News

Europe Roundup: Sterling gains as risk appetite returns, European shares rise, Gold edges higher, Oil prices climb but worries over Omicron linger-December 21st,2021

Posted at 21 December 2021 / Categories Market Roundups


Market Roundup

•UK Nov Public Sector Net Borrowing  16.62B,15.40B forecast, 18.04B

•UK Nov Public Sector Net Cash Requirement  36.980B, 61.452B previous

•German Jan GfK German Consumer Climate -6.8, -2.7 forecast, -1.6 previous

•Swiss Nov Trade Balance 6.161B, 5.651B previous

•Sweden Business Confidence 116, 118 previous

•Sweden Dec Consumer Confidence  98.7, 99.7 previous

•Italian Oct Industrial Sales (MoM) 2.80%,  0.10% previous

•Italian Oct  Industrial Sales (YoY)  16.90% ,15.20% previous

•Belgium Dec Consumer Confidence -4, 1 previous

Looking Ahead - Economic Data (GMT) 

•13:30 Canada Nov New Housing Price Index (MoM)  0.9% previous

•13:30 Canada Nov Retail Sales (MoM)  1.0% forecast, -0.6% previous

•13:30 Canada Oct  Core Retail Sales (MoM)  1.5% forecast, -0.2% previous

•13:30 US Current Account (Q3) -205.0B forecast, -190.3B previous

•13:55 US Redbook (YoY) 16.0% previous

•15:00 EU Dec Consumer Confidence  -8.0 forecast, -6.8 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Fx Beat 

EUR/USD: The euro edged higher against dollar on Tuesday as risk sentiment recovered partially after a selloff in global markets. Major currencies held within well-worn trading ranges, however, as a surge in cases of the Omicron coronavirus variant forced countries to reimpose restrictions, raising concerns over the near-term economic outlook. The dollar index , which measures the currency against six major peers, was down 0.1% at 96.42, but above Monday's low of 96.33. The euro was last up 0.27% at $1.1293 . Immediate resistance can be seen at 1.1267 (38.2%fib), an upside break can trigger rise towards 1.1284 (21 DMA).On the downside, immediate support is seen at 1.1208 (Lower BB), a break below could take the pair towards 1.1173 (23.6%fib).

GBP/USD: The British pound strengthened on Tuesday as rebound in global risk appetite pushed the British pound slightly higher. A combination of fears about the rapid spread of the Omicron coronavirus variant, possible lockdowns in Europe, as well as a blow to U.S. President Joe Biden's fiscal spending plans caused a "risk-off" move in currency markets on Monday, with the pound dropping to as low as $1.3175. As the move reversed on Tuesday, however, the pound recovered in line with other risk-sensitive currencies. It was up 0.3% on the day at 0919 GMT, at $1.3243. Immediate resistance can be seen at 1.3262 (38.2%fib), an upside break can trigger rise towards 1.3330 (50%fib).On the downside, immediate support is seen at 1.3173 (23.6%fib), a break below could take the pair towards 1.3159 (Lower BB).

USD/CHF: The dollar dipped against the Swiss franc on Tuesday as investors weighed up the extent to which the Omicron coronavirus variant would hit economies around the world. Market feared that rapidly rising cases of the coronavirus variant would yet again force governments around the world to impose lockdown measures, potentially choking off fragile recoveries from similar measures earlier in the year. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was down 0.1% at 96.42.Immediate resistance can be seen at 0.9230 (38.2%fib), an upside break can trigger rise towards 0.9250 (20th Dec high).On the downside, immediate support is seen at 0.9192(50%fib), a break below could take the pair towards 0.9152 (61.8%fib).

USD/JPY: The dollar edged lower against the Japanese yen on Tuesday as investors favoured safe-haven yen  as surge in Omicron COVID-19 cases kept investors worried. Trading has been choppy in markets worldwide amid a global surge in Omicron cases, the possibility of more restrictions and thin year-end liquidity. Many nations are on high alert as surging Omicron cases triggered tighter curbs in Europe and threatened to swamp the global economy ahead of the New Year. Strong resistance can be seen at 113.69(5 DMA), an upside break can trigger rise towards 113.88 (23.6%fib).On the downside, immediate support is seen at 113.26 (38.2%fib), a break below could take the pair towards 112.78 (38.2%fib).

Equities Recap

European stocks rose on Tuesday  as risk appetite returned back after yesterday’s fall on concerns that the pandemic and a blow to Democratic spending plans in the U.S. might threaten the recovery of the global economy.        

At (GMT 10:00),UK's benchmark FTSE 100 was last trading higher 0.75 percent, Germany's Dax was up by 0.50 percent, France’s CAC was last up by 0.34 percent.

Commodities Recap

Gold prices edged higher on Tuesday as a subdued U.S. dollar made bullion cheaper for holders of other currencies while the threat to global economy from a surge in the Omicron variant cases also lifted the metal's safe-haven appeal.

Spot gold was up 0.2% at $1,792.25 per ounce, as of 0556 GMT, while U.S. gold futures fell 0.1% to $1,792.90.

Oil prices steadied on Tuesday after a sharp fall in the previous session as investors worried about the rapid spread of the Omicron coronavirus variant and the impact of renewed restrictions on fuel demand.

Brent crude was down 8 cents, or 0.1%, at $71.44 a barrel by 0903 GMT, while U.S. West Texas Intermediate (WTI) crude rose 5 cents, or 0.1%, to $68.66 a barrel.


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