News

Europe Roundup: Sterling gains on global recovery trade, European shares gain, Gold dips, Oil prices slip after China cuts import quotas-December 30th,2021

Posted at 30 December 2021 / Categories Market Roundups


Market Roundup

•Spanish HICP (MoM) 1.2%,0.2% previous

•Spanish CPI (YoY) 6.7% , 5.5% previous

•Spanish Dec HICP (YoY) 6.7%,5.8% forecast,5.5% previous

Looking Ahead - Economic Data (GMT) 

•13:30 US Continuing Jobless Claims 1,868K forecast, 1,859K previous

•13:30 US Jobless Claims 4-Week Avg 206.25K previous

•13:30 US Initial Jobless Claims 208K forecast ,205K previous

•14:45 US Dec Chicago PMI 62.0 forecast ,61.8 previous

•16:30 US Natural Gas Storage -125B forecast , -55B previous

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro fell in thin holiday trading on Thursday as   surging cases of coronavirus weighed on single currency. Omicron coronavirus infection cases continue to be in the spotlight, but sentiment is being driven by signs of milder symptoms and fewer hospitalizations, which suggests this strain poses a lower risk to the economy than previous variants. Markets seem confident that-though it is more contagious-the Omicron variant of coronavirus will do little to derail the economic recovery from the Covid-19 pandemic. Immediate resistance can be seen at 1.1339 (38.2%fib), an upside break can trigger rise towards 1.1366 (23.6%fib).On the downside, immediate support is seen at 1.1321(50%fib), a break below could take the pair towards 1.1296(61.8%fib).

GBP/USD: Sterling strengthened against dollar on Thursday as investors turned back towards riskier currencies and equities. Sterling reached as high as $1.3505, its best mark in six weeks, before meeting resistance and falling back. Many traders away ahead of the year-end, analysts cautioned against reading too much into the moves. Investors are awaiting data on U.S. jobless claims, which have remained near decade lows in recent weeks. That reflects a tight labor market in which employers are holding on to their workers despite concerns around the Omicron variant of the coronavirus. Immediate resistance can be seen at 1.3508(23.6%fib), an upside break can trigger rise towards 1.3547(Higher BB).On the downside, immediate support is seen at 1.3445(5DMA), a break below could take the pair towards 1.3435(38.2%fib).

USD/CHF: The dollar edged higher against the Swiss franc on Thursday  as investors favoured riskier currencies along with equities. The spread of Omicron clouded what is the last trading day of the year for many exchanges around the globe. The Fed outlook has combined with safe-haven flows to underpin the U.S. dollar, though it ran into some profit taking overnight.U.S. weekly initial jobless claims data, a key metric of the country's economic health, is due at 1330 GMT later in the day. Immediate resistance can be seen at 0.9163 (5DMA), an upside break can trigger rise towards 0.9176 (38.2%fib).On the downside, immediate support is seen at 0.9140  (50%fib), a break below could take the pair towards 0.9121 (Lower BB ).

USD/JPY: The dollar edged higher against the Japanese yen on Thursday as investors remained cautiously optimistic about the economic consequences of a surge in cases of the Omicron coronavirus variant. Data showed global COVID-19 infections hit a record high over the past seven days but, comforted by data suggesting the virus may turn out to be milder than in previous waves, many governments have resisted imposing widespread new lockdowns. Strong resistance can be seen at 115.19 (23.6% fib), an upside break can trigger rise towards 115.45 (Higher BB).On the downside, immediate support is seen at 114.83 (5 DMA), a break below could take the pair towards 114.60 (38.2% fib).

Equities Recap                          

European shares inched higher on Thursday on hopes fresh coronavirus-related curbs and restrictions may not be needed going into the new year, even as a surge in COVID-19 cases due to the Omicron variant kept a lid on gains.

At (GMT 10:30 ),UK's benchmark FTSE 100 was last trading up at 0.11 percent, Germany's Dax was up by 0.10 percent, France’s CAC  was up by 0.33 percent.

Commodities Recap

Gold was on course to record its worst performance in six years, as prices dropped below a key support level in thin trade on Thursday, pressured by a higher dollar and firm Treasury yields.

Spot gold fell 0.4% to $1,796.47 per ounce by 0745 GMT, dipping below $1,800, a level it has closed above consistently for a week.

Oil prices eased on Thursday after the world's top importer China cut the first batch of crude import allocations for 2022, offsetting the impact of U.S. data showing fuel demand had held up despite soaring Omicron coronavirus infections.

Brent crude futures fell 52 cents, or 0.7%, to $78.71 a barrel at 1022 GMT. U.S. West Texas Intermediate (WTI) crude futures slid 59 cents, or 0.8%, to $75.97 a barrel after six straight sessions of gains.


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