America’s Roundup:Dollar drops to one-week low, Wall Street ends lower, Gold climbs, Oil rises around 2% on strong U.S. demand, upbeat Fed outlook-December 17th,2021

Posted at 17 December 2021 / Categories Market Roundups

Market Roundup

•US Jobless Claims 4-Week Avg 203.75K , 218.75K previous

•US Initial Jobless Claims 206K, 200K forecast, 184K previous

•US Continuing Jobless Claims 1,845K, 1,936K forecast, 1,992K previous

•US Nov Housing Starts (MoM)  11.8%, -0.7% previous

•US Dec Philadelphia Fed Manufacturing Index  15.4, 30.0 forecast, 39.0 previous

•US Nov Building Permits (MoM)  3.6%,4.2% previous

•US Nov Housing Starts  1.679M forecast, 1.568M forecast, 1.520M previous

•US Nov Building Permits  1.712M forecast, 1.663M forecast, 1.653M previous

•US Dec Philly Fed Prices Paid  66.10, 80.00 previous

•Canada Oct Wholesale Sales (MoM)  1.4% forecast, 1.4% forecast, 1.0% previous

•Canada ADP Nonfarm Employment Change231.8K forecast, 65.8K previous      

•US Nov Industrial Production (YoY)  5.27%,5.14% previous        

•US Nov Industrial Production (MoM)  0.5%,0.7% forecast, 1.6% previous

•US Dec Services PMI  57.5, 58.5 forecast, 58.0 previous

•US Dec Markit Composite PMI  56.9, 57.2 previous

•US Dec Manufacturing PMI  57.8, 58.5  forecast, 58.3 previous

•US Dec KC Fed Composite Index  24, 24 previous

Looking Ahead - Economic Data (GMT) 

•02:20  Japan BoJ Interest Rate Decision -0.10%  forecast, -0.10%  previous

Looking Ahead - Economic events and other releases (GMT)

•02:20  Japan  BoJ Press Conference

Currency Summaries

EUR/USD: The euro strengthened against dollar on Thursday after European Central Bank adopted more hawkish stances than markets had expected, giving a boost to the euro. The ECB on Thursday cut back its stimulus further but promised generous support for the euro zone's economy in 2022..The ECB only slightly reined in stimulus, as it strives for sustainable economic growth, saying it would wind down its 1.85 trillion euro Pandemic Emergency Purchase Programme by March. Immediate resistance can be seen at 1.1364(50% fib), an upside break can trigger rise towards 1.1400(Psychological level).On the downside, immediate support is seen at 1.1288 (38.2%fib), a break below could take the pair towards 1.1207(Lower BB).

GBP/USD: The pound appreciated against the dollar on Thursday after the Bank of England surprised investors by raising interest rates, while the European Central Bank announced a cut in monetary stimulus . The UK became the first G7 economy to hike rates since the pandemic began, and the US Federal Reserve also signaled plans to tighten monetary policy in 2022, while the ECB only slightly reined in stimulus. Sterling was up 0.4% at $1.3319 , while it rose 0.4% versus the euro to 84.85 pence .Immediate resistance can be seen at 1.3370 (50%fib), an upside break can trigger rise towards 1.3391(Higher BB).On the downside, immediate support is seen at 1.3297(38.2%fib), a break below could take the pair towards 1.3269 (5DMA).

USD/CAD: The loonie gained strength against its US counterpart on Thursday as investors focused on central banks like the Bank of Canada, which could join the Federal Reserve to raise interest rates from pandemic-era rock-bottom levels. Bank of Canada Governor Tiff Macklem said on Wednesday that  Canada's economic slowdown caused by the coronavirus pandemic had eased considerably, a key signal that the central bank should start raising rates soon. Its benchmark interest rate is at an all-time low of 0.25%. The benchmark interest rate is at an all-time low of 0.25%. The Canadian dollar strengthened 0.4% to 1.2785 per greenback , after trading in a range of 1.2763 to 1.2857 .Immediate resistance can be seen at 1.2806(38.2%fib), an upside break can trigger rise towards 1.2865 (23.6%fib ).On the downside, immediate support is seen at 1.2763 (50%fib), a break below could take the pair towards 1.2709(61.8%fib).

USD/JPY: The dollar dipped against the Japanese yen on Thursday  as markets moved toward risk while sorting a raft of central bank policy statements for clues to coming differences in interest rates and economic strength. The different paths taken by major central banks underline deep uncertainties about how the fast-spreading Omicron variant will hit economies and about how much each should do to fight surging inflation, which is hitting hard in the United States and Britain, but less so in Europe.  The Bank of Japan announces a policy decision later on Friday, but no change is expected to the core elements of its ultra-loose policy with inflation still stuck well below the central bank's target. 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 113.32 (38.2%fib), a break below could take the pair towards 112.83 (50%fib).

Equities Recap

European shares had their best day in more than a week on Thursday, led by gains in banks and miners after the European Central Bank promised continued support to the economy, still choosing to incrementally withdraw stimulus.

UK's benchmark FTSE 100 closed up  by  1.25 percent, Germany's Dax ended up  by 1.03percent, France’s CAC finished the day up by 1.24 percent.

The Nasdaq ended sharply lower on Thursday as the Federal Reserve's announcement of a faster end to its pandemic-era stimulus pushed investors away from Big Tech and toward more economically sensitive sectors.

Dow Jones closed down by 0.08%percent, S&P 500 closed down  by 0.87% percent, Nasdaq settled down  by  2.47 % percent.

Treasuries Recap

The U.S. Treasury curve steepened on Thursday in choppy trading, in a surprising move, a day after the Federal Reserve doubled the pace of its monthly bond-buying tapering and flagged three interest rate increases next year.

Commodities Recap

Gold rose more than 1% on Thursday as the dollar weakened after the U.S. Federal Reserve decided to accelerate the withdrawal of its pandemic-era stimulus in a widely expected move.

Spot gold was 1% higher at $1,795.41 per ounce by 01:42 p.m. ET (1842 GMT). U.S. gold futures settled up 1.9% to $1,798.20.

Oil prices rose around 2% on Thursday, as record U.S. implied demand, falling crude stockpiles and an upbeat economic outlook from the Federal Reserve trumped fears of the Omicron coronavirus variant hurting global consumption.

Brent crude oil rose $1.14, or 1.5%, to settle at $75.02 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.51, or 2.1%, to settle at $72.38 a barrel, a 2.13 percent gain.

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