Posted at 22 December 2021 / Categories Market Roundups
Market Roundup
•US Nov Chicago Fed National Activity 0.37,0.76 previous
•13:30 US Corporate Profits (QoQ) (Q3) 3.4%, 4.2% previous
•13:30 US GDP Price Index (QoQ) (Q3) 5.9%, 5.9% forecast,5.9% previous
•13:30 US GDP (QoQ) (Q3) 2.3% ,2.1% forecast,2.1% previous
•15:00 US Dec CB Consumer Confidence 115.8,110.8 forecast, 109.5 previous
•15:00 US Existing Nov Home Sales (MoM) 1.9% ,0.8% previous
•15:00 US Nov Existing Home Sales6.46M, 6.52M, 6.34M previous
•15:30 US Gasoline Inventories5.533M, 0.467M, -0.719M previous
•15:30 US Crude Oil Inventories-4.715M,-2.750M forecast, -4.584M previous
Looking Ahead - Economic Data (GMT)
•06:00 Australia Nov Private Sector Credit (MoM) 0.5% previous
•10:30 Japan Coincident Indicator (MoM) 1.2% previous
•10:30 Japan Leading Index 102.1 previous
•10:30 Japan Leading Index (MoM) 1.9%1.9%
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Wednesday as traders turned more positive about the economic outlook, 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. Currency markets overall were muted on Wednesday, as volatility subsided in thin trading ahead of the holidays and after a flurry of central bank moves last week. 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/CAD: The Canadian dollar rallied against the greenback on Wednesday as a pickup in U.S. consumer confidence bolstered investor sentiment, but analysts were cautious about the loonie being out of danger after it fell to a one-year low earlier this week. The loonie was trading 0.5% higher at 1.2842 to the greenback, or 77.87 U.S. cents, after trading in a range of 1.2838 to 1.2924. On Monday, the currency touched its weakest level since December 2020 at 1.2963. Canada's GDP report for October, due on Thursday, could offer further clues on the strength of the economy. Domestic data was also upbeat. Factory sales rose 3.1% in November, a preliminary estimate showed. Immediate resistance can be seen at 1.2880 (38.2%fib), an upside break can trigger rise towards 1.2941 (23.6%fib).On the downside, immediate support is seen at 1.2826 (50%fib), a break below could take the pair towards 1.2781 (61.8% fib).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday after investors cheered positive economic data and the White House said it was resuming talks on a major social spending bill with a senator crucial to passing the legislation. The White House said on Wednesday that it would continue talks with Senator Joe Manchin, who delivered what appeared to be a fatal blow to Biden’s Build Back Better bill over the weekend by saying he would not support it.Strong resistance can be seen at 114.154 (23.6%fib), an upside break can trigger rise towards 114.26 (Higher BB).On the downside, immediate support is seen at 113.93 (5DMA), a break below could take the pair towards 113.53 (38.2%fib).
Equities Recap
European shares ended on Wednesday at near one-week highs, led by gains in technology and industrial stocks, even as investors worried about the outlook for global recovery amid a rise in COVID-19 cases due to the Omicron variant.
UK's benchmark FTSE 100 closed up by 0.61 percent, Germany's Dax ended down by 0.95 percent, France’s CAC finished the day up by 1 .24 percent.
Wall Street's main indexes pushed higher on Wednesday in a broad rally after upbeat consumer confidence and other economic data and hopeful developments about the severity of the Omicron coronavirus variant that is sweeping the world.
Dow Jones closed up by 0.74% percent, S&P 500 closed up by 1.02% percent, Nasdaq settled up by 1.18% percent.
Commodities Recap
Oil prices rose on Wednesday after a larger-than-expected drawdown in U.S. inventories, shaking off worries about the likely hit to economic activity from the spread of the Omicron coronavirus variant.
Brent crude futures ended the day up $1.31, or 1.8%, to $75.29 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled at $72.76 a barrel, up $1.64, or 2.3%.
Gold prices gained on Wednesday, aided by a retreat in the dollar and lingering fears that the Omicron coronavirus variant could throw a wrench in the global economic recovery.
Spot gold was last up 0.7% at $1,801.24 per ounce by 1839 GMT. U.S. gold futures settled up 0.8% at $1,802.20.