Posted at 08 December 2021 / Categories Market Roundups
• French Non-Farm Payrolls (QoQ) (Q3) 0.4% ,0.5% forecast, 1.1% previous
• Finnish Oct Trade Balance -0.57B , 0.12B previous
Looking Ahead - Economic Data (GMT)
•12:00 US Mortgage Refinance Index 2,304.5 previous
•12:00 US Mortgage Market Index 604.2 previous
• 15:00 Canada BoC Interest Rate Decision 0.25% forecast,0.25% previous
• 15:00 US Oct JOLTs Job Openings 10.369M forecast, 10.438M previous
• 15:30 US Gasoline Inventories 1.798M forecast, 4.029M previous
• 15:30 US Cushing Crude Oil Inventories1.159M previous
• 15:30 US Crude Oil Inventories -1.705M forecast, -0.910M previous
Looking Ahead - Events, Other Releases (GMT)
•13:10 ECB's Enria Speaks
•13:10 ECB's Schnabel Speaks
•15:00 Canada BOC Press Conference
•15:00 Canada BoC Rate Statement
EUR/USD: The euro recovered ground against dollar on Wednesday as fears the Omicron variant would knock economies off course eased. Currency markets were generally calm as stocks extended their rebound and investors took comfort from signs the latest COVID-19 variant would not derail the economic recovery. The euro edged 0.05% higher to $1.12735, after touching its lowest since Nov. 26 at $1.1228 in the previous session. Immediate resistance can be seen at 1.1301 (38.2% fib), an upside break can trigger rise towards 1.1315 (21 DMA).On the downside, immediate support is seen at 1.1274(38.2%fib), a break below could take the pair towards 1.1179 (23.6% fib).
GBP/USD: Sterling declined the dollar on Wednesday as sterling attracted sellers before U.S. data and a Bank of England policy meeting in which policymakers may keep interest rates on hold. Money markets are assigning a 58% probability of a 15 bps rate increase next week, down from a nearly 70% probability two weeks ago.The Bank of England may hold off again next week on becoming the world's first big central bank to raise interest rates from their pandemic lows, due to the emergence of the Omicron variant of the coronavirus. Immediate resistance can be seen at 1.3242(50%fib), an upside break can trigger rise towards 1.3311(61.8%fib).On the downside, immediate support is seen at 1.3183 (38.2%fib), a break below could take the pair towards 1.3109 (23.6%fib).
USD/CHF: The dollar was little chaned against the Swiss franc on Wednesday as investors became less concerned about the Omicron variant . Market became volatile last month when the discovery of a new COVID-19 variant spooked investors. But sentiment has improved this week in the absence of indications that the variant would derail the economic recovery. The JOLTS report on U.S. job openings, due later on Wednesday, should provide further evidence of a tightening labour market, potentially adding fodder for bets on earlier Fed tightening. Dollar dipped 0.05% to the franc at 0.9242. Immediate resistance can be seen at 0.9251(21DMA), an upside break can trigger rise towards 0.9276 (23.6%fib).On the downside, immediate support is seen at 0.9229 (38.2%fib), a break below could take the pair towards 0.9194(50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as investor focus shifted to key inflation data due this week that could influence the Federal Reserve's decision to taper its stimulus at a faster pace. Markets are focused on U.S. inflation data due Friday, with a high print likely to point policymakers towards accelerating the tapering of the Federal Reserve's massive bond buying programme. Dollar was 0.14% higher against the yen at 113.70 yen. Strong resistance can be seen at 113.77 (23.6%fib), an upside break can trigger rise towards 113.96 (Higher BB).On the downside, immediate support is seen at 113.16 (38.2%fib), a break below could take the pair towards 112.66 (50%fib).
European stocks dipped on Wednesday after marking their strongest two-day gain in more than a year, with defensive stocks rising as investors weighed the effectiveness of existing vaccines against the Omicron coronavirus variant.
At (GMT 11:15),UK's benchmark FTSE 100 was last trading up at 0.11 percent, Germany's Dax was down by 0.54% percent, France’s CAC finished was down up by 0.30% percent.
Gold prices rose on Wednesday as the dollar and U.S. Treasury yields eased, with investor focus shifting to key inflation data due this week that could influence the Federal Reserve's decision to taper its stimulus at a faster pace.
Spot gold was up 0.27% at $1,788.92 per ounce, as of 0807 GMT, while U.S. gold futures rose 0.33% to $1,790.50 per ounce.
Oil prices edged lower on Wednesday, reversing gains from earlier the week, as investors tried to assess the full impact of the Omicron coronavirus variant on global fuel demand and the effectiveness of existing vaccines.
Brent crude futures dropped 25 cents, or 0.3%, to $75.19 a barrel at 0129 GMT, after settling 3.2% higher on Tuesday. U.S. West Texas Intermediate crude was at $71.86 a barrel, down 19 cents, or 0.3%, having gained 3.7% in the previous session.