Posted at 08 December 2023 / Categories Market Roundups
Market Roundup
•US Nov Challenger Job Cuts 45.510K , 36.836K previous
•US Challenger Job Cuts (YoY) -40.8%,8.8% previous
•Canada Oct Building Permits (MoM) 2.3%,2.9% forecast,-6.5% previous
•US Initial Jobless Claims222K forecast,218K previous
•US Continuing Jobless Claims 1,861K,1,910K forecast,1,927K previous
•US Jobless Claims 4-Week Avg. 220.75K, 220K, 220.00K previous
•US Oct Wholesale Trade Sales (MoM) -1.3%, 2.2% previous
•US Oct Wholesale Inventories (MoM) -0.4%, -0.2% forecast,0.2% previous
•US Natural Gas Storage-117B, -105B forecast,10B previous
•US Atlanta Fed GDPNow (Q4) 1.2%, 1.3% forecast,1.3% previous
Looking Ahead Economic Data (GMT)
•05:00 Japan Nov Economy Watchers Current Index 49.0 forecast,49.5. previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro hovered close to a three-week low as traders increased their expectations that the European Central Bank (ECB) will start cutting rates from March next year. Traders are betting an approximately 85% likelihood that the European Central Bank (ECB) will cut interest rates during the March meeting, with nearly 150 basis points. The European Central Bank (ECB) is scheduled to set interest rates next Thursday, and it's highly probable that they will maintain the existing record high of 4%.The euro was up 0.03% at $1.0790, but remained close to lows of $1.07595 it touched on Wednesday. Immediate resistance can be seen at 1.0795(5DMA), an upside break can trigger rise towards 1.0833( (23.6%fib).On the downside, immediate support is seen at 1.0764(38.2%fib), a break below could take the pair towards 1.0700(50%fib).
GBP/USD: The pound steadied against dollar on Thursday caution around Friday's U.S. non-farm payrolls has kept trading volatility subdued. The U.S. non-farm payrolls data, due on Friday, is expected to show 180,000 job additions in November, according to economists polled .The Fed is widely expected to maintain rates at the current level when it meets next week. Futures markets are pricing in a 60% chance of a Fed rate cut by March, up from 50% a week ago, according to the CME's FedWatch tool. Immediate resistance can be seen at 1.2591(5DMA), an upside break can trigger rise towards 1.2627 (23.6%fib).On the downside, immediate support is seen at 1.2549 (38.2%fib), a break below could take the pair towards 1.2485(50%fib).
USD/CAD: The Canadian dollar was little changed against the U.S. dollar but weakened against most other G10 currencies as investors were eagerly anticipating Friday's U.S. employment report, seeking insights into the interest rate prospects. Traders are assessing whether the U.S. economy continues to outpace the Canadian economy, potentially leading to pressure on the Bank of Canada to reduce interest rates before the Federal Reserve takes action. Canada's economy surprisingly experienced a 1.1% annualized contraction in the third quarter, narrowly avoiding a recession. However, many economists anticipate that forthcoming mortgage renewals at elevated rates could further impede growth next year. The loonie was trading nearly unchanged at 1.3590 to the greenback. Immediate resistance can be seen at 1.3613 (38.2%fib), an upside break can trigger rise towards 1.3670(23.6% fib).On the downside, immediate support is seen at 1.3583(5DMA), a break below could take the pair towards 1.3572 (50%fib).
USD/JPY: The dollar declined sharply against the yen on Thursday as investor expectations grew as there were mounting expectations that the Bank of Japan might indicate a departure from its extremely accommodative monetary policy in the upcoming week. The yen surged, largely triggered by comments made by Bank of Japan Governor Kazuo Ueda. During discussions in the Japanese parliament, Ueda mentioned that the central bank has various options regarding which interest rates to focus on once it withdraws short-term borrowing costs from negative territory. The yen rose 1.5% against the dollar , its biggest one-day jump since January. Strong resistance can be seen at 144.41(38.2%fib),an upside break can trigger rise towards 145.21(50%fib).On the downside, immediate support is seen 143.30(23.6%fib)a break below could take the pair towards 141.59(Daily low).
Equities Recap
European shares halted their ascent on Thursday following recent robust gains. Concerns amplified in Germany as data indicated that the industrial sector might persist in dragging down the largest economy in the eurozone.
UK's benchmark FTSE 100 closed down by 0.02 percent, Germany's Dax ended down by 0.16 percent, France’s CAC finished the day down by 0.10 percent.
The Nasdaq ended sharply higher on Thursday, propelled by Alphabet and Advanced Micro Devices, which ignited a rally among mega-cap stocks. This surge was fueled by renewed optimism surrounding advancements in artificial intelligence..
Dow Jones closed up by 0.17 percent, S&P 500 ended up by 0.80 percent, Nasdaq finished the day up by 1.37 percent.
Commodities Recap
Gold firmed on Thursday as dollar dipped ahead of the release of U.S. non-farm payrolls data. Traders anticipated signs of a weaker labor market that could potentially increase the likelihood of a Federal Reserve rate cut as early as March.
Spot gold edged up 0.3% to $2,029.92 per ounce by 2:25 p.m. ET (1925 GMT). U.S. gold futures settled 0.1% lower at $2,046.40.
Oil prices declined to their lowest in six months amid concerns over sluggish energy demand in both the United States and China. Simultaneously, U.S. output remained close to record highs, prompting investor apprehension.
Brent crude futures dropped 25 cents to $74.05 a barrel. U.S. West Texas Intermediate crude futures fell 4 cents to $69.34. Both benchmarks posted their lowest prices since late June.