Market Roundup
•Australia Building Approvals (YoY) (Nov) 6.00%, 13.80% previous
•Australia Building Approvals (MoM) (Nov) -3.6%, -0.9% forecast, 5.2% previous
•Australia Private House Approvals (Nov) -1.7%, -4.0% previous
•UK Halifax House Price Index (MoM) (Dec) -0.2%, 0.8% forecast, 1.2% previous
•UK Halifax House Price Index (YoY) (Dec) 3.3%, 4.7% previous
Looking Ahead Economic Data(GMT)
•07:45 French CPI (MoM) (Dec) 0.3%, -0.1% forecast
•07:45 French CPI (YoY) (Dec) 1.5%, 1.3% forecast
•07:45 French HICP (YoY) (Dec) 1.9%, 1.7% forecast
•07:45 French HICP (MoM) (Dec) 0.4%, -0.1% forecast
•08:30 EU HCOB Italy Construction PMI (MoM) (Dec) 48.5 previous
•08:30 EU HCOB Germany Construction PMI (Dec) 38.0 previous
•08:30 EU HCOB France Construction PMI (MoM) (Dec) 43.7 previous
•08:30 EU HCOB Eurozone Construction PMI (MoM) (Dec) 42.7 previous
•09:00 Italian Monthly Unemployment Rate (Nov) 5.8% forecast, 5.8% previous
•09:00 EU CPI (YoY) (Dec) 2.4% previous
•09:00 EU CPI (MoM) (Dec) 0.5% previous
Looking Ahead Events And other Releases(GMT)
•No Events Ahead
Currency forecast
EUR/USD: The euro steadied on Tuesday as dollar weakened as investors hoped U.S. President-elect Donald Trump would adopt less aggressive tariffs than previously thought when he takes office.Inflation figures from the euro zone later on Tuesday will refine the outlook for more rate cuts from the European Central Bank. Markets are pricing in nearly 100 basis points worth of easing in 2025 for now .The week is filled with data releases particularly from the United States, which will be headlined by the December nonfarm payrolls report on Friday. 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 1.0352(38.2%fib), a break below could take the pair towards 1.0252(23.6%fib).
GBP/USD: The pound gained on Tuesday as the dollar weakened, amid market speculation about Trump’s tariff plans. The Washington Post reported on Monday that Trump’s aides were considering tariffs on all countries, but only for sectors deemed vital to national or economic security. The news initially caused stocks to rally and the dollar to drop, but Trump's denial on his Truth Social platform later reversed some of the dollar’s losses. Sterling last traded at $1.12554, recovering from daily low of $1.12507. Immediate resistance can be seen at 1.2562(Daily high), an upside break can trigger rise towards 1.2610(50%fib).On the downside, immediate support is seen at 1.2515(38.2%fib), a break below could take the pair towards 1.2378(23.6%fib)
AUD/USD: The Australian dollar upward traction against greenback on Tuesday as traders assessed whether President-elect Donald Trump's tariffs would be less aggressive than promised.The greenback weakened after a Washington Post report suggested Trump's aides were considering tariffs limited to sectors deemed critical to U.S. national or economic security. Looking ahead, markets will focus on Australian consumer price data on Wednesday will shape Q4 forecasts, potentially influencing the RBA's February rate decision.At (GMT 05:45)The pair was last trading up 0.2 percent at 0.6260, having rallied 0.5% overnight to as high as $0.6302. Immediate resistance can be seen at 0.6282(38.2%fib), an upside break can trigger rise towards 0.6357(50%fib).On the downside, immediate support is seen at 0.6237(Daily low), a break below could take the pair towards 0.6195(23.6%fib).
USD/JPY: The U.S. dollar dipped against the yen on Tuesday as the market speculated on Trump’s tariff plans. The dollar weakened against its peers following a report that Trump's aides were considering tariffs targeting only sectors critical to U.S. national or economic security. However, Trump denied the report, creating more uncertainty around U.S. trade policy. Investors are now focusing on Friday's U.S. jobs report, which may offer clearer insights into the Federal Reserve's policy direction. Additionally, U.S. job openings data is due later today, with ADP employment figures and the Fed's December meeting minutes expected on Wednesday. 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
Asian shares followed Wall Street's positive momentum on Tuesday, with investors speculating that U.S. President-elect Donald Trump might adopt a less aggressive tariff approach than initially expected when he assumes office.
Japan’s Nikkei was down 2.14% , and South Korea's KOSPI was up by 0.15%, China A50 was up by 0.25%.
Commodities Recap
Gold prices climbed on Tuesday, driven by a weaker U.S. dollar, as traders speculated that President-elect Donald Trump's tariff plans might be less aggressive than anticipated. Meanwhile, investors awaited U.S. jobs data to assess the Federal Reserve's interest rate outlook.
Spot gold was up 0.4% at $2,644.79 per ounce, as of 0548 GMT. U.S. gold futures rose 0.3% to $2,655.00.
Oil prices eased on Tuesday, extending losses for the second day following last week's rally, though concerns over tighter Russian and Iranian supply due to growing Western sanctions helped limit the decline.
Brent futures edged down 8 cents, or 0.1%, to $76.22 a barrel by 0452 GMT, while U.S. West Texas Intermediate (WTI) crude fell 15 cents, or 0.19%, to $73.42.
