News

America’s Roundup: Dollar slips against its rivals after U.S. Fed tapering announcement, Wall Street ends higher, Gold gains, Oil rises on consumer demand, inventory decrease-December 16th,2021

Posted at 16 December 2021 / Categories Market Roundups


Market Roundup

•Canada Nov Core CPI (MoM) 0.0% ,0.6% previous

•Canada Nov Core CPI (YoY) 3.6%,3.6% forecast,3.8% previous

•Canada Nov CPI (MoM) 0.2, 0.2% forecast, 0.7% previous

•US Nov Retail Sales (MoM) 0.3% ,0.8% forecast, 1.7% previous

•US Nov Core Retail Sales (MoM) 0.3% ,0.9% forecast, 1.7% previous

•US Nov Export Price Index (MoM) 1.0% ,0.5% forecast, 1.5% previous

•US Dec NY Empire State Manufacturing Index 31.90, 25.00,30.90 previous

•Canada Oct Manufacturing Sales (MoM) 4.3% ,4.1% forecast, -3.0% previous

•US Oct Retail Inventories Ex Auto 0.5%,0.4% previous

•US Oct Business Inventories (MoM) 1.2%,1.1% forecast,0.7% previous

•US Crude Oil Inventories--4.584M,2.082M forecast,-2.082M previous

•US Cushing Crude Oil Inventories 1.294M,2.373M previous

•US Interest Rate Decision 0.25% ,0.25% forecast ,0.25% previous

Looking Ahead - Economic Data (GMT) 

•05:30 New Zealand Dec ANZ Business Confidence  -16.4 previous

•05:30 New Zealand Dec NBNZ Own Activity  15.0% previous

Looking Ahead - Economic events and other releases (GMT)

•08:00 Japan BoJ Monetary Policy Statement

•08:00 Japan BoJ Press Conference

Currency Summaries

EUR/USD: The euro strengthened on Wednesday after the US Federal Reserve's monetary policy decision didn't look overly aggressive. The Fed announced that it would end its  bond purchases during pandemics in March and pave the way for a three-quarter percent rate hike by the end of 2022 if it pulls out of the enacted policy at the beginning of the health crisis.. The euro last traded at $1.1286, not far from $1.1184 hit in November, which was its lowest in over a year. Immediate resistance can be seen at 1.1286(50% fib), an upside break can trigger rise towards 1.13723 (Higher BB).On the downside, immediate support is seen at 1.1252 (38.2%fib), a break below could take the pair towards 1.1198(Lower BB).

GBP/USD: The British pound climbed to more than one-week highs on Wednesday after data showed UK inflation data zipped to a decade high, hardening expectations of a rate hike as early as February.While markets on Wednesday were assigning more than a 60% probability of a 15 bps interest rate increase, up from 50% on Tuesday, the emergence of the Omicron variant of the coronavirus may force policymakers to hold off from tightening policy . Data released on Wednesday showed British consumer price inflation had surged to its highest in more than 10 years in November. Immediate resistance can be seen at 1.3280 (50%fib), an upside break can trigger rise towards 1.3347 (61.8%fib).On the downside, immediate support is seen at 1.2806(38.2%fib), a break below could take the pair towards 1.3151 (Lower BB).

USD/CAD: The loonie rose against its U.S. counterpart on Wednesday and rebounded from its lowest level in nearly four months as the Federal Reserve signaled that its inflation target had been met and that it would hike rates in 2022. The US central bank issued new economic forecasts showing three rate hikes on cards over the  next year and announced that it would end its  bond purchases from the pandemic in March by pulling out guidelines enacted at the beginning of the health crisis. The Canadian dollar was trading 0.1% higher at 1.2836 to the greenback .Immediate resistance can be seen at 1.2876(23.6%fib), an upside break can trigger rise towards 1.2936 (Daily high).On the downside, immediate support is seen at 1.2806 (38.2%fib), a break below could take the pair towards 1.2759 (50%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Wednesday after the Federal Reserve announced it would end its pandemic bond purchases in March as it backs away from policies enacted at the start of the health crisis. After its two-day monetary policy meeting, the Federal Reserve signaled that its inflation target had been met, and its announcement that it would end bond purchases paving the way for three  rate hikes, each a quarter percent , for late 2022. The dollar was up 0.4% at 114.02 versus the Japanese yen.Strong resistance can be seen at 113.94 (23.6%fib), an upside break can trigger rise towards 114.52 (Nov 19th high).On the downside, immediate support is seen at 113.60 (5DMA), a break below could take the pair towards 113.32(38.2%fib).

Equities Recap

European stocks rose on Wednesday, aided by stronger health and technology stocks but weakness in the retail and energy sectors capped gains.

UK's benchmark FTSE 100 closed down by  0.66 percent, Germany's Dax ended up by 0.15 percent, France’s CAC finished the day up by 0.47 percent.                        

 Wall Street closed significantly higher on Wednesday after the Federal Reserve announced it would end its pandemic bond purchases in March as it backs away from guidelines enacted at the beginning of the health crisis.

Dow Jones closed up  by  1.08% percent, S&P 500 closed up by 1.68% percent, Nasdaq settled up by 2.15%          percent.

Commodities Recap

Gold prices rebounded from initial losses to trade higher on Wednesday amid a falling dollar after the US Federal Reserve announced it would end its pandemic stimulus  in March.

Spot gold rose 0.4% to $1,777.82 per ounce by 04:28 p.m. ET (2128 GMT). U.S. gold futures settled down 0.4% to $1,764.50.

Oil prices rose on Wednesday and rebounded from initial losses after US inventory data showed strong consumer demand and  the Federal Reserve announced it would end its  bond purchases due to the pandemic in March to curb rising inflation.

Brent crude futures settled up 18 cents, or 0.2%, to $73.88 a barrel. U.S. West Texas Intermediate (WTI) crude ended up 14 cents to $70.87 a barrel.


Simply the best forex trading platform. Mobile platform also available.

download mt4

Start trading forex in 5 minutes. Get 20% deposit bonus.

Open Live Account

Free $10000 forex virtual trading account. Practice makes perfect.

Open Demo Account
LiveZilla Live Chat Software