Market Roundup
• Brexit trade deal buoys sterling, European stocks
• Investors wind down for Christmas break in bullish mood
• Canada Nov Building Permits (MoM) 12.9%,3.0% forecast, -14.6% previous
• US 4-Week Bill Auction 0.080%, 0.075% previous
• US 8-Week Bill Auction 0.090%, 0.080% previous
Looking Ahead Economic Data(GMT)
• 23:50 Japan Dec CPI Tokyo Ex Food and Energy (MoM) previous
• 23:50 Japan Dec Tokyo Core CPI (YoY) -0.8% forecast , -0.7% previous
• 23:50 Japan Nov Unemployment Rate 3.1% forecast , 3.1% previous
• 23:50 Japan Nov Jobs/applications ratio 1.04 forecast, 1.04 previous
• 23:50 Japan Nov Retail Sales (YoY) 1.7% forecast, 11.9% previous
•10:30 Japan BoJ Governor Kuroda Speaks -4.9%,-8.3% previous
•10:30 Japan Nov Construction Orders (YoY) -0.1% previous
Looking Ahead - Economic events and other releases (GMT)
•10:30 Japan BoJ Governor Kuroda Speaks
Currency Summaries
EUR/USD: The euro edged higher against dollar on Thursday as Britain clinched a deal to leave the European Union, as investors squared positions for year-end. Investors also focused on when more U.S. stimulus will be passed, after President Donald Trump threatened on Tuesday not to sign an $892 billion coronavirus bill, saying that sums to be paid to individuals were too small. U.S. lawmakers on Thursday blocked attempts to increase direct payments to Americans included in the bill from $600 to $2,000 per person. Immediate resistance can be seen at 1.2212(5DMA), an upside break can trigger rise towards 1.2274(23.6%fib).On the downside, immediate support is seen at 1.2144 (38.2%fib), a break below could take the pair towards 1.2114(20DMA).
GBP/USD: The British pound rose on Thursday as Britain and the European Union clinched a free trade deal. Britain hammered out the final details of a narrow agreement with the EU just seven days before it exits the trading bloc.Sterling momentarily extended its climb against the dollar on the news, rising as much as 0.94%, but then pared gains. The pound’s 5% rally since early November meant that much of the Brexit relief had already been priced into the currency. Britain also faces challenges from a new variant of COVID-19. Immediate resistance can be seen at 1.3615 (38.2%fib), an upside break can trigger rise towards 1.3707 (23.6%fib).On the downside, immediate support is seen at 1.3530 (50%fib), a break below could take the pair towards 1.3480 (5DMA).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday as Britain clinched a narrow Brexit trade deal with the European Union and domestic data showed a jump in the value of building permits. The price of oil , one of Canada's major exports, was down 0.2% at $48.03 a barrel, giving back some of Wednesday's rally. The loonie was up 0.2% at 1.2827 to the greenback, in thin holiday trading. It traded in a range of 1.2819 to 1.2853, having recovered from a near three-week low on Monday of 1.2955. Immediate resistance can be seen at 1.2856 (50%fib), an upside break can trigger rise towards 1.1910 (38.2%fib).On the downside, immediate support is seen at 1.2790 (61.8%fib), a break below could take the pair towards 1.2700 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as investors maintained hopes of economic recovery, despite blocked attempts in Congress to alter a $2.3 trillion coronavirus aid and government spending package. President Donald Trump had previously stated that he might not sign the bill without significant changes. Optimism about a full-scale roll-out of COVID-19 vaccines next year has kept dollar buoyed against yen despite the delays in further stimulus. Strong resistance can be seen at 103.66 (50%fib), an upside break can trigger rise towards 103.86 (61.8%fib).On the downside, immediate support is seen at 103.46 (38.2%fib), a break below could take the pair towards 103.21 (23.6%fib).
Equities Recap
European shares rose for a third straight session on Thursday with a Brexit trade deal finally in sight just a week before Britain cuts its ties with the European Union.
UK's benchmark FTSE 100 closed up by 0.10 percent, Germany's Dax ended up by 1.26 percent, France’s CAC finished the day down by 0.10 percent.
U.S. stock index futures rose on Thursday ahead of a shortened trading session on hopes of a gradual economic rebound, while Alibaba slumped after China launched an antitrust investigation into the e-commerce giant.
Dow Jones closed up by 0.23% percent, S&P 500 closed up by 0.35% percent, Nasdaq settled up by 0.26% percent.
Treasuries Recap
U.S. Treasury yields dropped in light trading on Thursday even as Britain clinched a deal to leave the European Union, as investors squared positions for year-end.
Benchmark 10-year yields fell three basis points to 0.926%, after reaching a two-week high of 0.973% on Wednesday.
Commodities Recap
Oil prices inched higher on Thursday, helped by late-day buying in a low-volume session to close out the week.
U.S West Texas Intermediate (WTI) crude settled up 11 cents to $48.23 a barrel, while Brent crude futures settled 9 cents higher at $51.29. Volumes were light on the last trading day before the Christmas holiday.
Gold prices edged up on Thursday as the dollar eased and investors bet on further U.S. stimulus though President Donald Trump threatened to veto a long-awaited pandemic relief bill.
Spot gold rose 0.2% to $1,875.20 per ounce by 0722 GMT, having risen as much as 1% in the previous session. U.S. gold futures were up by 0.1% at $1,880.00.
