Posted at 14 December 2021 / Categories Market Roundups
Market Roundup
•US Nov PPI (MoM) 0.8%, 0.5% forecast, 0.6% previous
•US Core PPI (MoM) 0.7%,0.4%, 0.4% previous
•US Core Nov PPI (YoY) 9.6%,9.2% forecast, 8.6% previous
•US Nov Core PPI (YoY) 7.7%,7.2% previous ,6.8% previous
Looking Ahead - Economic Data (GMT)
•00:00 New Zealand Feb Budget Balance -25.277B previous
•00:00 New Zealand Feb Net Debt Forecast 34.00% previous
•00:00 New Zealand Feb Economic Forecast -15.127B previous
•07:30 China Nov Industrial Production (YoY) 3.6% forecast,3.5% previous
•07:30 China Nov Retail Sales (YoY) 4.6% forecast, 4.9% previous
•07:30 China Nov Fixed Asset Investment (YoY) 5.4% forecast, 6.1% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped on Tuesday as dollar strengthened after data showing factory gate inflation at 11-year highs confirmed market expectations of a faster taper pace at this week's Federal Reserve meeting. November year-on-year U.S. headline producer prices came in at 9.6%, up from 8.6% in October and 1.9% in January, the highest level since the series started in 2010. Many investors expect the U.S. central bank to signal a faster wind-down of asset purchases, and thus, a quicker start to interest rate hikes in order to contain the rapid rise in prices. The euro dipped 0.03% to $1.1255. Immediate resistance can be seen at 1.1284(5DMA), an upside break can trigger rise towards 1.1325 (38.2%fib).On the downside, immediate support is seen at 1.1250(38.2%fib), a break below could take the pair towards 1.1197(Lower BB).
GBP/USD: Sterling stayed within recent ranges against dollar on Tuesday as uncertainty around the Omicron variant of COVID-19 limited the market impact of strong UK jobs data. 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. Pound was up 0.1% at $1.3228 against dollar. 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/CAD: The Canadian dollar on Tuesday fell to its lowest level in nearly three months against the greenback, as worries about the Omicron variant dampened investor sentiment and ahead of a government fiscal update that could show limited new spending. The price of oil, one of Canada's major exports, declined as the International Energy Agency said the new variant was set to dent the global demand recovery. The Canadian dollar was trading 0.4% lower at 1.2855 to the greenback , after touching its weakest level since Sept. 20 at 1.2863.Immediate resistance can be seen at 1.2874(23.6%fib), an upside break can trigger rise towards 1.2892(Higher BB).On the downside, immediate support is seen at 1.2810(38.2%fib), a break below could take the pair towards 1.2790(5DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as investors held their breath ahead of the update on monetary policy due out from the Federal Reserve on Wednesday. The Federal Reserve is expected on Wednesday to announce that it is speeding up the end of its pandemic-era bond purchases and signal a turn to interest rate increases next year as a guard against surging inflation. Expectations are that the Fed will announce a faster taper pace when its meeting concludes on Wednesday. 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 113.54 (5DMA ), a break below could take the pair towards 113.30 (38.2%fib).
Equities Recap
European shares reversed early gains to end lower for a fifth straight session on Tuesday as technology stocks weighed, while the healthcare sector dipped despite a 12.6% surge in Vifor Pharma.
UK's benchmark FTSE 100 closed down by 0.18 percent, Germany's Dax ended down by 1.08 percent, France’s CAC finished the day down by 0.69 percent.
Wall Street ended lower on Tuesday after data showed producer prices increased more than expected in November, solidifying expectations the Federal Reserve this week will announce a faster wind-down of asset purchases.
Dow Jones closed down by 0.30 percent, S&P 500 closed down by 0.75 percent, Nasdaq settled down by 1.14 % percent.
Treasuries Recap
U.S. Treasury yields rose across the curve on Tuesday but were well off session highs after data showed producer prices increased at the highest annual rate since 2010, solidifying expectations of a hawkish statement from the Federal Reserve this week.
The yield on 10-year Treasury notes was up 1.5 basis points to 1.439%.The yield on the 30-year Treasury bond was up 1.2 basis points to 1.825%.
Commodities Recap
Gold fell more than 1% on Tuesday after a jump in U.S. producer prices fuelled expectations for sooner-than-expected interest rate hikes ahead of the Federal Reserve's two-day meeting.
Spot gold fell 0.9% to $1,771.66 per ounce by 01:40 p.m. ET (1840 GMT). U.S. gold futures settled down 0.9% at $1,772.30.
Oil futures prices dropped toward $73 a barrel on Tuesday after the International Energy Agency (IEA) said the Omicron coronavirus variant is set to dent global demand recovery.
Brent crude futures fell 69 cents, or 0.9%, to $73.70. U.S. West Texas Intermediate (WTI) crude futures settled down 56 cents, or 0.8%, at $70.73.