Posted at 17 December 2021 / Categories Market Roundups
Market Roundup
•UK Core Nov Retail Sales (YoY) 2.7%,2.4% forecast, -1.9% previous
•UK Core Nov Core Retail Sales (MoM) 1.1%,0.8% forecast, 1.6% previous
•UK Nov Retail Sales (MoM) 1.4%,0.8% forecast, 0.8% previous
•UK Nov Retail Sales (YoY) 4.7%,4.2% forecast, -1.3% previous
•German Nov PPI (MoM) 0.8%, 1.4% forecast, 3.8% previous
•German Nov PPI (YoY) 19.2%,19.9% forecast, 18.4% previous
•German Nov Car Registration (MoM) 11.0%, -9.3% previous
• German Nov Car Registration (YoY) -31.7% forecast, -34.9% previous
•German Dec Business Expectations 92.6, 93.5 forecast, 94.2 previous
•German Dec Current Assessment 96.9, 97.5 forecast, 99.0 previous
•German Dec Ifo Business Climate Index 94.7, 95.3 forecast, 96.5 previous
•EU Nov Core CPI (YoY) 2.6%,2.6% forecast, 2.6% previous
•EU Nov CPI (YoY) 4.9% , 4.9% forecast, 4.9% previous
•Canada Oct Foreign Securities Purchases by Canadians 5.41B, 17.19B previous
•Canada Oct Foreign Securities Purchases 23.92B, 20.02B previous
•Canada Oct Budget Balance (YoY) -72.25B,-68.57B previous
•Canada Oct Budget Balance -3.68B, -11.41B previous
Looking Ahead - Economic Data (GMT)
•18:00 U.S. Baker Hughes Oil Rig Count 467 previous
•18:00 U.S. Baker Hughes Total Rig Count
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped on Friday as traders wrestled with this week's surprisingly hawkish turn from major central banks in the fight against inflation, and as rising Omicron cases spark worries about the hit to the global economy. The hawkish tilt from central banks this week including the Federal Reserve and Bank of England, and to a lesser degree the European Central Bank, was initially greeted by a wave of buying from investors confident policymakers will curb higher inflation. But the mood has since turned gloomier as traders fret markets pumped up on cheap money are vulnerable to even the smallest of pullbacks in stimulus. Immediate resistance can be seen at 1.1345 (38.2% fib), an upside break can trigger rise towards 1.1363 (Higher BB).On the downside, immediate support is seen at 1.1268 (38.2%fib), a break below could take the pair towards 1.1209(Lower BB).
GBP/USD: The British pound edged lower on Friday but was on track to post its biggest weekly rise since October after the Bank of England this week became the first G7 economy to raise interest rates. The BoE stunned markets on Thursday by raising interest rates by 15 bps to 0.25%, sending gilt yields, bank stocks and the pound shooting higher. Britain became the first G7 economy to hike rates since the onset of the pandemic, and the U.S. Federal Reserve this week also signalled plans to tighten policy in 2022. The European Central Bank only slightly reined in stimulus. Immediate resistance can be seen at 1.3328 (50%fib), an upside break can trigger rise towards 1.3388 (61.8%fib).On the downside, immediate support is seen at 1.3255(38.2%fib), a break below could take the pair towards 1.3170 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as markets approached the end of a busy week in which major central banks laid out plans to unwind pandemic-era stimulus. The greenback got a lift after a Federal Reserve official said in a television interview that the Fed will gain optionality to raise interest rates in 2022 by ending bond purchases by March. Central banks are moving at different speeds to adjust their monetary policies, underlining deep uncertainties about how the fast-spreading Omicron coronavirus variant will hit the global economy and how persistently high inflation will be. Immediate resistance can be seen at 0.9206(38.2%fib), an upside break can trigger rise towards 0.9217 (11DMA).On the downside, immediate support is seen at 0.9174 (50%fib), a break below could take the pair towards 0.9135(61.8%fib).
USD/JPY: The dollar dipped against the Japanese yen on Friday as demand for safe havens such as yen rose as investors wrestled with a hawkish turn from major central banks in the fight against inflation and rising numbers of Omicron cases. The hawkish tilt from central banks this week including the Fed and Bank of England, and to a lesser degree the European Central Bank, was initially greeted by a wave of buying from investors confident policymakers will curb higher inflation. But the mood has since turned gloomier as traders fret that markets pumped up on cheap money are vulnerable to even the smallest of pullbacks in stimulus. Strong resistance can be seen at 113.94 (23.6%fib), an upside break can trigger rise towards 114.28 (Dec 15th 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 stock markets slipped Friday, as markets adjust to a new reality that central banks are tightening monetary policy even in the face of another Covid-induced slowdown.
UK's benchmark FTSE 100 closed up at 0.13%percent, Germany's Dax was closed down by 0.67 % percent, France’s CAC finished the day down by 1.12% percent.
Commodities Recap
Gold rose above the key $1,800 level on Friday and was set for its first weekly gain in five as worries over the Omicron surge and hot inflation drove investors to safe-haven assets.
Spot gold was up 0.3% at $1,804.78 per ounce by 11:01 a.m. ET (1601 GMT), taking its rise so far this week to 1.2%. U.S. gold futures firmed 0.5% to $1,807.30.
Oil prices dipped on Friday, putting the market on track for a weekly loss, as surging cases of the Omicron coronavirus variant raised fears that new restrictions may hit fuel demand.
Brent crude was down $1.54, or 2%, at $73.48 a barrel at 1510 GMT while U.S. West Texas Intermediate (WTI) crude dropped $1.51, or 2%, to $70.87 a barrel.