Posted at 15 December 2021 / Categories Market Roundups
Market Roundup
•UK Nov Core PPI Output (MoM) 0.8% ,0.7% previous
•UK Nov Core PPI Output (YoY) 7.9%,6.5% previous
•UK Nov PPI Input (MoM) 1.0%,0.5%forecast, 1.4% previous
•UK Nov CPI (YoY) 5.1%,4.7% forecast, 4.2% previous
•UK Nov CPI (MoM) 0.7%,0.4% forecast, 1.1% previous
•French Nov CPI (MoM) 0.4%,0.4% forecast,0.4% previous
•French Nov HICP (MoM) 0.4%,0.4% forecast,0.4% previous
•Spanish Nov CPI (YoY) 5.5%,5.6% forecast, 5.4% previous
•Italian Nov HICP (YoY) 3.9%,4.0% forecast, 3.2% previous
•Italian Nov CPI (MoM) 0.6%, 0.7% forecast, 0.7% previous
•Canada Nov Core CPI (MoM) 0.0% ,0.6% previous
•Canada Nov Core CPI (YoY) 3.6%,3.6% forecast,3.8% previous
•Canada Nov CPI (MoM) 0.2, 0.2% forecast, 0.7% previous
•US Nov Retail Sales (MoM) 0.3% ,0.8% forecast, 1.7% previous
•US Nov Core Retail Sales (MoM) 0.3% ,0.9% forecast, 1.7% previous
•US Nov Export Price Index (MoM) 1.0% ,0.5% forecast, 1.5% previous
•US Dec NY Empire State Manufacturing Index 31.90, 25.00,30.90 previous
•Canada Oct Manufacturing Sales (MoM) 4.3% ,4.1% forecast, -3.0% previous
Looking Ahead - Economic Data (GMT)
•15:00 US Oct Retail Inventories Ex Auto 0.4% previous
•15:00 US Oct Business Inventories (MoM) 1.1% forecast,0.7% previous
•15:30 US Crude Oil Inventories -2.082M forecast,-2.082M previous
•15:30 US Cushing Crude Oil Inventories 2.373M previous
•19:00 US Interest Rate Decision 0.25% forecast ,0.25% previous
Looking Ahead - Economic events and other releases (GMT)
•19:00 US FOMC Economic Projection
•19:00 US FOMC Statement
•19:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro was little changed on Wednesday as markets jostled with the different paths major central banks are choosing between fighting inflation or the economic drag of the pandemic.The U.S. dollar index measuring the currency against major peers was up 0.2% at 96.5520 in afternoon trading in New York after having earlier given up much of its Monday gain of 0.3%.The rebound came largely at the euro's expense as markets digested another report of unexpectedly high U.S. inflation that could push American interest rates much higher and sooner than in Europe. The euro last traded at $1.1264, not far from $1.1184 hit in November, which was its lowest in over a year. Immediate resistance can be seen at 1.1286(50% fib), an upside break can trigger rise towards 1.13723 (Higher BB).On the downside, immediate support is seen at 1.1252 (38.2%fib), a break below could take the pair towards 1.1198(Lower BB).
GBP/USD: The British pound climbed to more than one-week highs on Wednesday after data showed UK inflation data zipped to a decade high, hardening expectations of a rate hike as early as February.While markets on Wednesday were assigning more than a 60% probability of a 15 bps interest rate increase, up from 50% on Tuesday, the emergence of the Omicron variant of the coronavirus may force policymakers to hold off from tightening policy . Data released on Wednesday showed British consumer price inflation had surged to its highest in more than 10 years in November. Immediate resistance can be seen at 1.3280 (50%fib), an upside break can trigger rise towards 1.3347 (61.8%fib).On the downside, immediate support is seen at 1.3212(38.2%fib), a break below could take the pair towards 1.3151 (Lower BB).
USD/CHF: The dollar declined against the Swiss franc on Wednesday 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 0.9250(Daily high), an upside break can trigger rise towards 0.9275 (23.6%fib).On the downside, immediate support is seen at 0.9227 (38.2%fib), a break below could take the pair towards 0.9192 (50%fib).
USD/JPY: The dollar rose against the Japanese yen on Wednesday as investors looked towards a key Federal Reserve policy meeting to see if it would reinforce growing market expectations for earlier and additional rate rises next year. The dollar index which measures the greenback against six major peers was at 96.557, having gained 0.5% so far this week in choppy trading. It is testing last week's 96.954, which would be a two-week top. The dollar's gains have been broad-based, though daily moves were muted ahead of the Fed decision. 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 113.60 (5DMA), a break below could take the pair towards 113.32(38.2%fib).
Equities Recap
Technology stocks helped drive gains in Europe's major indexes on Wednesday, ahead of the U.S. Federal Reserve's policy outcome that is likely to signal a quicker withdrawal of its pandemic stimulus.
At (GMT 13:40),UK's benchmark FTSE 100 was last trading up at 0.22 % percent, Germany's Dax was up by 0.38 % percent, France’s CAC finished was up by 0.70% percent.
Commodities Recap
Gold prices stabilised near a two-week low on Wednesday, as investors await the U.S. Federal Reserve's decision on the pace at which the central bank plans to taper its pandemic stimulus measures.
Spot gold was little changed at $1,769.50 per ounce, as of 1219 GMT. U.S. gold futures fell 0.2% to $1,769.60.
Oil prices fell for a third day straight on Wednesday on growing signs that supply growth will outpace demand next year, and as the World Health Organization said COVID-19 vaccines may be less effective against the Omicron variant.
Brent crude futures fell 80 cents, or 1.1%, to $72.90 a barrel by 1111 GMT, after losing 69 cents on Tuesday.