Posted at 13 December 2021 / Categories Market Roundups
Market Roundup
•German Nov WPI (YoY) 16.6%, 15.2% previous
•German Nov WPI (MoM) 1.3%,1.6% previous
•Italian Quarterly Unemployment Rate 9.2%,9.3% previous
Looking Ahead - Economic Data (GMT)
•14:00 French 12-Month BTF Auction-0.792% previous
•14:00 French 3-Month BTF Auction-0.893% previous
•14:00 French 6-Month BTF Auction -0.824% previous
•16:30 US 3-Month Bill Auction 0.055% previous
•16:30 US 6-Month Bill Auction 0.105% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
EUR/USD: The euro edged lower on Monday at the start of a week in which the European Central Bank, the U.S. Federal Reserve and the Bank of England are all due to meet and possibly signal a tightening of policy in the face of strong inflation. But growing Omicron infections in Europe and the United States complicate matters and are likely to trigger some caution as policymakers either side of the Atlantic prepare to signal or hint at an end to pandemic-era measures.The euro slipped 0.17% to $1.1292. Immediate resistance can be seen at 1.1370(38.2% fib), an upside break can trigger rise towards 1.1390 (30 DMA).On the downside, immediate support is seen at 1.1258 (23.6%fib), a break below could take the pair towards 1.1190(Nov 11th low).
GBP/USD: Sterling traded flat on Monday after British Prime Minister Boris Johnson warned of a tidal wave of the Omicron coronavirus variant and investors took the view the Bank of England would keep interest rates on hold given the uncertainty. BoE policy makers meet on Thursday to decide whether to tighten monetary policy to keep inflation in check but the resurgent COVID-19 pandemic has prompted traders to price in a status quo rather than a rise in interest rates. Johnson faces a rebellion in his Conservative Party over measures to curb the spread of the Omicron variant and an outcry over alleged parties at his Downing Street office during last year's lockdowns. Immediate resistance can be seen at 1.3245 (38.2%fib), an upside break can trigger rise towards 1.3274 (14DMA).On the downside, immediate support is seen at 1.3185(38.2%fib), a break below could take the pair towards 1.3110 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Monday at the start of a busy week of central bank meetings, including at the Federal Reserve, which are expected to drive currency markets and help the dollar, although concerns about the coronavirus weigh heavily on traders' minds. Markets have swung widely since the new strain emerged due to worries it could have a major impact, initially driving flows to safe-haven assets. Reports that it may not be as bad as feared caused these flows to reverse last week. Immediate resistance can be seen at 0.9247(14DMA), an upside break can trigger rise towards 0.9275 (23.6%fib).On the downside, immediate support is seen at 0.9228 (38.2%fib), a break below could take the pair towards 0.9193(50%fib).
USD/JPY: The dollar gained against the Japanese yen on Monday as greenback was supported by upbeat mood took hold of world markets ahead of a host of central bank meetings this week that includes the U.S. Federal Reserve. The U.S. central bank is widely expected to signal a faster tapering of asset buying, and thus an earlier start to rate hikes. It will also update the dot plots for rates over the next couple of years.The market is already well ahead, with a 25 basis point rise fully priced in by June. 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 edged higher on Monday after China's top decision makers signaled policies may become more supportive of growth next year.
At (GMT 11:24),UK's benchmark FTSE 100 was last trading up at 0.23%percent, Germany's Dax was up by 1.03 % percent, France’s CAC finished was up by 0.00% percent.
Commodities Recap
Gold steadied in a narrow range on Monday as the market focus pivoted to this week's Federal Reserve meeting to learn how quickly it plans to unwind economic support measures introduced in response to the coronavirus pandemic.
Spot gold was last up 0.1% at $1,783.91 per ounce as of 0947 GMT. U.S. gold futures were flat at $1,784.70.
Oil prices extended their rally on Monday as investor appetite improved amid growing relief the Omicron coronavirus variant may not cause severe illness and will likely have a limited impact on global fuel demand.
Brent futures climbed 94 cents, or 1.3%, to $76.09 a barrel by 0500 GMT, after rising 1% on Friday.