Posted at 14 December 2021 / Categories Market Roundups
Market Roundup
•UK Nov Claimant Count Change -49.8K, -14.9K previous
•UK Oct Average Earnings ex Bonus 4.3%,4.0% forecast, 4.9% previous
•UK Oct Unemployment Rate 4.2%,4.2% forecast, 4.3% previous
•UK Oct Average Earnings Index +Bonus 4.9%,4.6% forecast, 5.8% previous
•UK Oct Employment Change 3M/3M (MoM) 149K, 228K forecast, 247K previous
•Swiss Nov PPI (MoM )0.5%,0.6% previous
•Swiss Nov PPI (YoY) 5.8%, 5.1% previous
•Sweden Nov CPI (YoY) 3.3%, 3.2% forecast, 2.8% previous
•Sweden Nov CPI (MoM) 0.5%,0.4% forecast, 0.2% previous
•EU Oct Industrial Production (MoM 1.1%, 1.2% forecast,-0.2% previous
Looking Ahead - Economic Data (GMT)
•13:30 US Nov PPI (MoM) 0.5% forecast, 0.6% previous
•13:30 US Core PPI (MoM) 0.4%, 0.4% previous
•13:30 US Core Nov PPI (YoY) 9.2% forecast, 8.6% previous
•13:30 US Nov Core PPI (YoY) 7.2% previous ,6.8% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro strengthened on Tuesday as investors sold risky assets ahead of a slew of key central bank meetings. Investors looked beyond the spread of the Omicron variant and sought to buy any dip in euro ahead of a slew of central bank decisions this week. The U.S. Federal Reserve is expected to signal a faster pullback of asset purchases at the end of its two-day meeting on Wednesday, while the European Central Bank and the Bank of England will meet on Thursday to determine the course for their monetary policies into 2022.The euro gained 0.27% to $1.1313. Immediate resistance can be seen at 1.1349(38.2% fib), an upside break can trigger rise towards 1.1378 (Higher BB).On the downside, immediate support is seen at 1.1274 (23.6%fib), a break below could take the pair towards 1.1208(Lower BB).
GBP/USD: Sterling steadied on Tuesday, still near its lowest in a year versus the dollar, as investors weighed up strong UK jobs data with risks relating to the Omicron variant of COVID-19, ahead of the Bank of England meeting later in the week.Since the first Omicron cases were detected on Nov. 27 in Britain, the UK has imposed tougher restrictions. But Prime Minister Boris Johnson faces a large rebellion among his Conservative lawmakers in a parliamentary vote over the measures later on Tuesday. The pound, which fell on Monday due to Omicron-fears, steadied in early London trading on Tuesday. It edged higher against the dollar and at 0934 GMT was up 0.17% at $1.3235 still within reach of the one-year low of $1.3161 it hit last week . Immediate resistance can be seen at 1.3259 (38.2%fib), an upside break can trigger rise towards 1.3327 (61.8%fib).On the downside, immediate support is seen at 1.3185(38.2%fib), a break below could take the pair towards 1.3140 (Lower BB).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as investors awaited the outcome of the U.S. Federal Reserve meeting and US data. Data later in the day on U.S. factory gate inflation may cement expectations the Fed will announce an accelerated tapering of its stimulus, allowing it to wrap up bond-buying around March and proceed with rate hikes .The Fed's two-day meeting that begins later on Tuesday headlines a number of central banks announcing policy decisions this week, including the European Central Bank and the Bank of England on Thursday and the Bank of Japan on Friday. Immediate resistance can be seen at 0.9230(14DMA), an upside break can trigger rise towards 0.9275 (23.6%fib).On the downside, immediate support is seen at 0.9193 (50%fib), a break below could take the pair towards 0.9155 (61.8%fib).
USD/JPY: The dollar initially gained but gave up ground against the Japanese yen on Tuesday as the spread of the Omicron coronavirus variant rattled investors who were already on edge ahead of a slew of central bank decisions this week, including a key Federal Reserve meeting. The European Central Bank, the Bank of England and the Bank of Japan are also meeting this week, and are each heading toward normalising their own monetary policies. The Fed on Wednesday expected to signal a faster wind-down of its $120 billion a month bond buying programme in a move to fight high inflation, which could move it one step closer to raising interest rates. 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 rose on Tuesday, bucking the weakness in Asia and on Wall Street, as investors looked beyond the spread of the Omicron coronavirus variant and sought to buy any dip in stock prices ahead of a slew of central bank decisions this week.
At (GMT 10:49),UK's benchmark FTSE 100 was last trading up at 0.36 % percent, Germany's Dax was down by 0.12 % percent, France’s CAC finished was up by 0.05% percent.
Commodities Recap
Gold prices edged lower on Tuesday, as the dollar firmed, ahead of a Federal Reserve meeting that investors will be watching for an update on the pace at which the U.S. central bank plans to wind down its pandemic stimulus measures.
Spot gold fell 0.2% to $1,782.60 per ounce by 0923 GMT. U.S. gold futures dropped 0.2% to $1,784.60.
Oil prices dipped towards $74 a barrel on Tuesday after the International Energy Agency (IEA) said that the new Omicron coronavirus variant was set to dent the global demand recovery while supplies were set to increase next year.
Brent crude oil futures dropped 24 cents, or 0.32%, to $74.15 a barrel by 0957 GMT, while U.S. West Texas Intermediate (WTI) crude futures declined by 27 cents, or 0.38%, to $71.02.