Posted at 22 December 2021 / Categories Market Roundups
Market Roundup
•Canada Nov Retail Sales (MoM) 1.6%, 1.0% forecast, -0.6% previous
•Canada Oct Core Retail Sales (MoM) 1.3%,1.5% forecast, -0.2% previous
•US Current Account (Q3) -214.8B, -205.0B forecast, -190.3B previous
•US Redbook (YoY) 16.4%,16.0% previous
•EU Dec Consumer Confidence -8.3,-8.0 forecast, -6.8 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•05:20 Japan Monetary Policy Meeting Minutes
Currency Summaries
EUR/USD: The euro edged higher against dollar on Tuesday as risk sentiment recovered partially after a selloff in global markets. Euro had fallen earlier in the European session but recovered as investors were cautiously optimistic that the economic hit would be less severe this time, as they bought stocks and bond yields. Stocks rebounded and bond yields rose on Tuesday as investors looked past the recent setbacks. The euro was last up 0.01% at $1.1284 . Immediate resistance can be seen at 1.1290 (38.2%fib), an upside break can trigger rise towards 1.1315 (23.6%fib).On the downside, immediate support is seen at 1.1271 (50%fib), a break below could take the pair towards 1.1251 (61.8%fib).
GBP/USD: The British pound strengthened on Tuesday after Britain announced support for businesses hit by the latest wave of COVID-19 infections amid fears of new restrictions on activity. A combination of the rapid spread of the Omicron coronavirus variant, possible lockdowns in Europe, as well as a blow to U.S. President Joe Biden's fiscal spending plans caused a "risk-off" move in currency markets on Monday, with the pound dropping to as low as $1.3175. As the move reversed on Tuesday, however, the pound recovered in line with other risk-sensitive currencies. It was up 0.3% at $1.3263. Immediate resistance can be seen at 1.3320 (50%fib), an upside break can trigger rise towards 1.3340 (Higher BB).On the downside, immediate support is seen at 1.3248(38.2%fib), a break below could take the pair towards 1.3182(Lower BB).
USD/CAD: The loonie rose slightly against its U.S. counterpart on Tuesday but remained near its weakest level since the start of the year as investors weighed how far domestic restrictions would go to contain the fast-spreading variant of the Omicron coronavirus . On Monday, Quebec, Canada's second most populous province, ordered bars, gyms and casinos shut and directed people to work only from home due to spiking COVID-19 cases. The loonie was trading 0.1% higher at 1.2913 to the greenback , after trading in a range of 1.2910 to 1.2947. Immediate resistance can be seen at 1.2950(23.6%fib), an upside break can trigger rise towards 1.2966 (Higher BB).On the downside, immediate support is seen at 1.2883(38.2%fib), a break below could take the pair towards 1.2848 (9 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday after a bout of profit-taking in the previous session, as improving risk sentiment boosted riskier currencies such as greenback. Risk appetite took a hit on Monday after U.S. Senator Joe Manchin, a Conservative Democrat who is instrumental in President Joe Biden's hopes for a $ 1.75 trillion national investment bill known as Build Back Better, on Monday Sunday said he would not support the package, causing a sell-off in global markets. Surging Omicron coronavirus cases also pushed investors to look for safe havens such as dollar. Strong resistance can be seen at 114.25(23.6%fib), an upside break can trigger rise towards 114.64 (Higher BB).On the downside, immediate support is seen at 114.13 (5DMA), a break below could take the pair towards 113.66 (38.2%fib).
Equities Recap
European shares ended higher on Tuesday, recovering Monday's losses, with a jump in commodity-linked and travel stocks offsetting concerns about the spread of the Omicron coronavirus variant.
UK's benchmark FTSE 100 closed up by 1.38 percent, Germany's Dax ended up by 1.36 percent, France’s CAC finished the day up by 1.38 percent.
Wall Street closed significantly higher on Tuesday after a bruising session the prior day, with oil prices also gaining as investors sought riskier assets despite surging cases of the Omicron coronavirus variant around the world.
Dow Jones closed up by 1.60% percent, S&P 500 closed up by 1.75 % percent, Nasdaq settled up by 2.40% percent.
Treasuries Recap
U.S. Treasury yields were higher on Tuesday as traders focused on optimistic economic conditions despite the rapidly spreading Omicron variant of the coronavirus, and discounted inflation fears at a 20-year bond auction.
The benchmark 10-year note fell as low as 1.353%, the lowest since Dec. 3.
Commodities Recap
Gold prices eased on Tuesday as the dollar recovered some lost ground and appetite for riskier assets returned with investors looking past the economic risks posed by the Omicron coronavirus variant.
Spot gold was down 0.2% at $1,786.50 per ounce, as of 1836 GMT, and U.S. gold futures settled down 0.3% at $1,788.70.
The oil prices settled more than 3% higher on Tuesday, as oil rebounded on renewed the risk appetite , but the investors remained careful, as omicron coronavirus cut holiday travel plans, reduced fuel demand outlook.
Brent crude settled up $2.46, or 3.4%, at $73.98 a barrel, and U.S. West Texas Intermediate (WTI) crude rose $2.51, or 3.7%, to $71.12 a barrel.