Europe Roundup: Euro Falls Below $ 1.13, Gold Slips, Oil Prices Rise Again As US Inventories Dip On Dec 29, 2021

Market overview

• Switzerland dec. ZEW expectations 0.0, -10.8 previous

• November loans from the EU to non-financial corporations 2.9%, previous 2.5%

• EU private sector loans (year-on-year) 4.2%, 4.2% expected, 4.1% previous

Future Outlook – Economic Data (GMT)

• 13:30 United States Wholesale Inventories (MoM) 1.8% forecast, 2.3% previous

• 13:30 US merchandise trade balance in November -89.00 billion dollars, previous -83.20 billion dollars

• 1:30 p.m. US Nov. Retail inventories excluding auto 0.5% previous

• 1:30 p.m. US pending home sales (MoM) 0.5%, previous 7.5

• 3:30 p.m. Gasoline inventories in the United States – Forecast of 0.031 M, previously 5.533 M

• 3:30 pm US crude oil inventories -3.233M forecast, -4.715M previous

Future Outlook – Economic Events and Other Releases (GMT)

• No significant event

Fxbeat

EUR / USD: The euro fell in holiday trading on Wednesday as rising coronavirus cases weighed on the single currency. The euro has also plunged into concerns over the country’s political stability if former ECB chief Mario Draghi were to step down as prime minister. Draghi is the main candidate for the Italian presidency in a parliamentary vote that will take place in January. The euro rose 0.02% to $ 1.1281. Immediate resistance can be seen at 1.1293 (50% fib), a bullish breakout can trigger a rise towards 1.1315 (38.2% fib). On the downside immediate support is seen at 1.1272 (61.8% fib), a break below could take the pair towards 1.1200 (Psychological level).

GBP / USD: The British pound dipped against the dollar on Wednesday as rising coronavirus cases raised concerns about the chances of a global economic recovery next year weighing on the pound. Britain reported a record 129,471 new COVID-19 cases on Tuesday, a day after Prime Minister Boris Johnson said he would not impose new restrictions this year to limit the spread of the variant of the Omicron coronavirus. Immediate resistance can be seen at 1.3468 (38.2% fib), a bullish breakout can trigger a rise towards 1.3534 (23.6% fib). circa 1.3347 (61.8% fib).

USD / CHF: The dollar edged up against the Swiss franc on Wednesday as the dollar rallied during the holidays. The dollar was also supported by a rise in two-year Treasury yields which reached 0.758% on Tuesday, a near two-year high, before retreating slightly to 0.7461%. The dollar index, which measures the greenback against its major peers, rose to 96.240 from Monday’s close of 96.068, advancing against most other currencies after the euro lost 0.14% on Tuesday . Immediate resistance can be seen at 0.9177 (5DMA), a bullish breakout can trigger a rise towards 0.9197 (38.2% fib). On the downside immediate support is seen at 0.9160 (50% fib), a break below could take the pair towards 0.9121 (61.8% fib).

USD / JPY: The dollar edged up against the Japanese yen on Wednesday as the safe haven yen fell as the dollar rallied sharply on increased risk appetite. The dollar appreciated against the safe haven yen, gaining 0.1% to 114.98, its strongest since late November. As the yen was beaten by the strength of investor risk appetite, analysts said quarter-end investor flows were also having an impact on the currency. Strong resistance can be seen at 115.00 (23.6% fib), a breakout to the upside may trigger a rise towards 115.19 (higher BB). On the downside immediate support is seen at 114.63 (5 DMA), a break below could take the pair towards 114.40 (38.2% fib).

Summary of actions

A Christmas rally in European stocks came to a halt near five-week highs on Wednesday as investors tread a bit as year-end approaches, cases of the Omicron coronavirus swelling in the world.

At (GMT 10:30 am), the UK benchmark FTSE 100 was last trading at 0.98%, the German Dax was down 0.38%, the French CAC was up 0.01% .

Summary of commodities

Gold edged down in weak trading on Wednesday as the dollar strengthened and US Treasury yields stabilized after falling earlier in the session, although prices remained above the key level of $ 1,800 per ounce.

Spot gold was last down 0.2% at $ 1,802.67 an ounce at 0821 GMT. US gold futures fell 0.4% to $ 1,803.00.

Oil prices edged higher on Wednesday after recovering overnight as industry data showed lower U.S. inventories, bolstering demand sentiment.

Brent crude rose 26 cents, or 0.3%, to $ 79.20 a barrel at 7:59 am GMT. U.S. West Texas Intermediate (WTI) crude climbed 19 cents, or 0.2%, to $ 76.17 a barrel.


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Felix J. Dixon