Market Roundup
•US Challenger Job Cuts (YoY) 11.4% ,26.8% previous
•US 8-Week Bill Auction 4.240%, 4.240% previous
•US Atlanta Fed GDPNow (Q4) 2.7% ,2.7%forecast, 2.7% previous
Looking Ahead Economic Data (GMT)
• 05:00 Japan Coincident Indicator (MoM) (Nov) 2.8% previous
•05:00 Japan Leading Index (MoM) (Nov) 0.2% previous
•05:00 Japan Leading Index 107.2forecast, 109.1 previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro eased on Thursday as single currency weakened on concerns over tariffs under the incoming Trump administration. Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported on Wednesday, citing sources familiar with the matter.Trump will take office on Jan. 20 and his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation, is likely to perform well. The dollar index , which measures the greenback against a basket of currencies, rose 0.12% to 109.15, with the euro down 0.16% at $1.0301. Immediate resistance can be seen at 1.0370(50%fib), an upside break can trigger rise towards 1.0420(61.8%fib).On the downside, immediate support is seen at 1.0313(38.2%fib), a break below could take the pair towards 1.0249(23.6%fib).
GBP/USD: The pound weakened to hit fourteen month low against the dollar on Thursday as shifting tariff threats and a hawkish Fed statement boosted the greenback. The recent dollar and U.S. Treasury yield surge comes amid signs of U.S. economic and inflation resilience, leading markets to reduce expectations for Federal Reserve rate cuts this year. Minutes from the Fed's December policy meeting, released on Wednesday, showed concerns that President-elect Donald Trump's proposed tariffs and immigration policies could prolong the battle against inflation. Sterling weakened 0.46% to $1.2306, on track for a third straight session of declines after hitting its lowest level since Nov. 13, 2023. Immediate resistance can be seen at 1.2413(38.2%fib), an upside break can trigger rise towards 1.2512(50%fib).On the downside, immediate support is seen at 1.2270(23.6%fib), a break below could take the pair towards 1.2229(Lower BB).
USD/CAD: The Canadian dollar weakened for a third consecutive day on Thursday as investors scrutinized the decision to suspend Canada’s parliament amid economic challenges and awaited domestic jobs data. Prime Minister Justin Trudeau announced plans to step down in the coming months, with parliament prorogued until March 24. December employment data, due Friday, is forecast to show an increase of 25,000 jobs and a slight rise in the unemployment rate to 6.9% from 6.8% in November. The loonie was trading 0.1% lower at 1.4390 per U.S. dollar, after moving in a range of 1.4366 to 1.4404. Immediate resistance can be seen at 1.4458 (23.6%fib), an upside break can trigger rise towards 1.4489(Higher BB).On the downside, immediate support is seen at 1.4364(38.2%fib), a break below could take the pair towards 1.4300(50%fib).
USD/JPY: The U.S. dollar edged lower against the yen on Thursday as safe-haven demand for the Japanese currency increased amid concerns over Trump’s policies. CNN reported that Trump is considering declaring a national economic emergency to justify broad tariffs on allies and adversaries. With Trump set to take office on Jan. 20, these tariffs could spark trade wars and inflation, potentially boosting gold as a hedge. Meanwhile, Japan’s inflation-adjusted real wages fell for the fourth straight month in November, weighed down by rising prices despite base pay growing at its fastest pace in over three decades, government data showed. Immediate resistance can be seen at 158.80 (23.6%fib) an upside break can trigger rise towards 159.00(Psychological level). On the downside, immediate support is seen at 157.48(38.2%fib) a break below could take the pair towards 156.18 (50%fib).
Equities Recap
European markets closed higher on Thursday, fueled by gains in the healthcare and mining sectors, despite ongoing uncertainties surrounding monetary policy and U.S. tariff plans, which kept bond markets on edge.
UK's benchmark FTSE 100 closed down by 0.30 percent, Germany's Dax ended down by 1.56 percent, France’s CAC finished the day down by 2.24percent.
US stock market is closed due to observe National Day of mourning for Jimmy Carter
Commodities Recap
Gold prices climbed to a near four-week high on Thursday, driven by safe-haven demand as investors assessed the potential impact of U.S. President-elect Donald Trump's policies on the economy and inflation.
Spot gold was up 0.3% at $2,670.16 per ounce, as of 10:55 a.m. ET (1555 GMT). U.S. gold futures rose 0.6% to $2,689.50.
Oil prices surged over 1% on Thursday as cold weather in parts of the United States and Europe heightened winter fuel demand.
Brent crude futures settled up 76 cents, or 1%, at $76.92 a barrel. U.S. West Texas Intermediate crude futures settled up 60 cents, or 0.82%, to $73.92.
