Posted at 11 December 2023 / Categories Market Roundups
Market Roundup
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Looking Ahead Economic Data(GMT)
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• 00:30 Australia Nov NAB Business Survey 13 previous
Looking Ahead Events And Other Relases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro was little changed against dollar on Monday as investors prepared for crucial U.S. inflation data and awaited interest rate decisions from major global central banks. The spotlight for investors this week centers on the release of U.S. inflation data for November, scheduled for Tuesday, followed by the Federal Reserve's interest rate decision on Wednesday. Additionally, the European Central Bank and the Bank of England are slated to announce their respective rate decisions on Thursday. The euro was last flat at $1.0761, not too far from Friday's more than three-week low of $1.0724. Immediate resistance can be seen at 1.0776(5DMA), an upside break can trigger rise towards 1.080(23.6%fib).On the downside, immediate support is seen at 1.0742(38.2%fib), a break below could take the pair towards 1.0693(50%fib).
GBP/USD: Sterling gained ground against the US dollar on Monday, as traders prepared for a busy week of data releases and central bank meetings, including one at the Bank of England (BoE). The BoE will hold its final policy meeting of 2023 on Thursday. Market participants widely anticipate no change in the current Bank Rate, which is 5.25%, a 15-year high.In recent weeks, the market's attention has shifted to when the Bank of England will cut interest rates. Traders anticipate that the Bank of England will cut interest rates more slowly than the Federal Reserve of the United States. Immediate resistance can be seen at 1.2604(5DMA), an upside break can trigger rise towards 1.2627 (23.6%fib).On the downside, immediate support is seen at 1.2525 (38.2%fib), a break below could take the pair towards 1.2444(50%fib).
USD/CAD: The Canadian dollar strengthened against the US dollar on Monday as oil prices rose and investors bet that the Federal Reserve would not raise interest rates at a meeting this week. Financial markets were quiet ahead of U.S. consumer price index data due on Tuesday and the Fed meeting on Wednesday, both of which will put to the test investor optimism about interest rate cuts next year Oil prices rose, but concerns about crude oversupply in the coming year remained. Crude oil prices in the United States were up 0.4% to $71.54 per barrel. After trading in a range of 1.3551 to 1.3604, the loonie was trading 0.2% higher at 1.3565 to the greenback .Immediate resistance can be seen at 1.3585 (14DMA), an upside break can trigger rise towards 1.3602 (50% fib).On the downside, immediate support is seen at 1.3553(38.2% fib), a break below could take the pair towards 1.3490(23.6% fib).
USD/JPY: The U.S. dollar strengthened against the Japanese yen on Monday following a report indicating that the Bank of Japan perceived minimal necessity to cease negative interest rates in December. Bloomberg report indicated that Bank of Japan (BOJ) officials, as per informed sources, have not observed adequate evidence supporting robust wage growth to warrant terminating its extremely accommodating monetary policy this month. The dollar rose as high as 146.58 yen and was last at 146.14 yen, up 0.85% on the day. The dollar rose 0.13% against a basket of currencies to 104.08. Strong resistance can be seen at 146.67(50%fib),an upside break can trigger rise towards 147.80(5DMA).On the downside, immediate support is seen 145.51(23.6%fib)a break below could take the pair towards 143.90(23.6%fib).
Equities Recap
European shares were flat at the start of an event-packed week as investors braced for key U.S. inflation data and interest rate decisions from major global central banks, while metal price weakness weighed on miners.
UK's benchmark FTSE 100 closed down by 0.13 percent, Germany's Dax ended up by 0.21 percent, France’s CAC finished the day up by 0.33 percent.
US stocks gained modestly on Monday but closed at new highs for the year, ahead of major market catalysts this week, which include inflation readings and the Federal Reserve's policy announcement, both of which will have a significant impact on investor expectations about the path of interest rates.
Dow Jones closed up by 0.43 percent, S&P 500 ended up by 0.39 percent, Nasdaq finished the day up by 0.20 percent.
Commodities Recap
Oil prices rose marginally as OPEC+ output restrictions failed to entirely overcome concerns about crude oversupply and weaker fuel demand growth next year.
Brent crude futures settled up 19 cents, or 0.3%, to $76.03 a barrel while U.S. West Texas Intermediate crude futures settled up 9 cents, or 0.1%, at $71.32.
Gold prices fell to a near three-week low on Wednesday as the dollar strengthened, as investors anticipated several key central bank meetings and U.S. inflation data that could influence the Federal Reserve's policy path.
Spot gold was down 0.9% at $1,985.89 per ounce, as of 10:03 a.m. ET (1503 GMT), after hitting the lowest since Nov. 21. U.S. gold futures eased 0.6% to $2,001.50.