hopes of an eventual Brexit trade deal.
At (GMT 12:40),UK's benchmark FTSE 100 was last trading down at 0.68 percent, Germany's Dax was up by 0.75 percent, France’s CAC finished was up by 0.11 percent.
Commodities Recap
Gold rose by more than 1% on Tuesday, driven by market expectations of additional economic support as COVID-19 cases climbed ahead of the U.S. Federal Reserve's policy meeting.
Spot gold was up 1.1% at $1,846.61 per ounce by 1025 GMT, while U.S. gold futures rose 1% to $1,850.10.
Oil slipped towards $50 a barrel on Tuesday as tighter lockdowns in Europe and forecasts of a slower demand recovery outweighed relief from the roll-out of coronavirus vaccines.
Brent crude fell 2 cents to $50.27 a barrel at 0910 GMT. U.S. West Texas Intermediate (WTI) crude was up 2 cents at $47.01.
