Market Roundup
• Swiss Nov Unemployment Rate n.s.a 2.0%,2.0% forecast ,1.9% previous
• Swiss Nov Unemployment Rate s.a 2.0%,2.1% forecast ,2.1% previous
•Finnish Oct Trade Balance -0.92B,-0.33B previous
•UK Nov Halifax House Price Index (MoM) -2.3%,-0.2% forecast ,-0.4% previous
•German Oct Industrial Production (MoM) -0.1% -0.6% forecast ,0.6% previous
•UK Halifax House Price Index (YoY) 4.7% , 8.3% previous
•French Nov Reserve Assets Total 238,632.0M, 238.3M previous
•French Oct Trade Balance -12.2B,-16.0B forecast ,-17.5B previous
•French Oct Imports 63.6B, 69.5B previous
•French Oct Exports 51.4B, 52.2B previous
•EU GDP (QoQ) (Q3) 0.3%, 0.2% forecast , 0.2% previous
•EU Greek GDP (YoY) (Q3)2.8% ,7.7% previous
•EU Employment Overall (Q3) 164,499.5K, 164,475.1K previous
• EU GDP (YoY) (Q3) 2.3% 2.1% forecast ,2.1% previous
• EU Employment Change (YoY) (Q3) 1.8%,1.7% forecast ,2.7% previous
Looking Ahead - Economic Data (GMT )
•13:30 US Nonfarm Productivity (QoQ) (Q3) 0.6% forecast , 0.3% previous
•13:30 US Unit Labor Costs (QoQ) (Q3) 3.1% forecast , 3.5% previous
•15:30 US Crude Oil Inventories -3.305M forecast , -12.580M previous
•15:30 US Gasoline Inventories 2.707M forecast , 2.769M previous
Looking Ahead - Events, Other Releases (GMT)
•14:30 EU ECB's Panetta Speaks
•15:00 Canada BoC Interest Rate Decision 4.25% forecast , 3.75% previous
•15:00 Canada BoC Rate Statement
Fxbeat
EUR/USD: The euro gained against dollar on Wednesday after data showed Euro zone gross domestic product (GDP) grew by slightly . Euro zone gross domestic product (GDP) grew by slightly more than initially estimated, data from the European statistics agency Eurostat showed on Wednesday, with household spending and business investment propping up the economy.Eurostat said GDP growth in the third quarter was 0.3% in the 19-country euro area in the July-September period from the previous quarter and 2.3% year-on-year, above its flash estimates of 0.2% and 2.1% published in mid-November.. Immediate resistance can be seen at 1.0559(23.6%fib), an upside break can trigger rise towards 1.0595(Dec 5th high).On the downside, immediate support is seen at 1.0442(9DMA), a break below could take the pair towards 1.0401(38.2%fib).
GBP/USD: The pound edged higher against dollar on Wednesday but gains were limited on growing concern of recession in the U.S. and elsewhere. Prime Minister Rishi Sunak, in power for just over a month, faces a raft of problems, including a possibly lengthy recession in the run-up to an election that opinion polls suggest the Conservatives will lose. Investors initially cheered the appointment of Sunak and his new finance minister, Jeremy Hunt, as the two brought much-needed stability to UK markets. But that optimism is fading, which could ultimately spell more weakness for the pound. Immediate resistance can be seen at 1.2275( 23.6%fib), an upside break can trigger rise towards 1.2338(Dec 5th high).On the downside, immediate support is seen at 1.2119(5DMA), a break below could take the pair towards 1.2000(Psychological leevl).
USD/CHF: The dollar was little changed against the Swiss franc on Wednesday as investors looked ahead to next week’s U.S. Federal Reserve policy meeting for clues on the pace of rate hikes. The final Fed meeting of 2022 scheduled on Dec. 13-14, traders are also looking towards the November Consumer Price Index (CPI) figures for the U.S. due on Dec. 13. Fed fund futures are now pricing in a 91% chance of 50-basis point (bps) rate increase in December. Immediate resistance can be seen at 0.9435(5DMA), an upside break can trigger rise towards 0.9456(38.2%fib).On the downside, immediate support is seen at 0.9378(23.6%fib), a break below could take the pair towards 0.9338(Dec 5th low).
USD/JPY: The dollar gained against Japanese yen on Wednesday as greenback inched higher amid warnings of an impending recession. Comments by top bankers from JPMorgan Chase & Co, Bank of America and Goldman Sachs further aided the greenback, after they said overnight that the banks are bracing for a worsening economy next year. The dollar index was last trading 0.22% higher at 105.78, which has been on the front foot since the release of upbeat U.S. services and factory data at the start of the week. Strong resistance can be seen at 137.90(38.2%fib), an upside break can trigger rise towards 138.42(14DMA).On the downside, immediate support is seen at 135.97(38.2%fib), a break below could take the pair towards 133.94(23.6%fib).
Equities Recap
European stock markets traded lower on Wednesday, as investors digested the further easing of COVID restrictions in China as well as regional recessionary concerns.
At (GMT 11:38),UK's benchmark FTSE 100 was last trading down at 0.00 percent, Germany's Dax was down by 0. 30 percent, France’s CAC finished was down by 0. 34 percent.
Commodities Recap
Gold prices were listless on Wednesday as investors eyed next week’s U.S. Federal Reserve meeting for confirmation on its interest rate hike trajectory, with a firmer dollar also subduing any gains in bullion.
Spot gold was little changed at $1,771.89 per ounce by 0951 GMT. U.S. gold futures ticked 0.1% higher to $1,784.30.
Oil weakened on Wednesday, with Brent crude falling close to its lowest this year, pressured by concern about recession and easing fears that a Western cap on Russian oil prices would significantly curb supply.
Brent crude fell $1.05, or 1.3%, to $78.30 a barrel by 1020 GMT. It touched $77.74 earlier, the lowest since Jan. 3. U.S. crude was down $1.24 or 1.7% to $73.01 and touched $72.25, the lowest since late December.
