Market Roundup
•US job openings rise in November, hiring slows
•US services sector activity increases in December
•Bitcoin drops more than 5% after hitting three-week high earlier
•US Exports (Nov) 273.40B, 265.70B previous
•US Imports (Nov) 351.60B, 339.60B previous
•US Trade Balance (Nov) -78.20B, -78.30B forecast, -73.60B previous
•Canada Exports (Nov) 66.11B, 64.68B previous
•Canada Imports (Nov) 66.43B, 65.23B previous
•Canada Trade Balance (Nov) -0.32B, -0.80B forecast, -0.54B previous
•US ISM Non-Manufacturing Business Activity (Dec) 58.2, 53.7 previous
•US ISM Non-Manufacturing Employment (Dec) 51.4, 51.4 forecast, 51.5 previous
•US ISM Non-Manufacturing New Orders (Dec) 54.2, 54.2 forecast, 53.7 previous
•US ISM Non-Manufacturing PMI (Dec) 54.1, 53.5 forecast, 52.1 previous
•US ISM Non-Manufacturing Prices (Dec) 64.4, 57.5 forecast, 58.2 previous
•US JOLTS Job Openings (Nov) 8.098M, 7.730M forecast, 7.839M previous
•Canada Ivey PMI n.s.a (Dec) 44.3, 49.7 previous
•Canada Ivey PMI (Dec) 54.7, 55.4, 52.3 previous
Looking Ahead Economic Data(GMT)
• 00:00 New Zealand ANZ Commodity Price Index (MoM) 2.9% previous
•00:30 Australia Weighted Mean CPI (YoY) (Nov) 2.20% forecast, 2.10% previous
•05:00 JPY Household Confidence (Dec) 36.6 forecast, 36.4 previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro fell on Tuesday as the dollar weakened after data showed the resilience of the U.S. economy, suggesting that the Federal Reserve may cut interest rates fewer times this year than previously anticipated. December's services sector activity exceeded expectations, and a measure of prices paid for inputs surged to a nearly two-year high, according to the Institute for Supply Management. Additionally, U.S. job openings unexpectedly rose in November, although a slowdown in hiring pointed to a cooling labor market.Markets are currently pricing in the probability of just one Fed cut in 2025, down from two rate cuts in December, according to the CME FedWatch tool.. Immediate resistance can be seen at 1.0468(50%fib), an upside break can trigger rise towards 1.0551(61.8%fib).On the downside, immediate support is seen at 1.0339(38.2%fib), a break below could take the pair towards 1.0252(23.6%fib).
GBP/USD: The pound weakened on Tuesday as the U.S. dollar strengthened following a report showing an unexpected rise in U.S. job openings, suggesting a lower likelihood of significant rate cuts by the Federal Reserve. Job openings increased by 259,000 to 8.098 million in November, although hiring slowed. Uncertainty surrounding U.S. tariff policies ahead of Trump's January 20 inauguration has raised concerns about potential inflationary pressures, which could restrict the Fed's ability to cut rates. Investors are closely watching Friday's U.S. jobs report, along with Wednesday’s ADP employment data and the minutes from the Fed’s December meeting, for further policy insights. Immediate resistance can be seen at 1.2544(50%fib), an upside break can trigger rise towards 1.2679(61.8%fib).On the downside, immediate support is seen at 1.2469(38.2%fib), a break below could take the pair towards 1.2338(23.6%fib)
USD/CAD: The Canadian dollar slightly dipped against the U.S. dollar on Tuesday as strong U.S. economic data fueled expectations of a slower pace of Federal Reserve rate cuts, although it retained most of the previous day's gains. The price of oil, one of Canada's major exports, was supported by concerns over tighter supply from Russia and Iran. U.S. crude oil futures settled 0.9% higher at $74.25 a barrel. Canada posted a narrower-than-expected trade deficit of C$323 million ($225.6 million) in November as exports rose faster than imports. Separate data showed that the seasonally adjusted Ivey Purchasing Managers Index (PMI) rose to 54.7 from 52.3 in November, reaching its highest level since July. The loonie was trading 0.1% lower at 1.4350 per U.S. dollar, after moving in a range of 1.4298 to 1.4365. Immediate resistance can be seen at 1.4477 (23.6%fib), an upside break can trigger rise towards 1.4535(Higher BB).On the downside, immediate support is seen at 1.4344(50%fib), a break below could take the pair towards 1.4273 (61.8%fib).
USD/JPY: The U.S. dollar strengthened on Tuesday as dollar was boosted by U.S. economic data showing a generally stable jobs market and a still robust services sector suggested that the Federal Reserve will likely slow the pace of its current rate-cutting cycle. Data showed that U.S. job openings unexpectedly increased in November, although hiring slowed during the month. Job openings, a measure of labor demand, rose 259,000 to 8.098 million by the last day of November, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey, or JOLTS report. U.S. services sector activity also accelerated in December, while a surge in a measure of prices paid for inputs to a near two-year high pointed to elevated inflation. Immediate resistance can be seen at 158.66 (23.6%fib) an upside break can trigger rise towards 159.00(Psychological level). On the downside, immediate support is seen at 157.01(38.2%fib) a break below could take the pair towards 155.80 (50%fib).
Equities Recap
European shares closed higher on Tuesday, buoyed by gains in the energy sector, while investors digested a slew of economic data that painted a mixed picture of the region's economic health.
UK's benchmark FTSE 100 closed down by 0.05 percent, Germany's Dax ended up by 0.662 percent, France’s CAC finished the day up by 0.59 percent.
U.S. stocks fell on Tuesday after a series of positive economic data raised fears that a rebound in inflation could hinder the Federal Reserve's ability to ease monetary policy at its current pace.
Dow Jones closed down by 0.42 percent, S&P 500 closed down by 1.10 percent, Nasdaq settled down by 1.88 percent.
Commodities Recap
Oil prices closed higher on Tuesday, boosted by concerns over constrained supply from Russia and Iran due to Western sanctions, as well as expectations of increased demand from China.
Brent crude futures settled at $77.05 a barrel, up 75 cents, or 0.98%. U.S. West Texas Intermediate (WTI) crude finished at $74.25 a barrel, up 69 cents, 0.94%.
Gold prices reversed earlier gains on Tuesday, weighed down by a stronger dollar and rising Treasury yields, as the increase in U.S. job openings pointed to a reduced likelihood of significant rate cuts by the Federal Reserve.
Spot gold was up 0.5% at $2,648.76 per ounce, as of 02:07 p.m. ET (1907 GMT), after rising as much as 1% earlier in the session. U.S. gold futures settled 0.7% higher at $2,665.40.
