Posted at 02 January 2024 / Categories Market Roundups
Market Roundup
•French 3-Month BTF Auction 3.757%,3.729% previous
•French 12-Month BTF Auction 3.663% ,3.333% previous
•French 6-Month BTF Auction 3.215%,3.690% previous
•Canada Dec Manufacturing PMI 45.4,47.7 previous
•US Dec Manufacturing PMI 47.9,48.2 forecast,49.4 previous
•US Nov Construction Spending (MoM) 0.4%,0.5% forecast, 0.6% previous
•US 3-Month Bill Auction 5.245%, 5.260% previous
•US 6-Month Bill Auction 5.045%,5.080% previous
•US Atlanta Fed GDPNow (Q4) 2.0%, 2.3% forecast,2.3% previous
Looking Ahead Economic Data (GMT)
•02:00 New Zealand Nov M3 Money Supply 405.9B previous
Looking Ahead Events And Other Releases(GMT)
•No Data Ahead
Currency Summaries
EUR/USD: The euro declined on Tuesday as traders digested data showing euro zone factory activity contracted in December for an 18th straight month. Euro zone factories ended 2023 on the back foot, with activity contracting in December for an 18th straight month, according to a survey which gave scant signs of any imminent strong bounce back in an economy likely in recession.HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, did nudge up to 44.4 in December from November's 44.2 but remained firmly below the 50 mark separating growth in activity from contraction.A preliminary estimate was for no change from November.. Immediate resistance can be seen at 1.1000(Psychological level), an upside break can trigger rise towards 1.1047 (23.6%fib).On the downside, immediate support is seen at 1.0947 (38.2%fib), a break below could take the pair towards 1.0869 (50%fib).
GBP/USD: The British pound weakened on Tuesday as stronger dollar and latest signs of slowing inflation in Britain weighed on pound. The pound gained about 6% in 2023, owing to better-than-expected economic data and anticipation that the Bank of England would hold interest rates higher for longer, however a faltering economy and election uncertainties made a repeat performance unlikely. Investors were also digesting factory activity data from around the world on Tuesday.Britain's manufacturing sector suffered a setback in its attempts to return to growth as output and employment fell more sharply in December than the previous month, according to the final reading of the S&P Global/CIPS manufacturing Purchasing Managers' Index (PMI). The pound was last down 0.7% at $1.2637. Immediate resistance can be seen at 1.2722(23.6%fib), an upside break can trigger rise towards 1.2752(Daily high).On the downside, immediate support is seen at 1.2611 (38.2%fib), a break below could take the pair towards 1.2536(50%fib).
USD/CAD: The Canadian dollar posted its biggest decline in nearly three months against the U.S. dollar on Tuesday as oil prices fell and domestic data showed a deepening downturn in the manufacturing sector. Canada's factory sector contracted in December at its steepest pace since the early months of the COVID-19 pandemic. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) dropped to a seasonally adjusted 45.4 from 47.7 in November, its lowest level since May 2020.The price of oil, one of Canada's major exports, fell on interest rate jitters and as concerns eased that tensions in the Red Sea could disrupt supplies. U.S. crude oil futures settled 1.8% lower at $70.38 a barrel. The loonie was trading 0.7% lower at 1.3325 to the greenback. Immediate resistance can be seen at 1.3347 (50% fib), an upside break can trigger rise towards 1.3415 (61.8% fib).On the downside, immediate support is seen at 1.3271(38.2% fib), a break below could take the pair towards 1.3180 (23.6% fib).
USD/JPY: The dollar strengthened against the yen on Tuesday as investors keenly awaited a series of economic data releases scheduled and Fed minutes for the week, which could provide further insights into the timing of potential interest rate cuts. Market focus this week is on the minutes from the last Fed meeting, due out on Thursday. Data on U.S. job openings and December non-farm payrolls due on Friday will also be keenly watched. Markets are now pricing in an 86% chance of a rate cut from the Fed in March, according to CME FedWatch tool. The dollar index , which measures the U.S. currency against six counterparts, rose 0.799%, on track for its biggest daily percentage gain since October. Strong resistance can be seen at 142.42(38.2%fib),an upside break can trigger rise towards 143.52(50%fib).On the downside, immediate support is seen 140.80(23.6%fib)a break below could take the pair towards 140.00(Psychological level).
Equities Recap
Europe's benchmark stock index capped off the first trading day of the New Year lower with technology stocks amongst top decliners on Tuesday, as traders bid adieu to an upbeat 2023 that was fuelled by expectations of nearing interest rate cuts.
UK's benchmark FTSE 100 closed down by 0.15 percent, Germany's Dax ended up by 0.11 percent, France’s CAC finished the day down by 0.16 percent.
The S&P 500 and Nasdaq Composite closed the first trading session of 2024 lower, weighed by a fall in Apple shares after a broker downgrade and declines among other big-tech names triggered by a move higher by Treasury yields.
Dow Jones closed up by 0.07 %percent, S&P 500 closed down by 0.57% percent, Nasdaq settled down by 1.63 % percent.
Commodities Recap
A spike in the value of the US dollar put pressure on gold as it entered 2024, but it managed to hold steady due to projections that the Federal Reserve will cut rates this year and growing worries about assaults on ships in the Red Sea.
Spot gold steadied at $2,061.59 per ounce on Tuesday by 2:30 p.m. ET (1930 GMT) after rising as much as 0.8% earlier in the session. U.S. gold futures slipped 0.1% to $2,070.30. .
Oil prices fell in the first trading session of 2024 as expectation for interest rate reduction faded and fears about supply disruptions in the Red Sea eased.
Brent crude settled at $75.89, down by $1.15 or 1.5%. U.S. West Texas Intermediate crude settled at $70.38 a barrel, down by $1.27 or 1.8%.