Market Roundup
•US Dec CPI Index, s.a 261.78, 260.82 previous
•US Dec Real Earnings (MoM) 0.1%, 0.1% previous
•US Dec CPI, n.s.a (MoM) 0.09%,-0.06% previous
•US Dec Core CPI Index 270.12, 269.89 previous
•US Dec CPI Index, n.s.a. 260.47 , 260.43 forecast, 260.23 previous
•US Dec Core CPI (MoM) 0.1%, 0.1% forecast, 0.2% previous
•US Dec CPI (YoY) 1.4% , 1.3% forecast, 1.2% previous
•US Dec CPI (MoM) 0.4%, 0.4% forecast,0.2% previous
•US Dec Core CPI (YoY) 1.6%, 1.6% forecast, 1.6% previous
•US Crude Oil Inventories-3.247M,- 2.266M forecast, -8.010M previous
•US Dec Cleveland CPI (MoM) 0.1%, 0.1% previous
Looking Ahead – Economic Data (GMT)
•23:50 Japan Nov Core Machinery Orders (YoY) -15.4% forecast, 2.8% previous
•23:50 Japan PPI (MoM) 0.2% forecast,-0.2% previous
•23:50 Japan Dec PPI (YoY) -2.2% forecast, -2.2% previous
•23:50 Japan Nov Core Machinery Orders (MoM) -6.2% forecast,17.1% previous
•3:15 New Zealand Dec FPI (MoM) -0.9% previous
•05:20 Japan Foreign Investments in Japanese Stocks -85.5B previous
•05:20 Japan Foreign Bonds Buying-291.6B previous
•06:00 Australia Home Loans (MoM) 0.8% previous
•07:00 China Dec House Prices (YoY) 4.0% previous
•07:30 China Jan Thomson Reuters IPSOS PCSI 71.23 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Wednesday after data showed U.S. consumer prices increased solidly in December amid a surge in the cost of gasoline. U.S. consumer prices increased in December, with households paying more for gasoline, though underlying inflation remained tame as the economy battled a raging COVID-19 pandemic, which has weighed on the labor market and the services industry. The Labor Department said on Wednesday its consumer price index increased 0.4% last month after gaining 0.2% in November. Immediate resistance can be seen at 1.2219 (38.2%fib), an upside break can trigger rise towards 1.2328 (23.6%fib).On the downside, immediate support is seen at 1.2117 (38.2%fib), a break below could take the pair towards 1.2028 (61.8%fib).
GBP/USD: Sterling strengthened against dollar on Wednesday as optimism over the pace of Britain’s vaccination rollout also offered support. Following the completion of a Brexit trade deal in December, investors have turned their attention to Britain’s economy and its COVID-19 vaccination campaign. Britain is in a race against time to roll out the inoculation programme, Prime Minister Boris Johnson said, as deaths hit record highs and hospitals ran out of oxygen, and his top medical adviser warned the pandemic’s worst weeks were near. Immediate resistance can be seen at 1.3700 (Psychological level), an upside break can trigger rise towards 1.3759 (Higher BB).On the downside, immediate support is seen at 1.3617 (38.2%fib), a break below could take the pair towards 1.3557 (50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil, one of Canada's major exports, pulled back from an earlier 11-month high and the greenback broadly climbed. U.S. crude prices were down 0.3% at $53.04 a barrel as rising global COVID-19 cases took the shine off an earlier rally spurred by a bigger-than-expected drop in U.S. crude inventories The Canadian dollar was trading 0.1% lower at 1.2725 to the greenback, or 78.59 U.S. cents, having traded in a range of 1.2703 to 1.2746 .Immediate resistance can be seen at 1.2736 (38.2%fib), an upside break can trigger rise towards 1.2773 (25 EMA).On the downside, immediate support is seen at 1.2656 (23.6%fib), a break below could take the pair towards 1.2600 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes supported dollar. Investors are betting that the incoming Biden administration would ramp up U.S. distribution of coronavirus vaccines and spend big on more stimulus, which will contribute to a global economic recovery and increased demand for commodities. Strong resistance can be seen at 103.76 (50%fib), an upside break can trigger rise towards 104.05 (38.2%fib).On the downside, immediate support is seen at 103.48(61.8%fib), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European stocks closed slightly higher on Wednesday, with deal-related gains in French grocer Carrefour and Spain’s Telefonica offsetting wider concerns about extended COVID-19 lockdowns.
UK's benchmark FTSE 100 closed down by 0.13 percent, Germany's Dax ended up by 0.11 percent, France’s CAC finished the day up by 0.21 percent.
Wall Street’s three major indexes were advancing slightly after Wednesday’s choppy morning session as investors appeared to be taking a wait-and-see approach while Congress began impeachment hearings.
Dow Jones closed down by 0.03 percent, S&P 500 ended up by 0.23 percent, Nasdaq finished the up by 0.43 percent.
Treasuries Recap
U.S. Treasury yields slid on Wednesday as the Treasury Department completed its final sale of $120 billion in coupon-bearing supply this week, in which investors showed strong demand for long-dated bonds.
Thirty-year bond yields slid to a session low of 1.807% from a high of 1.915% on Tuesday, the highest level since March 20.
Five-year note yields fell to 0.476%, down from Tuesday when they traded at the highest since March 26.
Commodities Recap
Oil prices fell on Wednesday, pulling back from recent gains, on concerns that rising global COVID-19 will hamper global fuel demand.
Brent crude prices settled at $56.06 a barrel, down 52 cents, or 0.9%. U.S. West Texas Intermediate (WTI) settled at $52.91 a barrel, falling 30 cents, or 0.6%.
