Posted at 21 December 2023 / Categories Market Roundups
Market Roundup
•EU Dec Consumer Confidence -15.1, -16.5 forecast,-16.9 previous
•US Nov Existing Home Sales (MoM) 0.8%,-4.1% previous
•US Nov Existing Home Sales 3.82M,3.78M forecast,3.79M previous
•US CB Dec Consumer Confidence 110.7,103.8 forecast,102.0 previous
•US Crude Oil Inventories 2.909M,-4.259M previous
• US Gasoline Inventories 2.710M, 0.408M previous
• US Cushing Crude Oil Inventories 1.686M, 1.228M previous
Looking Ahead Economic Data(GMT)
•02:00 New Zealand Nov M3 Money Supply 405.9B previous
•02:00 New Zealand Credit Card Spending (YoY) -2.9% previous
Looking Ahead Events And Other Release (GMT)
• No Events Ahead
EUR/USD: The euro declined on Wednesday as dollar strengthened ahead of barrage of economic data anticipated later this week that might provide new insights into the Federal Reserve's monetary policy. investors were waiting for slew of U.S. economic data, including the November core personal consumption expenditure (PCE) index report, the Federal Reserve's preferred measure of underlying inflation, which is due on Friday. The dollar was last up 0.28% at 102.42 , on pace to break a two-day losing streak. The index had dropped about 1.5% for the week ended Tuesday. The euro eased 0.4% to $1.0940. Immediate resistance can be seen at 1.0983(Daily high), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0893 (5DMA), a break below could take the pair towards 1.0845(50%fib).
GBP/USD: Sterling plummeted against the dollar on Wednesday after data showed that British inflation decreased in November and fell far short of forecasts, prompting investors to place bets on when the Bank of England may begin slashing interest rates. Annual consumer price inflation in the United Kingdom decreased to 3.9% in November from 4.6% in October, the worst rate since September 2021.The data fell short of all projections in a survey of analysts, which predicted a 4.4% rate. Core inflation fell by a surprisingly big amount, from 5.7% to 5.1%. The pound was last down 0.56% at $1.2659, having been down around 0.15%. Immediately before the data .Immediate resistance can be seen at 1.2739 (Daily high), an upside break can trigger rise towards 1.2786(23.6%fib).On the downside, immediate support is seen at 1.2616(5DMA), a break below could take the pair towards 1.2590(50%fib).
USD/CAD: The Canadian dollar held steady at a four-and-a-half-month high versus the US dollar, as long-term borrowing costs fell and investors considered the odds of a domestic housing market revival. Minutes from the Bank of Canada's recent meeting indicated that policymakers extensively deliberated the possibility of sustained high shelter prices, posing challenges in achieving the bank's 2% inflation target. On Tuesday, data revealed that Canada's population grew by 1.1% in the third quarter, marking the highest rate since 1957. Oil, one of Canada's key commodities, finished 0.4% higher at $74.22 per barrel. The loonie was trading nearly unchanged at 1.3330 to the greenback, after touching its strongest intraday level since Aug. 2 at 1.3312. Immediate resistance can be seen at 1.3711 (38.2% fib), an upside break can trigger rise towards 1.3758 (5DMA).On the downside, immediate support is seen at 1.3334(38.2% fib), a break below could take the pair towards 1.3310 (23.6% fib).
USD/JPY: The greenback dipped against yen on Wednesday a day after the Bank of Japan maintained its ultra-loose monetary policy and opted to wait for more evidence to justify a shift. The Bank of Japan kept its ultra-easy policy settings unchanged, opting to wait for additional information on whether wages and prices will increase sufficiently to support a shift away from huge monetary stimulus. The central bank also made no changes to its dovish policy guidance, dashed hopes among some traders that it would adjust the language to indicate the end of zero interest rates in the near term. Strong resistance can be seen at 144.09(50%fib),an upside break can trigger rise towards 145.00(Psychological level).On the downside, immediate support is seen 142.53(23.6%fib)a break below could take the pair towards 141.63(15th Dec low).
Equities Recap
European stocks finished higher on Wednesday, as signs of rapidly cooling inflation in the United Kingdom lifted UK equities, but shares of Belgian pharmaceutical company Argenx fell following a failed drug research.
UK's benchmark FTSE 100 closed up by 1.02 percent, Germany's Dax ended down by 0.07 percent, France’s CAC finished the day up by 0.12 percent.
Stocks in the United States finished down on Wednesday after a sharp mid-afternoon drop stopped Wall Street's remarkable run, which had been fueled by lowering interest rates and the Federal Reserve's dovish tilt.
Dow Jones closed down by 1.27 percent, S&P 500 ended down by 1.47 percent, Nasdaq finished the day down by 1.50 percent.
Commodities Recap
Gold was flat on Wednesday, as traders waited for a barrage of economic data anticipated later this week that might provide new insights into the Federal Reserve's monetary policy course.
Spot gold fell 0.2% to $2,035.59 per ounce, as of 1510 GMT. U.S. gold futures fell 0.2% to $2,048.80.
Oil prices finished marginally higher after a tumultuous trading day on Wednesday, as investors were worried about global trade disruption and Middle East tensions following attacks on ships in the Red Sea by Yemen's Iran-aligned Houthi troops.
Brent crude futures settled up 47 cents, or 0.6%, at $79.70 a barrel, while U.S. West Texas Intermediate crude settled up 28 cents, or 0.4%, to $74.22 a barrel.