Market Roundup
•Italian Dec Manufacturing PMI 52.8, 53.7 forecast, 51.5 previous
•French Dec Manufacturing PMI 51.1, 51.1 forecast, 49.6 previous
•German Dec Manufacturing PMI 58.3, 58.6 forecast, 58.6 previous
•Greek Dec Manufacturing PMI 46.9, 42.3 previous
•EU Dec Manufacturing PMI 55.2, 55.5 forecast, 55.5 previous
•UK Dec Manufacturing PMI 57.5,57.3 forecast, 55.6 previous
•UK Nov Mortgage Lending 5.68B, 4.35B forecast, 4.29B previous
•UK Nov Mortgage Approvals 104.97K, 82.50K forecast, 97.53K previous
Looking Ahead – Economic Data (GMT)
•14:00 French 12-Month BTF Auction -0.692% previous
•14:00 French 3-Month BTF Auction -0.743% previous
•14:00 French 6-Month BTF Auction -0.719% previous
•14:30 Canada Dec Manufacturing PMI 55.8 previous
•14:45 US Dec Manufacturing PMI 56.5 previous
•14:45 US Nov Construction Spending (MoM) 1.0% forecast, 1.3% previous
•16:30 US 3-Month Bill Auction 0.095% previous
•16:30 US 6-Month Bill Auction 0.100% previous
•18:00 Brazil Dec Dec Trade Balance 0.20B forecast, 3.73B previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 US FOMC Member Bostic Speaks
•15:00 US Chicago Fed President Evans Speaks
Fx Beat
EUR/USD: The euro strengthened against dollar on Monday as hopes the rollout of vaccines would ultimately lift a global economy boosted euro. With the lag between a full vaccine rollout and a global economic recovery, investors will count on central banks to keep money cheap. On the data front, German factories churned out more goods in December despite a stricter lockdown to head off a spike in coronavirus deaths in Europe’s largest economy, a survey showed on Monday.IHS Markit’s final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the German economy, rose to 58.3 from 57.8 the previous month. Immediate resistance can be seen at 1.2303 (23.6%fib), an upside break can trigger rise towards 1.2325 (Higher BB).On the downside, immediate support is seen at 1.2210 (38.2%fib), a break below could take the pair towards 1.2177 (21DMA).
GBP/USD: Sterling strengthened against dollar on Monday as upbeat manufacturing data supported sterling across the board. A closely watched gauge of growth in British manufacturing activity rose to its highest level in three years last month, as factories rushed to complete work before the end of the post-Brexit transition period on Dec. 31.The IHS Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) for December rose to 57.5 from November’s 55.6, its highest since November 2017 and slightly above an initial flash estimate of 57.3. Immediate resistance can be seen at 1.3700 (100 DMA), an upside break can trigger rise towards 1.3759 (Higher BB).On the downside, immediate support is seen at 1.3640 (38.2%fib), a break below could take the pair towards 1.3597 (Psychological level).
USD/CHF: The dollar declined against the Swiss franc on Monday as investors were focused on a runoff election in the U.S. state of Georgia on Tuesday which will determine control of the Senate. Minutes of the Federal Reserve's December meeting due on Wednesday should offer more detail on discussions about making their forward policy guidance more explicit and the chance of a further increase in asset buying this year. At 12:30 GMT, the dollar was 0.61 percent lower versus the Swiss franc at 0.8801 . Immediate resistance can be seen at 0.8843(38.2%fib), an upside break can trigger rise towards 0.8857 (11DMA).On the downside, immediate support is seen at 0.8785 (23.6% fib), a break below could take the pair towards 0.8700(Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Monday as reports of a possible tightening in coronavirus emergency rules for Tokyo boosted safe-haven yen. The Japanese government said on Monday it was considering declaring a state of emergency in and around Tokyo as coronavirus cases climb, casting fresh doubt over whether it can push ahead with the summer Olympics and keep economic damage to a minimum. Tokyo and the three surrounding prefectures, which have requested an emergency declaration, asked residents to refrain from non-essential, non-urgent outings after 8 p.m. from Friday . At (GMT 12:30), the yen was last upn 0.35 % at 102.89. Strong resistance can be seen at 102.97 (38.2%fib), an upside break can trigger rise towards 103.10 (50%fib).On the downside, immediate support is seen at 102.79(23.6%fib), a break below could take the pair towards 102.61 (Lower BB).
Equities Recap
European shares rallied in the first trading session of the year as a landmark Brexit trade deal and coronavirus vaccine drives across the continent bolstered expectations of a strong economic rebound.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.23 percent, Germany's Dax was up by 2.70 percent, France’s CAC finished was up by 1.65 percent.
Commodities Recap
Gold began the new year by climbing nearly 2% on Monday, closing in on a near two-month peak, as the dollar slid to 2018 lows and prospects of tougher restrictions to combat a new variant of the coronavirus kept safe-haven bullion in demand.
Spot gold was up 1.7% to $1,930.65 per ounce at 1023 GMT, having hit its highest since Nov. 9 at $1,934.81. U.S. gold futures climbed 2.2% to $1,936.30.
Oil prices touched multi-month highs on Monday on expectations OPEC and allied producers may cap output at current levels in February and on hopes that vaccines may curb the spread of the novel coronavirus and drive an economic rebound.
By 1120 GMT, March Brent crude futures were at $52.52 a barrel, up 72 cents, or 1.4%, and February WTI crude futures rose 42 cents, or 0.9%, to $48.94 a barrel.
