Posted at 24 December 2021 / Categories Market Roundups
Market Roundup
•US Nov Durables Excluding Defense (MoM) 2.0% ,0.8% previous
•US Nov Core Durable Goods Orders (MoM) 0.8%,0.6%forecast, 0.5% previous
•Canada Oct GDP (MoM) 0.8%,0.8% forecast,0.1% previous
•US Continuing Jobless Claims 1,859K,1,820K forecast, 1,845K previous
•US Initial Jobless Claims 205K,205K forecast, 206K previous
•US Jobless Claims 4-Week Avg 206.25K, 203.75K previous
•US GDP (YoY) 3.80%, 3.97% previous
•US Nov Durable Goods Orders (MoM) 2.5%,1.6% forecast, -0.4% previous
•US Nov Goods Orders Non Defense Ex Air (MoM) -0.1%,0.6% forecast, 0.7% previous
•US Nov Real Personal Consumption (MoM ) 0.0% ,0.7% previous
•US Nov PCE Price index (YoY) 5.7,5.0 previous
•US Nov Personal Spending (MoM) 0.6%,0.6% forecast,1.3% previous
•US Nov Core PCE Price Index (MoM) 0.5%,0.4% forecast, 0.4% previous
•US Nov Core PCE Price Index (YoY) 4.7%,4.5% forecast, 4.1% previous
•US Dec Michigan Consumer Expectations 68.3,67.8 forecast, 63.5 previous
•US Nov New Home Sales (MoM) 12.4%,0.4% previous
•US Dec Michigan Inflation Expectations 4.8%,4.9% forecast, 4.9% previous
•US New Home Sales 744K, 770K forecast, 745K previous
Looking Ahead - Economic Data (GMT)
•10:30 Japan Nov Construction Orders (YoY) 2.1% previous
•10:30 Japan Nov Housing Starts (YoY) 7.1%,10.4% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
EUR/USD: The euro edged higher against dollar on Thursday as investors were optimistic about positive economic data and the impact of the Omicron coronavirus variant on the economy, even as COVID-19 case counts soar. Upbeat news on the vaccines and Omicron-related hospitalizations also helped boost investors' appetite for risk, lifting euro higher. Two vaccine makers said their shots protected against Omicron as UK data suggested the variant may cause proportionally fewer hospital cases than the Delta variant. Immediate resistance can be seen at 1.1347(23.6%fib), an upside break can trigger rise towards 1.1353 (Higher BB).On the downside, immediate support is seen at 1.1317 (38.2%fib), a break below could take the pair towards 1.1292 (50%fib).
GBP/USD: Sterling vaulted above $1.34 for the first time in a month on Thursday and also scaled a one-month high against the euro, surfing a general uptick in risk sentiment and a steep rise in Britain's short-dated government bond yields. The pound was up 0.5% against the dollar at $1.34190, just off a one-month peak of $1.34370 hit earlier . Against the euro, it was up 0.55% at 84.360 pence having risen as high as 84.16 pence . The pound has risen 1.6% and 1.2% against the dollar and euro respectively since Dec. 15, a day before the Bank of England hiked interest rates. Immediate resistance can be seen at 1.3453 (38.2% fib), an upside break can trigger rise towards 1.3517 (23.6%fib).On the downside, immediate support is seen at 1.3396(38.2%fib), a break below could take the pair towards 1.3341 (61.8%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday, adding to gains over the previous two days, as oil prices rose and domestic data showed the economy likely expanding for a sixth straight month in November. Canadian gross domestic product rose 0.8% in October from September, in line with analyst estimates, while a preliminary estimate for November showed growth of 0.3%.The loonie was trading 0.1% higher at 1.2815 to the greenback , after trading in a range of 1.2800 to 1.2853. Immediate resistance can be seen at 1.2846(38.2%fib), an upside break can trigger rise towards 1.2860 (5DMA).On the downside, immediate support is seen at 1.2794 (50%fib), a break below could take the pair towards 1.2739(61.8%fib).
USD/JPY: The dollar rose against the Japanese yen on Thursday as investors turned back towards riskier assets at the expense of safe-haven yen. Dollar rallied against yen as investors welcomed signs that the Omicron variant of COVID-19 might be less severe than feared, as well as other positive signals like robust U.S. economic data. U.S. consumer confidence improved further in December, suggesting the economy would continue to expand in 2022. The survey from the Conference Board showed more consumers planned to buy a house and big-ticket items such as motor vehicles and major household appliances as well as go on vacation over the next six months. Strong resistance can be seen at 114.25 (23.6%fib), an upside break can trigger rise towards 115.00 (Psychological level).On the downside, immediate support is seen at 114.05 (5DMA), a break below could take the pair towards 113.82 (38.2%fib).
Equities Recap
Equities Recap
European shares hit a one-month high on Thursday, led by gains in banking stocks as signs the impact of the Omicron variant may be less severe than feared led to improved risk appetite that pushed eurozone and Treasury yields higher.
UK's benchmark FTSE 100 closed up by 0.43 percent, Germany's Dax ended up by 1.04 percent, France’s CAC finished the day up by 0.77 percent.
The S&P 500 notched a record-high close on Thursday, with oil prices also rising, as investors and traders were optimistic about positive economic data and discounted the impact of the Omicron coronavirus variant on the economy, even as COVID-19 case counts soar.
Dow Jones closed up by 1.89% percent, S&P 500 closed up by 2.05% percent, Nasdaq settled up by 2.06% percent.
Commodities Recap
Gold prices hovered around the key $1,800-per-ounce level on Thursday ahead of the year-end holidays, even as the dollar steadied and appetite for riskier assets improved on easing fears over a fallout from the Omicron coronavirus variant.
Spot gold was up 0.4% to $1,809.89 per ounce by 1841 GMT, while U.S. gold futures settled up 0.5% at $1,811.70 per ounce.
Oil prices bounced in a light-volume session on Thursday on signs that the worst effects of the Omicron variant might be more containable than previously feared, even as countries imposed travel restrictions on surging infection levels.
Brent crude futures settled up $1.56, or 2.1%, at $76.85 a barrel, the highest close since Nov. 26, and a gain of 4.5% on the week.
U.S. West Texas Intermediate (WTI) crude futures ended up $1.03, or 1.4%, at $73.79 a barrel, to rise 4.1% on the week.