Market Roundup
•Possible Brexit deal buoys European markets
•Sterling jumps against dollar
• Russia Central Bank reserves (USD) 593.6B, 587.1B previous
Looking Ahead Economic Data (GMT)
•13:30 Canada Nov Building Permits (MoM) 3.0% forecast, -14.6% previous
•13:30 US Nov Goods Orders Non Defense Ex Air (MoM) 0.8% previous
•13:30 US Durables Excluding Defense (MoM) 0.2% previous
•13:30 US Nov Core Durable Goods Orders (MoM) 0.6% forecast, 1.3% previous
•13:30 US Nov Durable Goods Orders (MoM) 0.7% forecast, 1.3% previous
•16:30 US 4-Week Bill Auction 0.075% previous
•16:30 US 8-Week Bill Auction 0.080% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged against dollar on Thursday as hopes Brexit trade deal and sustained global economic recovery supported euro. Britain and the European Union appeared close to clinching a long-elusive trade agreement on Wednesday, raising hopes that they were now set to avoid a turbulent economic rupture on New Year's Day. The euro climbed 0.04% to $1.2188. 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: Sterling firmed against dollar on Thursday as markets awaited confirmation that Britain and the European Union had finally clinched a deal to govern trade when the Brexit transition ends on Dec. 31.The currency has strengthened some 1.5% versus the dollar. It is now around $1.3580, up 0.7% on the day, having briefly risen past $1.36 and heading towards the 2-1/2 year high of $1.3625 hit last week. 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/CHF: The dollar strengthened against the Swiss franc on Thursday as hopes that a Brexit trade deal could be struck later in the day cheered investors amid concerns over the passage of a much-awaited U.S. pandemic aid bill. After months of wrangling, and amid warnings of no deal, Britain and the European Union were on the cusp of striking a narrow trade agreement, sources in London and Brussels said, swerving away from an acrimonious split. At (GMT 13:30), greenback gained 0.31% versus the Swiss franc to 0.8904. Immediate resistance can be seen at 0.8903(38.2%fib), an upside break can trigger rise towards 0.8927 (23.6%fib).On the downside, immediate support is seen at 0.8888(38.2%fib), a break below could take the pair towards 0.8868 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as risk appetite rose on the expectation of an imminent Brexit trade deal between the UK and the European Union. The Brexit headlines overshadowed President Donald Trump’s threat to veto the U.S. stimulus bill. Trump said the long-awaited stimulus package should be amended to increase the amount in the stimulus checks -- potentially disrupting the bill. 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
Banks put European shares on course for a third straight session of gains on Thursday as a Brexit trade deal seemed almost at hand, with just a week left for Britain’s final exit from the European Union.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading up at 0.00 percent, Germany's Dax was up by 0.77 percent, France’s CAC finished was up by 0.65 percent.
Commodities Recap
Gold prices edged up on Thursday as 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.
Oil prices edged down on Thursday but were holding well above $50 per barrel in light holiday trade as a drop in U.S. stockpiles spurred demand hopes, while hints of an imminent Brexit deal underpinned investors’ risk appetite.
Brent crude futures were down 40 cents, or 0.8%, to $50.80 a barrel at 1100 GMT, while U.S. West Texas Intermediate (WTI) crude was down 36 cents, or 0.75%, to $47.76.
