Posted at 22 December 2021 / Categories Market Roundups
Market Roundup
•UK GDP (QoQ) (Q3)1.1%,1.3% forecast, 5.5% previous
•UK GDP (YoY) (Q3) 6.8%,6.6% forecast, 23.6% previous
•UK Business Investment (QoQ) (Q3) -2.5%,0.4% forecast, 4.5% previous
•Sweden Nov Retail Sales (MoM) 0.9%, 0.4% previous
Looking Ahead - Economic Data (GMT)
•US Nov Chicago Fed National Activity 0.76 previous
•13:30 US Corporate Profits (QoQ) (Q3) 4.2% previous
•13:30 US GDP Price Index (QoQ) (Q3) 5.9% forecast,5.9% previous
•13:30 US GDP (QoQ) (Q3) 2.1% forecast,2.1% previous
•15:00 US Dec CB Consumer Confidence 110.8 forecast, 109.5 previous
•15:00 US Existing Nov Home Sales (MoM) 0.8% previous
•15:00 US Nov Existing Home Sales 6.52M, 6.34M previous
•15:30 US Gasoline Inventories 0.467M, -0.719M previous
•15:30 US Crude Oil Inventories-2.750M forecast, -4.584M previous
•18:00 U.S. Baker Hughes Oil Rig Count 471 previous
•18:00 U.S. Baker Hughes Total Rig Count 576 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged higher against dollar on Wednesday as markets were optimistic that the Omicron coronavirus variant would only have a limited economic fallout, even as global cases surged and more countries announced restrictions. The slight gains in euro came even as Germany, Scotland, Ireland, Portugal, the Netherlands and South Korea have reimposed lockdowns or other restrictions on activity in recent days. The euro was last up 0.10% at $1.1296 . Immediate resistance can be seen at 1.1322 (38.2%fib), an upside break can trigger rise towards 1.1355 (Higher BB).On the downside, immediate support is seen at 1.1264 (Daily low), a break below could take the pair towards 1.1226 (23.6%fib).
GBP/USD: Sterling steadied against the dollar on Wednesday, despite official data showing Britain's economy grew more slowly than previously thought before the Omicron variant surge seen in recent weeks. Official data on Wednesday showed gross domestic product grew by 1.1% in the third quarter between July and September, weaker than a preliminary estimate of growth of 1.3%. Immediate resistance can be seen at 1.3320 (50%fib), an upside break can trigger rise towards 1.3347 (Higher BB).On the downside, immediate support is seen at 1.3245(38.2%fib), a break below could take the pair towards 1.3185 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as market appetite for risk assets improved after a selloff in global markets, though a surge in COVID-19 cases kept investors worried about the near-term economic outlook. Market players struggled to point to a clear reason for the "risk on" mood, saying markets were struggling to assess the consequences of the Omicron variant of COVID-19, leading to unseasonable volatility. Immediate resistance can be seen at 0.9254 (Daily high), an upside break can trigger rise towards 0.9275 (23.6%fib).On the downside, immediate support is seen at 0.9228(38.2%fib), a break below could take the pair towards 0.9193 (50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as traders prepared for more volatility and the impact of rising cases of the COVID-19 variant Omicron. Omicron continues to keep traders on edge and infections are multiplying across Europe, the United States and Asia, causing countries across the globe to consider new curbs on movement and reimpose quarantine periods for incoming visitors. Strong resistance can be seen at 114.34 (23.6%fib), an upside break can trigger rise towards 114.66 (Higher BB).On the downside, immediate support is seen at 113.87 (5DMA), a break below could take the pair towards 113.77 (38.2%fib).
Equities Recap
European equities edged slightly higher on Wednesday, with markets optimistic that the Omicron coronavirus variant would only have a limited economic fallout, even as global cases surged and more countries announced restrictions.
At (GMT 11:10),UK's benchmark FTSE 100 was last trading lower at 0.02 percent, Germany's Dax was up by 1.17 percent, France’s CAC was last up by0.23 percent.
Commodities Recap
Gold prices were confined to a small range in seasonally-quieter trading on Wednesday, as a higher risk appetite and a firm dollar countered safe-haven demand fuelled by the rapidly spreading Omicron COVID-19 variant.
Spot gold was little changed at $1,787.83 per ounce by 0954 GMT, while U.S. gold futures were also steady at $1,788.20.
Oil prices were steady on Wednesday as fears of tight supply were offset by COVID-19 concerns after Singapore suspended quarantine-free travel and Australia renewed its vaccination push due to a surge in Omicron variant cases.
U.S. West Texas Intermediate (WTI) crude futures edged up 37 cents, or 0.55%, to $71.49 a barrel at 1050 GMT after jumping 3.7% on Tuesday.