America’s Roundup: Dollar up as risk sentiment sours, sterling dips on Brexit fears, Wall Street ends mixed, Gold gains, Oil pulls back amid New York coronavirus curbs, gains for a 6th week-December 12th,2020

Market Roundup

•US Nov PPI (YoY)  0.1%,0.8% forecast, 0.5% previous

•US Nov PPI (MoM ) 0.2% forecast, 0.3% previous

•US Nov Core PPI (YoY) 1.4%, 1.5% forecast, 1.1% previous

•US Nov Core PPI (MoM) 0.1%,  0.2% forecast, 0.1% previous

•Canada  Capacity Utilization Rate (Q3) 76.5%,77.5% forecast, 70.3% previous

•Russia Oct Trade Balance 6.44B, 8.20B forecast, 10.05B previous

•US Dec Michigan Inflation Expectations  2.3%,2.8% previous

•US Dec Michigan  Current Conditions  91.8,87.0 forecast, 87.0 previous

•US Michigan Consumer Sentiment  81.4  ,76.2%, 76.5 forecast, 76.9 previous

•US Michigan Consumer Expectations 91.8, 71.0 forecast, 70.5   previous

•US Michigan 5-Year Inflation Expectations 2.50%, 2.50% previous

•Russia GDP Quarterly (YoY) (Q3) 2.3%, -3.6% forecast, -8.0% previous

Looking Ahead – Economic Data (GMT) 

•No data ahead

Looking Ahead – Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro edged lower against dollar on Friday as tricky Brexit negotiations and uncertainty over U.S. stimulus talks capped euro’s gains. Investors were cautious after British Prime Minister Boris Johnson said on Thursday there was “a strong possibility” Britain and the European Union would fail to strike a trade deal. The euro was taking a breather, down 0.12% against the dollar at 1.2116. The common currency has soared 15% from three-year lows at the height of the March markets panic and has added nearly 2% in two weeks since finally breaking $1.20 after multiple attempts. Immediate resistance can be seen at 1.2160 (23.6%fib), an upside break can trigger rise towards 1.2200 (Psychological level).On the downside, immediate support is seen at 1.2103 (38.2%fib), a break below could take the pair towards 1.2061 (50% fib).

GBP/USD: The pound declined against dollar on Friday as fears that post-Brexit trade deal might not be reached before the end of 2020 weighed on pound. Sterling is under pressure, down about 0.75% at $1.3193 ahead of a weekend of brinkmanship as British and EU negotiators have been told they have until the end of Sunday to decide whether a trade deal is possible. The pound has slipped 1.8% this week as British and European leaders have expressed doubts that they will be able to salvage a deal. Immediate resistance can be seen at 1.3236 (50%fib), an upside break can trigger rise towards 1.3302 (61.8%fib).On the downside, immediate support is seen at 1.3157 (38.2%fib), a break below could take the pair towards 1.3070 (23.6 % fib).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as investors were  worried about the risk of a disorderly Brexit and delays over a U.S. fiscal package, with the currency pulling back from a two-and-a-half-year high the day before. The loonie was trading 0.2% lower at 1.2763 to the greenback , after touching on Thursday its strongest intraday level since April 2018 at 1.2702. For the week, the currency was up 0.1%, its fourth straight weekly advance. Immediate resistance can be seen at 1.2760 (50%fib), an upside break can trigger rise towards 1.2792 (61.8%fib).On the downside, immediate support is seen at 1.2730 (38.2%fib), a break below could take the pair towards 1.2693 (23.6%fib).

USD/JPY: The dollar declined  against the Japanese yen on Friday as concerns over delayed U.S. fiscal stimulus amid a surge in COVID-19 cases and the increasing likelihood that Britain will exit the European Union without a deal. Sentiment worsened as investors turned attention back to the prospect of more business closures to stem the spread of COVID-19 and continued volatility from Brexit. Another 2,902 U.S. deaths were reported on Thursday, a day after a record 3,253 people died, a pace projected to continue for the next two to three months until a vaccine can be widely distributed. Strong resistance can be seen at 104.23 (38.2%fib), an upside break can trigger rise towards 104.53 (23.6% fib).On the downside, immediate support is seen at 103.93 (50%fib), a break below could take the pair towards 103.65(61.8%fib).

Equities Recap

European shares slipped on Friday, ending an action-packed week on a somber note on worries over the economic impact of the resurgent COVID-19 pandemic and the fate of a Brexit trade deal.

UK’s benchmark FTSE 100 closed down by 0.80 percent, Germany’s Dax ended down by 1.36 percent, France’s CAC finished the day down by 0.76 percent.                 

The S&P 500 and Nasdaq were lower on Friday, as uncertainty over fresh economic stimulus dented confidence, although strong gains from Walt Disney helped keep the Dow Industrials afloat.

Dow Jones closed up by 0.16 percent, S&P 500 closed down by 0.13  percent, Nasdaq settled down   by 0.23 percent.

Treasuries Recap

A risk-off move drove Treasury yields down across maturities on Friday, with the two-year yield falling to a four-month low, furthering speculation that the Federal Reserve may announce adjustments to its Treasury purchases at next week’s meeting.

The benchmark 10-year last down by 1.5 basis points at 0.892% and the 30-year was down by 1.4 basis points.

Commodities Recap

Gold rose on Friday en route to a second straight weekly gain as investors bet on an imminent U.S. COVID-19 relief package.

Spot gold advanced 0.5% to $1,843.54 per ounce at 11:31 a.m. EST (1631 GMT), having earlier dipped as much as 0.6%. U.S. gold futures gained 0.6% to $1,847.40.

Oil prices settled lower on Friday, as demand worries due to new coronavirus-related restrictions on business in New York overshadowed progress toward vaccination programs.

Brent futures settled down 28 cents, or 0.6% at $49.97 a barrel. The contract rose above $51 a barrel on Thursday to an early-March high.

U.S. West Texas Intermediate (WTI) crude fell 21 cents, or 0.5%, to $46.57, having risen almost 3% in the previous session.

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