Market Roundup
• Canada Foreign Securities Purchases (Oct) 46.62B, 21.84B forecast, 31.32B previous
• Canada Foreign Securities Purchases by Canadians (Oct) -11.580B, 21.620B previous
• US Crude Oil Inventories -1.274M, -2.400M forecast, -1.812M previous
• US Cushing Crude Oil Inventories -0.742M, 0.308M previous
• US Heating Oil Stockpiles 0.267M, 0.442M previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Foreign Bonds Buying 452.9B previous
•23:50 Japan Foreign Investments in Japanese Stocks 96.8B previous
•00:00 Australia MI Inflation Expectations 4.5% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro initially dipped but recovered ground against the dollar on Wednesday as investors positioned ahead of next week’s European Central Bank rate decision. The ECB is widely expected to leave interest rates unchanged, with euro zone inflation broadly in line with the central bank’s 2% medium-term target. With policy expectations largely priced in, markets are focused on President Christine Lagarde’s press conference for clues on the ECB’s policy direction next year. Meanwhile, German business morale unexpectedly deteriorated in December, a survey showed, underscoring ongoing growth challenges in Europe’s largest economy. The Ifo institute said its business climate index fell to 87.6 this month from a slightly downwardly revised 88.0 in November. Analysts polled by Reuters had forecast a slight increase to 88.2. Immediate resistance can be seen at 1.1737(38.2%fib), an upside break can trigger rise towards 1.1811(23.6%fib).On the downside, immediate support is seen at 1.1687(50%fib), a break below could take the pair towards 1.1637(61.8%fib).
GBP/USD: Sterling initially dipped but recovered ground as investors digested UK inflation data and awaited the Bank of England’s interest rate decision. British inflation fell more sharply than expected to 3.2% in November from 3.6% in October, marking its lowest level since March and boosting expectations of a Bank of England rate cut on Thursday. The surprise decline, driven by lower food prices and Black Friday discounting, pushed sterling lower and raised the likelihood of additional rate cuts in 2026.Markets are pricing in a more than 90% probability that the Bank of England will cut interest rates by 25 basis points to 3.75% on Thursday. Last month, the Bank of England’s Monetary Policy Committee voted 5–4 to keep interest rates unchanged, and economists now expect any December rate cut to pass by a similarly narrow 5–4 margin. Immediate resistance can be seen at 1.3450(23.6%fib), an upside break can trigger rise towards 1.3480(Higher BB).On the downside, immediate support is seen at 1.3369(38.2%fib), a break below could take the pair towards 1.3304(50%fib).
USD/CAD: The Canadian dollar dipped against its U.S. counterpart on Monday as dollar firmed ahead of US inflation reading due on Thursday. Traders have been struggling to assess delayed data as it shows a less clear picture of the U.S. economy after a 43-day federal government shutdown.. Federal Reserve Governor Christopher Waller said on Wednesday the U.S. central bank still has room to cut interest rates amid rising job market weakness.
That was in contrast to commentary by Atlanta Federal Reserve President Raphael Bostic, who said on Tuesday that he did not think that the Fed's decision to cut rates last week was warranted, and that he had penciled in no further reductions in borrowing costs for 2026, given his outlook that economic growth will rebound to around 2.5% and price pressures will remain elevated., after moving in a range of 1.3956 to 1.3991. Immediate resistance can be seen at 1.3616 (50%fib), an upside break can trigger rise towards 1.3667(61.8%fib).On the downside, immediate support is seen at 1.3573(38.2%fib), a break below could take the pair towards 1.3511 (23.6%fib).
USD/JPY: The U.S. dollar firmed on Wednesday as traders waited for U.S. inflation data for clues on the Federal Reserve's next move. U.S. consumer price index data due on Thursday will provide more clues on the Fed's next move, after soft employment data earlier this week left markets and analysts unsure if the report had changed the policy outlook much. The Fed cut rates as expected last week but signalled borrowing costs are unlikely to drop further in the near term, projecting just one more rate cut in 2026. But markets are pricing in two rate cuts next year, although a January move is unlikely. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.2% to 98.41.Against the Japanese yen . The dollar strengthened 0.67% to 155.74 .Immediate resistance can be seen at 155.80(38.2%fib) an upside break can trigger rise towards 156. 93 (Higher BB) .On the downside, immediate support is seen at 154.70 (Daily low) a break below could take the pair towards 154.41 (Lower BB).
Equities Recap
European shares were little changed on Wednesday, as losses in technology stocks were offset by strong gains in basic resources amid lingering concerns over lofty, AI-driven tech valuations.
UK's benchmark FTSE 100 closed up by 0.92percent, Germany's Dax ended down by 0.48 percent, France’s CAC finished the day down by 0.25 percent.
Wall Street’s main indexes closed lower on Wednesday, with the S&P 500 and tech-heavy Nasdaq sliding to three-week lows as persistent concerns over the artificial intelligence trade weighed on technology stocks.
Dow Jones closed down by 0.47% percent, S&P 500 closed down by 1.16% percent, Nasdaq settled down by 1.81% percent.
Commodities Recap
Oil prices settled higher after President Donald Trump ordered a “blockade” of all sanctioned oil tankers entering and leaving Venezuela, as Washington stepped up pressure on Nicolás Maduro’s government by targeting its main source of revenue.
U.S. crude settled up 1.21%, or 67 cents, at $55.94 a barrel and Brent settled at $59.68 per barrel, up 1.29%, or 76 cents, on the day.
Spot gold gained 0.7% to $4,334.01 an ounce by 01:56 p.m ET (18:56 GMT), after rising over 1% earlier in the day. U.S. gold futures settled 1% higher at $4,373.9.
