Market Roundup
• Asian shares subdued near year-end, set for 2025 gains
•Silver, gold find footing after startling slump
•Oil holds most of overnight gains as Ukraine peace hopes dented
Looking Ahead Economic Data (GMT)
•08:00 Spanish HICP (YoY) (Dec) 3.0% forecast, 3.2% previous
•08:00 Spanish CPI (YoY) (Dec) 2.9% forecast,3.0% previous
•08:00 Spanish HICP (MoM) (Dec)0.0% previous
•08:00 Spanish CPI (MoM) (Dec) 0.2% previous
•08:00 Spanish Retail Sales (YoY) (Nov)3.8% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro traded largely flat against dollar in early Tuesday as liquidity thinned as investors wind down positions ahead of the year-end holiday period. With few fresh catalysts on the immediate horizon, price action remained subdued and largely range-bound. Geopolitical sentiment was tempered after Russian President Vladimir Putin pushed back against optimism surrounding a potential Ukraine peace deal, delivering a reality check to markets that had briefly priced in easing tensions. Looking ahead, attention turns to key data releases on Wednesday, including China’s December NBS and Rating Dog manufacturing PMIs, alongside U.S. jobless claims, which could offer fresh insight into global growth and labor market conditions. 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: Sterling traded flat against the dollar on Tuesday as markets paused ahead of the year-end holiday period. Support for sterling continues to stem from a diverging Bank of England–Federal Reserve policy outlook, alongside growing optimism around the UK economic backdrop, which has helped underpin demand for the pound. Political developments in the U.S. remain in focus, with former President Donald Trump expected to name the next Federal Reserve chair in January. Markets broadly view the potential nominee as more inclined toward rate cuts, a factor weighing on longer-term dollar sentiment. The Bank of England remains cautious on delivering further rate cuts, with inflation still running well above its 2% target, reinforcing expectations that UK policy will stay restrictive for longer than in the U.S 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).
AUD/USD: The Australian dollar edged higher on Tuesday as slide in precious metals from gold to silver halted supporting Australian dollar. Liquidity across most markets is thin in a holiday-shortened week, which exacerbated volatile price swings in silver and other precious metals overnight.Continued gains across commodities, especially gold and copper both of which are major export earners for Australia have supported the Australian dollar. Price of gold bounced 0.8% on Tuesday, after losing 4.4% overnight. Silver also rebounded 3%.Looking ahead to the next year, the Australian dollar is expected to get some boost from the diverging interest rate outlooks at home and abroad. Immediate resistance can be seen at 0.6695(23.6%fib), an upside break can trigger rise towards 0.6726(Higher BB).On the downside, immediate support is seen at 0.6654(Daily low), a break below could take the pair towards 0.6609(38.2%fib)
USD/JPY: The U.S. dollar edged higher on Tuesday, but gains were limited as markets assessed the timing of further Japan rate hikes and the risk of intervention. Bank of Japan policymakers debated the need for further rate hikes, minutes showed, after the bank raised its policy rate earlier this month to a 30-year high of 0.75% from 0.5%.Finance Minister Satsuki Katayama said last week Japan has a free hand to counter excessive yen moves, with similar official comments helping check the currency’s recent weakness against the dollar.BOJ Governor Kazuo Ueda reiterated on Thursday that the central bank is ready to keep raising rates if economic and inflation conditions warrant, lending further support to the yen. 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
Asian shares slipped on Tuesday, tracking Wall Street's tech slump, while silver and gold steadied after a sharp pullback from record highs took some froth off the precious metals' incredible rally.
China’s A50 down 0.25%, Japan’s Nikkei 225 was down by 0.08% ,South Korea’s KOSPI was down at 0.17%
Commodities Recap
Gold rose on Tuesday to recover from a two-week low hit in the previous session onyear-end profit-taking that sparked a broad pullback in precious metals from earlier peaks.
Spot gold was up 0.7% at $4,363.79 per ounce, as of 0322 GMT, after hitting a record high of $4,549.71 on Friday. It fell to its lowest since December 17 on Monday, also its sharpest daily loss since October 21.
U.S. gold futures for February delivery were up 0.8%at $4,377.80/oz
Oil prices retreated a touch early on Tuesday after rising more than 2% in the previous session, partly driven by spillover from a pullback in precious metals even as escalating Russia–Ukraine tensions left markets grappling with supply disruption fears.
Brent crude futures for February delivery , which expires on Tuesday, were down 21 cents, or 0.3%, at $61.73 a barrel as of 0150 GMT.
The more active March contract was at $61.30, down 19 cents or 0.3%.U.S. West Texas Intermediate crude eased 20 cents, or 0.3%, at $57.88.
