Market Roundup
• US Pending Home Sales (MoM) (Nov): 3.3%, 1.0% forecast, 2.4% previous.
• US Pending Home Sales Index (Nov): 79.2, 76.7 previous.
• US Dallas Fed Manufacturing Business Index (Dec): -10.9, -10.4 previous.
• US 3-Month Bill Auction: 3.570%, 3.560% previous.
• US 6-Month Bill Auction: 3.500%, 3.485% previous.
• US Natural Gas Storage: -166B, -169B forecast, -167B previous.
Looking Ahead Economic Data (GMT)
• No Data Ahead
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro eased slightly on Monday as attention shifted to the Fed’s year-end meeting. Investor focus on the holiday-curtailed week will be on minutes of the Fed's last meeting due on Tuesday. The U.S. central bank cut rates earlier this month and projected just one more cut for next year while traders have priced in at least two more. The prospect of the Fed cutting rates next year has kept the dollar under pressure, while the spectre of a new Fed Chair that may be dovish and willing to lower rates looms large. The dollar index , which measures the greenback against six rivals, was 0.08% lower at 97.953, on track for a 9.7% drop for the year, its steepest since 2017. Immediate resistance can be seen at 1.1793(23.6%fib), an upside break can trigger rise towards 1.1828(Higher BB).On the downside, immediate support is seen at 1.1731(38.2%fib), a break below could take the pair towards 1.1680(50%fib).
GBP/USD: The pound held steady against the dollar in thin holiday trading on Monday, with few scheduled events to drive the currency until the New Year. Trading has been subdued in Britain over the Christmas period and remains light in the run-up to the year-end holiday.As a result, sterling continues to be largely influenced by the Bank of England’s meeting earlier in December. The BoE cut interest rates following a narrow vote among policymakers but signaled that the already gradual pace of easing could slow further.Manufacturing activity data due on Friday will provide the next indication of the health of Britain’s economy, while key inflation and employment figures are not expected until well into January. Immediate resistance can be seen at 1.3499(23.6%fib), an upside break can trigger rise towards 1.3529(Higher BB).On the downside, immediate support is seen at 1.3405 (38.2%fib), a break below could take the pair towards 1.3338(50%fib).
USD/CAD: The Canadian dollar weakened against the U.S. dollar on Monday as falling metal prices weighed on the commodity-linked currency. Precious metals retreated sharply, with silver and platinum pulling back from record highs earlier in the session as investors locked in profits after recent rallies.Spot gold fell 4.5% to $4,330.79 an ounce after touching a record $4,549.71 on Friday. Platinum slid 14.5% to $2,096.53 per ounce after reaching an all-time high of $2,478.50 earlier in the session, while silver dropped 9.5% to $71.66 an ounce, retreating from a record peak of $83.62.Meanwhile, oil prices jumped as investors weighed hopes of progress from talks between the U.S. and Ukrainian presidents on a potential deal to end the Russia–Ukraine war against the risk of oil supply disruptions in the Middle East. Immediate resistance can be seen at 1.3706 (Daily high), an upside break can trigger rise towards 1.3748 (38.2%fib).On the downside, immediate support is seen at 1.3646(23.6%fib), a break below could take the pair towards 1.3616 (Lower BB).
USD/JPY: The U.S. dollar edged lower on Monday as investors weighed the timing of further interest rate hikes in Japan and the risk of market intervention amid thin end-of-year trading.A summary of opinions from the Bank of Japan’s December policy meeting, released on Monday, showed policymakers debating the need to continue raising rates. Many board members saw scope for further increases, noting that rates remain deeply negative in inflation-adjusted terms.Some policymakers warned that Japan’s ultra-low interest rates are weakening the yen and stoking inflation, signaling that foreign exchange movements will play a key role in future rate-hike discussions. The summary also highlighted growing confidence among board members that Japan’s economy can withstand higher U.S. tariffs, enabling companies to continue raising wages next year. Immediate resistance can be seen at 157.80(23.6%fib) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at 155.91 (SMA 20) a break below could take the pair towards 155.61 (38.2%fib).
Equities Recap
European stocks kicked off post-holiday trading with a record close on Monday, supported by gains in technology and consumer shares, though overall advances were limited as defence and financial stocks slipped.
UK's benchmark FTSE 100 closed down by 0.04 percent, Germany's Dax ended up by 0.05 percent, France’s CAC finished the day up by 0.10 percent.
Wall Street’s main indexes ended lower on Monday, opening the final week of the year on a weaker note as heavyweight technology shares retreated after last week’s rally that pushed the S&P 500 to record highs.
Dow Jones closed down by 0.51 % percent, S&P 500 closed down by 0.35% percent, Nasdaq settled down by 0.52% percent.
Commodities Recap
Precious metals fell sharply on Monday, with silver and platinum retreating from record highs earlier in the session as investors took profits following recent rallies.
Spot gold fell 4.5% to $4,330.79 an ounce by 1:51 p.m. ET (1851 GMT) after hitting a record $4,549.71 on Friday, while U.S. gold futures for February delivery settled 4.6% lower at $4,343.60.
Oil prices settled more than $1 a barrel higher on Monday after Russia accused Ukraine of attacking President Vladimir Putin’s residence, while traders also braced for potential supply disruptions in the Middle East amid rising tensions in Yemen.
Brent crude futures rose $1.30, or 2.1%, to settle at $61.94 a barrel. U.S. West Texas Intermediate crude gained $1.34, or 2.4%, to close at $58.08.
