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Europe Roundup: Sterling gains as risk appetite improves, European shares gain, Gold hits more than one-week high, Oil trades at one-month high-December 28th,2021

Posted at 28 December 2021 / Categories Market Roundups


Market Roundup

• Sweden Nov Household Lending Growth (YoY) 6.6% , 6.6% previous

• Sweden Nov Trade Balance 0.30B, 0.80B

Looking Ahead Economic Data

•12:55 US Redbook (YoY) 16.4% previous

•14:00 US Oct S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.8% previous

•14:00 US Oct    S&P/CS HPI Composite - 20 n.s.a. (YoY) 18.5% forecast, 19.1% previous

•14:00 US Dec US CB Consumer Confidence 109.5 previous

•15:30 US Dec Texas Services Sector Outlook  22.7 previous

•15:30 US Dec Dallas Fed Services Revenues 25.4 previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro strengthened on Tuesday  as year-end sentiment got a boost from Wall Street's record highs overnight, eclipsing underlying worries over the Omicron variant of the coronavirus. Wall Street trading resumes later in the global day following a holiday on Friday. U.S. stocks closed at records on Thursday amid signs Omicron may cause a milder level of illness, even as the highly transmissible strain led to a surge in case numbers around the world. The euro was up 0.02 percent at $1.1328. Immediate resistance can be seen at 1.1335(38.2%fib), an upside break can trigger rise towards 1.1366 (Higher BB).On the downside, immediate support is seen at 1.1324(5DMA), a break below could take the pair towards 1.1306 (50%fib).

GBP/USD: Sterling strengthened against dollar on Tuesday as easing concerns over the Omicron coronavirus variant boosted risk appetite. Investors appeared to be guardedly optimistic that the global recovery would regain steam next year even though the emergence of the highly-transmissible Omicron variant has prompted border closures and mobility restrictions in most countries once again. Sterling was last trading up 0.10% at $1.3400. Immediate resistance can be seen at 1.3468(38.2%fib), an upside break can trigger rise towards 1.3534(23.6%fib).On the downside, immediate support is seen at 1.3458(50 %fib), a break below could take the pair towards 1.3359 (61.8%fib).

USD/CHF: The dollar edged lower against the Swiss franc on Tuesday  amid thin trading volumes, with investors trying to shrug off the impact from Omicron-driven travel disruptions and store closures. Data last week showing the Omicron variant being less deadly than feared, and new pills and more vaccines to fight COVID-19 also spurred risk appetite.U.S. airlines have cancelled or delayed thousands of flights over the past three days due to COVID-19-related staff shortages. Immediate resistance can be seen at 0.9177 (5DMA), an upside break can trigger rise towards 0.9197 (38.2%fib).On the downside, immediate support is seen at 0.9160  (50%fib), a break below could take the pair towards 0.9121 (61.8% fib ).

USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as safe-havens fell out of favour after Wall Street's rally to a record high consigned Omicron concerns to the background.The Japanese currency weakened as far as 114.935 yen per dollar for the first time since Nov. 26 before recovering to last trade around 114.80, helped by a decline in long-term Treasury yields. The dollar index , which measures the currency against six major rivals, was little changed from the previous session at 96.078. Strong resistance can be seen at 115.00 (23.6% fib), an upside break can trigger rise towards 115.19 (Higher BB).On the downside, immediate support is seen at 114.63 (5 DMA), a break below could take the pair towards 114.40 (38.2% fib).

Equities Recap                          

European inched higher on Tuesday, helped by another record-setting day on Wall Street and after Britain and France held off from imposing more COVID curbs before year-end.

At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading down at 0.02 percent, Germany's Dax was up by 0.73 percent, France’s CAC finished was up by 0.53 percent.

Commodities Recap

Gold prices climbed on Tuesday as the U.S. dollar weakened and concerns over the spread of the Omicron coronavirus variant led bullion's year-end rally to a more than one-month high.

Spot gold was up 0.3% at $1,816.70 an ounce by 1145 GMT, its highest since Nov. 22, while U.S. gold futures rose 0.5% to $1,818.20.

Oil prices extended gains on Tuesday, with Brent crude trading near $80 a barrel despite the rapid spread of the Omicron coronavirus variant, supported by supply outages and expectations that U.S. inventories fell last week.

Brent crude rose by $1.04, or 1.3%, to $79.64 a barrel by 1119 GMT. U.S. West Texas Intermediate (WTI) crude rose $1.15, or 1.5%, to $76.72.


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