Market Roundup
•Spanish PPI (YoY) -4.1%,-3.3% previous
•Swiss Nov ZEW Expectations 30.0, 2.3 previous
•France Jobseekers Total 3,549.7K, 3,606.3K previous
Looking Ahead Economic Data
•Brazil Oct Current Account (USD) 1.30B forecast, 2.32B previous
•Brazil Oct Foreign direct investment (USD) 1.05B forecast, 1.60B B previous
•13:30 US Core PCE Price Index (MoM) 0.2% previous
•13:30 US Real Consumer Spending (Q3) 40.7% previous
•13:30 US Core PCE Prices (Q3) 3.50% forecast,3.50% previous
•13:30 US Corporate Profits (QoQ) (Q3) -10.7% previous
•13:30 US Wholesale Inventories (MoM) 0.4% previous
•13:30 US Continuing Jobless Claims 6,020K forecast, 6,372K previous
•13:30 US Initial Jobless Claims 730K forecast, 742K previous
•13:30 US Jobless Claims 4-Week Avg 742.00K previous
•13:30 US Employment Benefits (QoQ) 0.60% previous
•13:30 US Employment Cost Index (QoQ)
•13:30 US Employment Wages (QoQ) 0.40% previous
•13:30 US Oct Core Durable Goods Orders (MoM) 0.5% forecast, 0.8% previous
•13:30 US Goods Orders (MoM) 1.0 forecast, 1.9% previous
•13:30 US Oct Durables Excluding Defense (MoM) -79.36B previous
•13:30 US Oct Retail Inventories Ex Auto 1.1% previous
•13:30 US GDP (QoQ) (Q3) 33.2% forecast, 33.1% previous
•13:30 US GDP Price Index (QoQ) (Q3) 3.7% forecast, 3.7% previous
•13:30 US GDP Sales (Q3) 25.5% previous
•13:30 US Seevol Cushing Storage Report 2.154M previous
•13:30 US Nov Michigan Consumer Sentiment 77.0forecast, 81.8 previous
•15:00 US Nov Michigan Current Conditions 85.8 forecast, 85.9 previous
•15:00 US Nov Michigan Consumer Expectations 71.3 forecast, 79.2 previous
•15:00 US Nov Michigan 5-Year Inflation Expectations 2.60% forecast, 2.40% previous
•15:00 US Nov Michigan Inflation Expectations 2.8% forecast, 2.6% previous
•15:00 US Oct Personal Income (MoM) 0.1% forecast , 0.9% previous
•15:00 US Oct Core PCE Price Index (YoY) 1.4% forecast , 1.5% previous
•15:00 US Oct New Home Sales 970K forecast , 959K previous
•15:00 US New Home Sales (MoM) 1.5% forecast , -3.5% previous
•15:00 US Oct Real Personal Consumption (MoM) 1.2% previous
•15:00 US Oct Personal Spending (MoM) 0.4% forecast , 1.4% previous
•15:00 US PCE price index (MoM) 0.2% previous
•15:00 US PCE Price index (YoY) 1.4 previous
•15:00 US PCE Core PCE Price Index (MoM) 0.1% forecast ,0.2 previous
•15:30 US Crude Oil Inventories 0.127M forecast, 0.768M previous
•17:00 US Oct Dallas Fed PCE 0.90% previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday as progress in developing a novel coronavirus vaccine and expectations for a fiscal boost from a new U.S. government triggered appetite for riskier assets. Risk appetite also improved after U.S. President Donald Trump’s administration began cooperating with the President-elect Joe Biden’s transition team, and after reports that Yellen, an advocate of more fiscal spending, will take the top job at the Treasury. Later today, investors will be focused on the minutes from the Federal Reserve’s latest meeting. Immediate resistance can be seen at 1.1910(23.6%fib), an upside break can trigger rise towards 1.1932(Daily high).On the downside, immediate support is seen at 1.1847 (50%fib), a break below could take the pair towards 1.1819 (61.8% fib).
GBP/USD: Sterling declined against dollar on Wednesday as traders waited to see whether Britain will be able to clinch a post-Brexit trade deal with the European Union during this week’s negotiations. Most in the market expect a post-Brexit trade deal to be agreed, even if it is a bare bones one, with some talks continuing into the next year. The pound was last trading down 0.1% at $1.3345 and also down by 0.3% against a stronger euro at 89.24 pence.Immediate resistance can be seen at 1.3398 (23.6%fib), an upside break can trigger rise towards 1.3487 (Aug 24th high).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3264 (23rd Nov low).
USD/CHF: The dollar gained against the Swiss franc on Wednesday as political uncertainty subsided after U.S. President-elect Joe Biden got the formal go-ahead to begin his transition to the White House.Short of spelling out his defeat after repeated false claims that he had won the Nov. 3 race, President Donald Trump said Monday he told the federal agency that must sign off on the presidential transition to begin the process. At 13:00 GMT, the dollar was 0.14 percent higher versus the Swiss franc at 0.9134 . Immediate resistance can be seen at 0.9134(38.2%fib), an upside break can trigger rise towards 0.9188 (23.6% fib).On the downside, immediate support is seen at 0.9086 (50% fib), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as investors relieved at the prospect of a smooth handover of power after the U.S. presidential election and confident a COVID-19 vaccine would soon be ready. President-elect Joe Biden on Tuesday introduced his foreign policy and national security team after President Donald Trump cleared the way to prepare for the start of his administration.Reports that Biden planned to nominate former Federal Reserve Chair Janet Yellen as Treasury Secretary, potentially easing the passage of a fiscal stimulus package to counter COVID-19 damage, also cheered markets. Strong resistance can be seen at 104.64 (50% fib), an upside break can trigger rise towards 104.97(61.8% fib).On the downside, immediate support is seen at 104.29 (38.2%fib), a break below could take the pair towards 104.06 (5DMA).
Equities Recap
European shares eased slightly, while staying near nine-month highs on Wednesday as a relaxation of coronavirus restrictions in the region and growing hopes that a vaccine would soon be ready kept sentiment afloat.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.58 percent, Germany's Dax was down by 0.08 percent, France’s CAC was last up by 0.06 percent.
Commodities Recap
Oil rose for a fourth straight session on Wednesday as the market shrugged off an industry report showing U.S. crude stockpiles rose more than expected, extending a rally driven by hopes that a COVID-19 vaccine will boost fuel demand.
Brent crude was up 30 cents, or 0.6%, at $48.16 a barrel by 1211 GMT, having risen almost 4% in the previous session.
West Texas Intermediate crude gained 24 cents, or 0.5%, to $45.15, after rising more than 4% on Tuesday.
Gold prices edged up on Wednesday helped by a weaker dollar, though a robust appetite for riskier assets kept the safe-haven metal near a more than four-month low hit in the previous session.
Spot gold rose 0.1% to $1,809.41 per ounce by 0124 GMT. Prices hit $1,800.01 on Tuesday, its lowest level since July 17.
