Market Roundup
•Weekly jobless claims at 885,000 vs 862,000 in prior week
•US Dec Philly Fed New Orders 2.3, 37.9 previous
•US Dec Philly Fed Prices Paid 27.10,, 38.90 previous
•Canada ADP Nonfarm Employment Change- 40.8K, 79.5K previous
•US Jobless Claims 4-Week Avg 812.50K ,776.00K previous
•US Initial Jobless Claims 885K, 800K forecast, 853K previous
•US Continuing Jobless Claims 5,508K, 5,598K forecast, 5,757K previous
•US Philly Fed Employment 8.5 ,27.2 previous
•US Dec Philly Fed CAPEX Index 23.80 ,25.50 previous
•US Dec Philly Fed Business Conditions 39.2, 44.3 previous
•US Nov Building Permits 1.639M, 1.550M forecast, 1.544M previous
•US Nov Building Permits (MoM) 6.2% ,-0.1% previous
•US Nov Housing Starts (MoM) 1.2% 4.9% previous
•US Nov Housing Starts 1.547M ,1.530M, 1.530M previous
•US Dec Philadelphia Fed Manufacturing 11.1, Index 20.0, 26.3 previous
•15:30 US Natural Gas Storage -122B, -120B forecast , -91B previous
•16:00 US Dec KC Fed Composite Index 12,11 previous
•16:00 US Dec KC Fed Manufacturing Index 14, 20 previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Nov National Core CPI (YoY) -0.9%,-0.7% previous
•23:50 Japan Nov National CPI (YoY) -0.4% previous
•23:50 Japan Nov CPI, n.s.a (MoM) -0.1% previous
•02:30 Japan BoJ Interest Rate Decision -0.10% forecast,-0.10% previous
Looking Ahead - Economic events and other releases (GMT)
•03:00 Japan BoJ Press Conference
•03:00 Japan BoJ Monetary Policy Statement
Currency Summaries
EUR/USD: The euro strengthened against dollar on Thursday as hopes of more stimulus in the United States and potential COVID-19 vaccine rollouts in Europe boosted euro. Germany and France said they were set to begin inoculating their citizens with the Pfizer-BioNtech vaccine in the last week of December, once it is approved by the European Medicines Agency. The euro was up 0.2% on Thursday at $1.2315 and within striking distance of $1.2400.Immediate resistance can be seen at 1.2262 (Daily high), an upside break can trigger rise towards 1.2300 (Psychological level).On the downside, immediate support is seen at 1.2225 (38.2%fib), a break below could take the pair towards 1.2202 (50% fib).
GBP/USD: Sterling rose against struggling dollar on Thursday as reports of progress in Brexit trade talks boosted appetite for the British currency. With just two weeks left to the end of a Brexit transition period on Dec. 31, Britain and the European Union are in the final stretch of talks to keep about 1 trillion dollars of annual trade free of tariffs and quotas. The pound is benefiting from an improvement in the narrative on the chances of a Brexit trade deal this week, almost a year after Britain formally left the European Union. Immediate resistance can be seen at 1.3626 (23.6%fib), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, immediate support is seen at 1.3571 (38.2%fib), a break below could take the pair towards 1.3540 (50%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as investors grew more hopeful that lawmakers in Washington would agree to a stimulus bill, with the loonie approaching the 2-1/2-year high it touched earlier this week. The safe-haven U.S. dollar fell against a basket of major currencies and the price of oil, one of Canada's major exports moved higher. U.S. crude oil futures were up 0.6% at $48.12 a barrel. The Canadian dollar was trading 0.3% higher at 1.2707 to the greenback, or 78.70 U.S. cents, having traded in a range of 1.2697 to 1.2750. On Tuesday, the loonie touched its strongest level since April 2018 at 1.2684.Immediate resistance can be seen at 1.2746 (38.2% fib), an upside break can trigger rise towards 1.2763 (11DMA).On the downside, immediate support is seen at 1.2684 (23.6%fib), a break below could take the pair towards 1.2600 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Thursday as growing signs of a bumper U.S. stimulus package dented the dollar’s appeal. Democrats and Republicans sounded more positive over a $900 billion COVID-19 aid bill while the Federal Reserve said it would keep pouring cash into financial markets through its bond buying programmes until the U.S. economy was on a more sound trajectory. Strong resistance can be seen at 102.99 (38.2%fib), an upside break can trigger rise towards 103.22 (50%fib).On the downside, immediate support is seen at 103.00 (38.2%fib), a break below could take the pair towards 102.88 (23.6%fib).
Equities Recap
European shares remained at 10-month highs on Thursday, as hopes of more stimulus in the United States and potential COVID-19 vaccine rollouts in Europe strengthened the case for a global economic recovery.
UK's benchmark FTSE 100 closed down by 0.30 percent, Germany's Dax ended down by 0.75percent, France’s CAC finished the day up by 0.04 percent.
Wall Street’s main indexes were lower in choppy trading on Thursday, as renewed worries about Sino-U.S. trade relations added to fears of an extended economic downturn due to the virus outbreak.
Dow Jones closed up by 0.49% percent, S&P 500 closed up by 0.58% percent, Nasdaq settled up by 0.84% percent.
Treasuries Recap
Long-dated Treasury yields rose on Thursday afternoon on hopes the U.S. Congress would pass a $900 billion stimulus package before the weekend, shaking off morning data showing distress in the labor market.
The 10-year yield was last up 1.3 basis points to 0.933%. The 30-year yield was last up 1.6 basis points at 1.680%.
Commodities Recap
Oil climbed on Thursday and touched a nine-month high, with traders optimistic about progress toward a U.S. fiscal stimulus deal and record-breaking refining demand in China and India.
Brent crude futures settled up 42 cents at $51.50 a barrel, and touched a session high of $51.90.U.S. West Texas Intermediate (WTI) crude futures rose by 54 cents to $48.36 a barrel, with a session high of $48.59. Both benchmarks hit their highest since early March.
Gold prices rose over 1% to a one-month peak on Thursday as the dollar spiralled lower on hopes of more coronavirus relief aid and the U.S. Federal Reserve’s pledge to funnel more cash and keep interest rates low.
Spot gold jumped 1.2% to $1,885.76 per ounce at 11:40 a.m. EST (1640 GMT), having hit a one-month high of $1,895.81 earlier in the session. U.S. gold futures were up 1.9% at $1,894.
