America’s Roundup: Dollar edges lower against yen ahead of US inflation data, Wall Street closes lower, Gold eases, Oil drops as China developer downgrades add to fears over Omicron hit-December 10th,2021

Market Roundup

• US Initial Jobless Claims 184K  ,215K forecast, 222K previous

• US Jobless Claims 4-Week Avg  218.75K,238.75K previous

• US Continuing Jobless Claims 1,992K,1,900K forecast,1,956K previous

• US Wholesale Inventories (MoM) 2.3%,2.2% forecast, 2.2% previous

• US Oct Wholesale Trade Sales (MoM) 2.2%, 1.0% forecast,  1.1% previous

• US Natural Gas Storage -59B   ,-54B, -59B previous

Looking Ahead - Economic Data (GMT) 

•No data ahead

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro dipped against dollar on Thursday as worries about the new coronavirus variant weighed on sentiment, while investors focus shifted to the release of U.S. inflation data on Friday and next week’s central bank policy meetings. The euro was also weighed down by the ECB's anxiety regarding asset purchases after the PEPP programme's intended March conclusion and desire for flexibility in the face of COVID uncertainties.The euro was 0.03 lower at $1.1288 , still close to one-week high touched in the previous day. Immediate resistance can be seen at 1.1370(38.2% fib), an upside break can trigger rise towards 1.1390 (30 DMA).On the downside, immediate support is seen at 1.1289 (38.2%fib), a break below could take the pair towards 1.1190(23.6% fib).

GBP/USD: Sterling was little changed against the dollar on Thursday as the rapid Omicron expansion rate raised concerns about increased restrictions , offsetting some the relief that helped risk markets recover from the initial scare over the COVID-19 variant ..The spread of the new variant and subsequent imposition of those restrictions lowered expectations that the Bank of England will raise interest rates in the near term, which had bolstered the pound against the dollar in recent months. Prior to Wednesday's announcement of the new curbs, market watchers had seen the central bank lifting rates as soon as next week. Immediate resistance can be seen at 1.3249 (38.2%fib), an upside break can trigger rise towards 1.3311 (61.8%fib).On the downside, immediate support is seen at 1.3185(38.2%fib), a break below could take the pair towards 1.3110 (23.6%fib).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as investors assessed increased restrictions in parts of the world to contain the spread of the new Omicron variant and ahead of a speech by a senior Bank of Canada official. The price of oil, one of Canada's major exports, fell 1.3% to $71.40 a barrel as British Prime Minister Boris Johnson imposed tougher COVID-19 restrictions in England. The loonie was trading 0.3% lower at 1.2714 to the greenback, after trading in a range of 1.2650 to 1.2698. Immediate resistance can be seen at 1.2731(14 DMA), an upside break can trigger rise towards 1.2751(23.6%fib).On the downside, immediate support is seen at 1.2679(38.2%fib), a break below could take the pair towards 1.2628 (50%fib).

USD/JPY: The dollar dipped against the Japanese yen on Thursday as increased restrictions in parts of the world to contain the spread of COVID-19, including the new Omicron variant, tempered investors' appetite for riskier currencies. Investors' focus now turns to Friday's U.S. Consumer Price Index (CPI) report, which could influence the Fed's policy decision in its Dec. 14-15 policy meeting. CPI inflation data due Friday could also have an effect on the Fed's decision. Strong resistance can be seen at 113.94 (23.6%fib), an upside break can trigger rise towards 114.52 (Nov 19th high).On the downside, immediate support is seen at 113.32 (38.2%fib), a break below could take the pair towards 112.83 (50%fib).

Equities Recap

European shares ended lower on Thursday, pressured by COVID-19 worries with highly valued technology stocks continuing their slide while falling oil prices weighed on energy companies.

UK's benchmark FTSE 100 closed down by  0.22 percent, Germany's Dax ended down by 0.30  percent, France’s CAC finished the day down by 0.09 percent.                

 Wall Street closed lower on Thursday as investors banked some profits after three straight days of gains and turned their focus toward upcoming inflation data and how it might influence the Federal Reserve’s meeting next week.

Dow Jones closed down by 0.00 percent, S&P 500 closed down by 0.72  percent, Nasdaq settled down   by 1.79% percent.

Treasuries Recap

U.S. Treasury yields retreated on Thursday, reversing course following three straight days of gains for the 10-year yield, after data on the labor market and ahead of a key reading on inflation.

The yield on 10-year Treasury notes was down 2.2 basis points to 1.487%.

Commodities Recap

Gold slipped on Thursday as the dollar firmed and data showed a big drop in U.S. jobless claims ahead of an inflation report that could influence the Federal Reserve's monetary strategy.

Spot gold was down 0.3% at $1,776.56 per ounce by 13:50 p.m. ET (1850 GMT), while U.S. gold futures settled down 0.5% at $1,776.70.

Oil prices settled lower on Thursday (Dec 9) on fears about the economic outlook in the world's biggest oil importer following ratings downgrades to two Chinese property developers, and after some governments took measures to fight the Omicron variant of the coronavirus.

Brent crude futures settled down US$1.40, or 1.9 per cent, to US$74.42 a barrel, backing off a session high of US$76.70.

US West Texas Intermediate (WTI) crude futures were down US$1.42, or 2 per cent, at US$70.94 after hitting a peak of US$73.34.