Posted at 14 December 2021 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction-0.644%,-0.792% previous
•French 3-Month BTF Auction-0.764%,-0.893% previous
•French 6-Month BTF Auction-0.675%, -0.824% previous
•US 3-Month Bill Auction 0.055%,0.055% previous
•US 6-Month Bill Auction 0.130%,0.105% previous
Looking Ahead - Economic Data (GMT)
• 10:00 Japan Oct Capacity Utilization (MoM) -7.3% previous
• 10:00 Japan Oct Industrial Production (MoM) 1.1% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro dipped on Monday edged lower 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 0.16% to $1.1277. Immediate resistance can be seen at 1.1305(5DMA), an upside break can trigger rise towards 1.1315 (38.2%fib).On the downside, immediate support is seen at 1.127 1 (38.2%fib), a break below could take the pair towards 1.1203(Lower BB).
GBP/USD: Sterling traded lower on Monday as Britain braced for a "tidal wave" of the Omicron coronavirus variant and investors took the view the Bank of England would keep interest rates on hold to assess its economic impact before tightening monetary policy.British Prime Minister Boris Johnson warned of an incoming surge in infections and said at least one patient had died in the United Kingdom after contracting the Omicron variant. The pound fell 0.30% to $1.3231 and was down 0.07%at 85.34 pence against the euro. Immediate resistance can be seen at 1.3227 (5DMA), an upside break can trigger rise towards 1.3251 (38.2%fib).On the downside, immediate support is seen at 1.3188(38.2%fib), a break below could take the pair towards 1.3143(Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as the greenback broadly climbed and ahead of the expected renewal of the Bank of Canada's monetary policy framework. The currency has weakened each day since last Wednesday. The price of oil, one of Canada's major exports, was pressured by new concerns about the Omicron coronavirus variant and doubts around the effectiveness of vaccines against it. U.S. crude futures were down 0.3% at $71.46 a barrel. The loonie was trading 0.4% lower at 1.2775 to the greenback, after trading in a range of 1.2706 to 1.2783. Immediate resistance can be seen at 1.2830 (23.6%fib), an upside break can trigger rise towards 1.2857 (Dec 3rd high).On the downside, immediate support is seen at 1.2765 (38.2%fib), a break below could take the pair towards 1.2743 (5 DMA).
USD/JPY: The dollar gained against the Japanese yen on Monday ahead of a series of central bank meetings this week including the U.S. Federal Reserve, with investors eyeing how quickly it will unwind bond-buying and looking for clues on when it will start to raise rates in 2022. Aside from the Fed, the European Central Bank, Bank of Japan, Bank of England, Swiss National Bank, and Norges Bank, among others, all have policy decisions in the next few days. The dollar index , which measures the greenback against six major peers, was up 0.2% at 96.297. 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 shares ended lower on Monday, led by travel and energy stocks over rising Omicron variant risks, while a wave of central bank policy decisions this week kept investor sentiment subdued.
UK's benchmark FTSE 100 closed down by 0.83 percent, Germany's Dax ended down by 0.01percent, France’s CAC finished the day down by 0.70 percent.
U.S. stocks fell on Monday on worries about the Omicron coronavirus variant ahead of a Federal Reserve meeting later this week, while investors watched Apple close in on $3 trillion in market capitalization.
Dow Jones closed down 0.89%percent, S&P 500 closed down by 0.91% percent, Nasdaq settled down by 1.03 % percent.
Treasuries Recap
The benchmark U.S. 10-year Treasury yield fell on Monday and the yield curve flattened as traders jockeyed for position ahead of an expected hawkish tone out of the Federal Reserve later this week.
The yield on 10-year Treasury notes was down 6.5 basis points to 1.424% and the 30-year Treasury bond yield was down 6.7 basis points to 1.817%.
Commodities Recap
Gold prices were little changed on Tuesday, as cautious investors focussed on key central bank meetings this week, with the U.S. Federal Reserve likely to accelerate its plans for the roll-back of its pandemic-era economic support measures.
Spot gold was last down 0.1% to $1,785.65 per ounce by 0030 GMT. U.S. gold futures also fell 0.1% to $1,786.00
Oil prices edged higher on Monday but price gains were capped due to investor worries about oil demand after renewed restrictions were imposed in Europe and Asia amid a rise in coronavirus cases.
Brent crude oil futures edged higher by 1 cent to $74.40 a barrel by 0113 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 1 cent to $71.30.