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America’s Roundup: Dollar loses ground after U.S. inflation data, Wall Street rises, Gold gains, Oil prices post biggest weekly increase since August -December 11th,2021

Posted at 11 December 2021 / Categories Market Roundups


Market Roundup

•Russia Oct Trade Balance 19.78B,20.00B previous

•US NIESR Monthly GDP Tracker 0.9%,1.0% previous

•Canada Capacity Utilization Rate (Q3) 81.4%, 83.0% forecast,82.0% previous

•US Nov Core CPI (YoY) 4.9%,4.9%forecast, 4.6% previous

•US Nov CPI (MoM) 0.8%,0.7% forecast, 0.9% previous

•US Nov Core CPI (MoM) 0.5%,0.5% forecast, 0.6% previous

•US Nov Core CPI Index 283.20,281.70 previous

•US Nov Real Earnings (MoM) -0.2%, -0.9% previous

•US Dec Michigan Inflation Expectations 4.9%,4.9% forecast, 4.9% previous

•US Dec Michigan Consumer Sentiment 67.8, 67.1 forecast, 67.4 previous

•US Dec Michigan Current Conditions 74.6, 71.0 forecast, 73.6 previous

•US Nov Cleveland CPI (MoM) 0.5%,0.6% previous

•U.S. Baker Hughes Oil Rig Count  471,467 previous

•U.S. Baker Hughes Total Rig Count 576, 569 previous

Looking Ahead - Economic Data (GMT)

•No significant events

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro strengthened on Friday as dollar weakened after data showed consumer prices rose as expected in November, easing concerns the U.S. Federal Reserve would aggressively tighten monetary policy to combat inflation. The U.S. consumer price index increased 0.8% last month after surging 0.9% in October, while it accelerated 6.8% on an annualized basis to mark the biggest year-on-year rise since June 1982. The dollar index fell 0.157%, with the euro up 0.19% to $1.1314. Immediate resistance can be seen at 1.1394(38.2% fib), an upside break can trigger rise towards 1.1429 (61.8%fib).On the downside, immediate support is seen at 1.1272 (38.2%fib), a break below could take the pair towards 1.1178(23.6% fib).

GBP/USD: The British pound rebounded on Friday, after the greenback pared some gains after U.S. inflation data.The consumer price index rose 0.8% last month after surging 0.9% in October. Economists polled  had forecast the CPI climbing 0.7%. Meanwhile, investors weighed UK's pandemic curbs and weak economic data, which dampened expectations that the Bank of England would raise interest rates soon. The pound was up 0.1% at $1.323 against the dollar , not far from Wednesday's 2021 low of $1.3263.Immediate resistance can be seen at 1.3283 (38.2%fib), an upside break can trigger rise towards 1.3336(21DMA).On the downside, immediate support is seen at 1.3211(38.2%fib), a break below could take the pair towards 1.3120 (23.6%fib).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Friday, adding to this week's gain, as oil prices rose and investors weighed the potential impact of accelerating U.S. inflation on the Federal Reserve policy outlook . The loonie was trading 0.1% higher at 1.2696 to the greenback, or 78.76 U.S. cents, after trading in a range of 1.2680 to 1.2724.The currency was on track to advance 1.1% for the week, its first weekly gain in eight weeks, as easing concerns over the Omicron variant's impact on economic growth boosted global stocks and the price of oil, one of Canada's major exports. Immediate resistance can be seen at 1.2749(23.6%fib), an upside break can trigger rise towards 1.2793 (Nov 29th high ).On the downside, immediate support is seen at 1.2684 (38.2%fib), a break below could take the pair towards 1.2635 (50%fib).

USD/JPY: The dollar dipped against the Japanese yen on Friday after U.S. consumer prices increased roughly in line with expectations in November. Labor Department data showed an increasing consumer price index (CPI) as cost of goods and services rose broadly amid supply constraints for the largest annual gain since 1982. The CPI rose 0.8% last month after surging 0.9% in October while in the 12 months through November, it rose 6.8%, following a 6.2% advance in October. The Japanese yen strengthened 0.02% versus the greenback at 113.43 per dollar. Strong resistance can be seen at 113.94 (23.6%fib), an upside break can trigger rise towards 114.52 (Nov 19th high).On the downside, immediate support is seen at 113.32 (38.2%fib), a break below could take the pair towards 112.83 (50%fib).

Equities Recap

European stocks fell on Friday on nervousness around the Omicron COVID-19 variant, while U.S. inflation reading coming in broadly in line with expectations did little to allay uncertainty around U.S. monetary policy.

UK's benchmark FTSE 100 closed down by  0.40 percent, Germany's Dax ended down by 0.10 percent, France’s CAC finished the day down by 0.24 percent.

U.S. stock indexes rose on Friday after data showed consumer prices rose largely in line with estimates last month, taking some pressure off investors concerned about the Federal Reserve's aggressive tightening of its monetary policy.

Dow Jones closed up by 0.60%percent, S&P 500 closed up by 0.95% percent, Nasdaq settled up by  0.73 % percent.

Treasuries Recap

U.S. Treasury yields slipped on Friday after an inflation reading was largely in-line with expectations, easing concerns the Federal Reserve may need to be more aggressive in its efforts to combat rising prices.

The yield on 10-year Treasury notes was down 0.7 basis points to 1.480%.

Commodities Recap

Oil prices rose in their biggest weekly gain since late August, with market sentiment buoyed by easing concerns over the Omicron variant's impact on global economic growth and fuel demand.

Brent crude rose 73 cents to settle at $75.15 a barrel. U.S. crude settled up 73 cents at $71.67 a barrel.

Gold gained on Friday as its safe-haven appeal was boosted by elevated U.S. consumer prices, which also cooled some bets for aggressive interest rate hikes since the jump in inflation was not as big as expected.

Spot gold rose 0.5% to $1,782.44 per ounce at 01:38 p.m. ET (1838 GMT), having dropped for the past two sessions. U.S. gold futures settled up 0.5% at $1,784.80.


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