Posted at 06 January 2022 / Categories Market Roundups
Market Roundup
• US Dec Challenger Job Cuts 19.052K,14.875K previous
• US Challenger Job Cuts (YoY) -75.3%,-77.0% previous
• German Dec CPI (MoM) 0.4% forecast, -0.2% previous
• US Continuing Jobless Claims 1,754K, 1,688K forecast, 1,716K previous
• US Jobless Claims 4-Week Avg 204.50K, 199.25K previous
• US Initial Jobless Claims207K, 197K, 198K previous
• US Imports 304.40B, 290.70B previous
• US Exports 224.20B, 223.60B previous
• Canada Nov Trade Balance 3.13B, 2.03B forecast, 2.09B previous
• Canada Nov Exports 58.57B, 56.18B previous
• US Dec ISM Non-Manufacturing Prices 82.5, 82.3 previous
• US Dec ISM Non-Manufacturing Employment 54.9, 56.5 previous
• US Dec ISM Non-Manufacturing Business Activity 67.6, 71.0 forecast, 74.6 previous
• US Nov Factory Orders (MoM) 1.6%, 1.5% forecast 1.0% previous
• US Nov Factory orders ex transportation (MoM) 0.8% ,1.6% previous
• US Dec ISM Non-Manufacturing PMI 62.0, 66.9 forecast, 69.1 previous
Looking Ahead - Economic Data (GMT)
•23:30 Japan Foreign Bonds Buying -1,588.5B previous
•23:30 Japan Foreign Investments in Japanese Stocks -841.3B previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro was little changed against dollar on Thursday as investors ramped up expectations for a European Central Bank rate hike, a day after minutes from the Federal Reserve's last meeting pointed to faster-than-expected U.S. rate rises. Money market futures dated to the ECB's October meeting, showed a 10 basis point rate hike was almost fully priced in.Markets also priced in 15 basis points worth of tightening by December, versus around 13 bps on Wednesday . Investors will now look ahead to a key U.S. jobs report on Friday, which will follow new euro zone inflation data that the European Central Bank will watch closely. The euro stood broadly unchanged, slightly above the $1.13 mark. Immediate resistance can be seen at 1.1340(23.6%fib), an upside break can trigger rise towards 1.1382 (Higher BB).On the downside, immediate support is seen at 1.1303 (38.2%fib), a break below could take the pair towards 1.1277 (50%fib).
GBP/USD: The pound fell versus the dollar on Thursday, pulling back from some its recent gains in a dip driven by dollar strength following the release of more hawkish than expected Federal Reserve minutes.Risk-sensitive currencies such as the British pound, Australian dollar and Canadian dollar were down on the day versus the U.S. dollar, which was boosted late on Wednesday and overnight by the minutes of the Fed's December meeting. The pound was down 0.01% against the stronger dollar at $1.3532 .Immediate resistance can be seen at 1.3558 (23.6%fib), an upside break can trigger rise towards 1.3599 (Jan 5th high).On the downside, immediate support is seen at 1.3526(5DMA), a break below could take the pair towards 1.3488(38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as the sell-off in stocks on the prospect of faster U.S. interest rate hikes subsided and data showed Canadian exports climbing to a record high. Canada posted a trade surplus of C$3.1 billion in November, the largest since September 2008, helped by a 3.8% increase in exports. Canada's employment report for December, due on Friday, could offer further clues about the strength of its economy. The Canadian currency was trading 0.2% higher at 1.2723 to the greenback, or 78.60 U.S. cents, after earlier hitting its weakest level since Dec. 29 at 1.2813.Immediate resistance can be seen at 1.2737(38.2%fib), an upside break can trigger rise towards 1.2807 (23.6%fib).On the downside, immediate support is seen at 1.2689 (50%fib), a break below could take the pair towards 1.2637(61.8%fib).
USD/JPY: The U.S. dollar took a breather against yen after hiting 5-year high on Thursday, after riding the tailwind of minutes from the Federal Reserve's December policy meeting which bolstered expectations of a U.S. rate hike as early as March. The meeting minutes showed officials had discussed shrinking the Fed's overall asset holdings as well as raising interest rates sooner than expected to fight inflation. The dollar index which measures the greenback against major peers was unchanged on the day at 96.17 after creeping up closer to a 14-month high of 96.93. Strong resistance can be seen at 116.23(23.6%fib), an upside break can trigger rise towards 117.00 (Psychological level).On the downside, immediate support is seen at 115.67 (38.2%fib), a break below could take the pair towards 115.18(50%fib).
Equities Recap
European shares were in red on Thursday after the Federal Reserve signalled the possibility of faster-than-expected U.S. rate hikes and stimulus withdrawal.
UK's benchmark FTSE 100 closed down by 0.88 percent, Germany's Dax ended down by 1.35 percent, France’s CAC finished the day up by 1.73 percent.
Wall Street's headache over the potential of a relatively fast pullback from stimulus by the U.S. Federal Reserve lingered Thursday as stocks sold off again and government bond yields mostly marched higher.
Dow Jones closed down by 0.47 percent, S&P 500 closed down by 0.10 percent, Nasdaq settled down by 0.13 % percent.
Treasuries Recap
U.S. Treasury yields on most maturities rose again on Thursday as investors fretted over the Fed’s more hawkish stance, surging inflation and a deluge of supply.
Benchmark 10-year yields rose to 1.7530%, the highest since March 2021, and were last up slightly on the day to 1.7246%. U.S. 2-year yields, which track near-term rate expectations, rose to the highest since early March 2020
Commodities Recap
Gold prices slid to a two-week low on Thursday, pressured by rallying U.S. Treasury yields after the Federal Reserve signalled quicker increases to interest rates.
Spot gold was last down 1.2% at $1,788.25 an ounce by 13:47 ET (1847 GMT), after earlier hitting its lowest since Dec. 22. U.S. gold futures settled 2% lower at $1,789.20.
Oil prices rose about 2% on Thursday, extending their new year's rally, on escalating unrest in OPEC+ oil producer Kazakhstan and supply outages in Libya.
Brent crude futures rose $1.19 cents, or 1.5%, to settle at $81.99 a barrel, after hitting their highest since late November. U.S. West Texas Intermediate (WTI) crude gained $1.61, or 2.1%, to $79.46. The contract touched a session high of $80.24.