Posted at 21 December 2021 / Categories Market Roundups
Market Roundup
•US Nov Leading Index (MoM) 1.1%, 0.8% ,0.9% previous
•US 3-Month Bill Auction 0.160% , 0.130% previous
•US 6-Month Bill Auction 0.075%,0.055% previous
Looking Ahead - Economic Data (GMT)
•07:30 New Zealand Credit Card Spending (YoY) -5.6% previous
Looking Ahead - Economic events and other releases (GMT)
•06:00 Australia RBA Meeting Minutes
Currencies Summaries
EUR/USD: The euro edged higher against dollar Monday but gains were limited as surging Omicron COVID-19 cases triggered tighter curbs in Europe and U.S. growth prospects dimmed after a $1.75 trillion domestic investment bill suffered a potentially fatal blow. The spread of the Omicron variant saw the Netherlands go into lockdown on Sunday and put pressure on others to follow, though the United States seemed set to remain open. The euro was last up 0.27% at $1.1270 . Immediate resistance can be seen at 1.1267 (38.2%fib), an upside break can trigger rise towards 1.1284 (21 DMA).On the downside, immediate support is seen at 1.1208 (Lower BB), a break below could take the pair towards 1.1173 (23.6%fib).
GBP/USD: The British pound slipped to a three-day low on Monday, nearing $1.32 versus the greenback as a broad risk-off mood swept through financial markets. Growing doubts about U.S. President Biden’s infrastructure program to see the light of day due to Democrat Joe Manchin’s ‘no’ is prompting a rethink about U.S. growth forecasts for 2022 while surging Omicron cases in Europe are driving worries of potential lockdowns. At current levels, the pound has erased all its gains sustained on the back of the Bank of England unexpectedly raising interest rates last week. Immediate resistance can be seen at 1.3244 (Daily high), an upside break can trigger rise towards 1.3259 (38.2%fib).On the downside, immediate support is seen at 1.3168(23.6%fib), a break below could take the pair towards 1.3148 (Lower BB).
USD/CAD: The Canadian dollar weakened on Monday to its lowest level this year against the greenback, as surging Omicron coronavirus cases and a setback to prospects for a U.S. domestic spending bill weighed on investor sentiment. The loonie was trading 0.5% lower at 1.2949 to the greenback, or 77.23 U.S. cents, the biggest decline among G10 currencies. It touched its weakest intraday level since December 2020 at 1.2963. Canadian retail sales data for October is due on Tuesday, which could offer clues on the strength of the domestic economy. Immediate resistance can be seen at 1.2951(5 DMA), an upside break can trigger rise towards 1.2987(Higher BB).On the downside, immediate support is seen at 1.2922(38.2%fib), a break below could take the pair towards 1.2871(5DMA).
USD/JPY: The dollar was little changed against the Japanese yen on Monday as renewed concerns over the fast-spreading Omicron variant kept investors cautious. The overall mood was bearish across global markets, with investors selling equities, riskier currencies and commodities as the spread of Omicron saw the Netherlands go into lockdown on Sunday while other countries weighed similar steps. The World Health Organization said on Saturday that Omicron cases were doubling in 1.5 to 3 days in areas of the world with community transmission, but noted that much remains unknown about the variant, including the severity of the illness it causes. Strong resistance can be seen at 113.90 (5 DMA), an upside break can trigger rise towards 113.88 (23.6%fib).On the downside, immediate support is seen at 113.26 (38.2%fib), a break below could take the pair towards 112.78 (38.2%fib).
Equities Recap
European stocks ended lower on Monday in their worst session for three weeks amid a wider equities sell-off, with investors fretting over the spectre of tighter pandemic curbs hitting the global economy as cases of the Omicron coronavirus strain surge.
UK's benchmark FTSE 100 closed down by 0.99 percent, Germany's Dax ended down by 1.88 percent, France’s CAC finished the day down by 0.82 percent.
U.S. stocks ended trading on Monday down by more than 1%, pressured lower by surging Omicron coronavirus cases and a possible fatal blow to a $1.75 trillion U.S. domestic spending bill, with oil prices plunging.
Dow Jones was trading down by 1.23 percent, S&P 500 was trading lower by 1.14 percent, Nasdaq was trading down by 1.24 percent.
Commodities Recap
Gold eased in choppy trading on Monday as investors tried to gauge the impact of soaring Omicron coronavirus cases and the extent of the U.S. Federal Reserve's rate hikes on soaring inflation.
Spot gold fell 0.2% to $1,793.33 per ounce, as of 1845 GMT, while U.S. gold futures settled down 0.6% at $1,794.60 per ounce.
Oil prices slumped on Monday as surging cases of the Omicron coronavirus variant in Europe and the United States stoked investor worries that new restrictions to combat its spread could dent fuel demand.
Brent crude futures fell $2, or 2.7%, to settle at $71.52 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $2.63, or 3.7%, to settle at $68.23 a barrel.