Posted at 02 January 2025 / Categories Market Roundups
Market Roundup
• US Weekly jobless claims at 211,000, below estimates
•US Continuing Jobless Claims 1,844K, 1,890K forecast, 1,896K previous
•US Initial Jobless Claims 211K, 222K forecast, 220K previous
•US Jobless Claims 4-Week Avg. 223.25K, 226.75K previous
•Canada S&P Global Manufacturing PMI (Dec) 52.2, 51.9 forecast, 52.0 previous
•US S&P Global Manufacturing PMI (Dec) 49.4, 48.3 forecast, 49.7 previous
•US Construction Spending (MoM) (Nov) 0.0%, 0.3% forecast, 0.4% previous
•US Crude Oil Inventories -1.178M, -2.400M forecast, -4.237M previous
Looking Ahead Economic (GMT)
•23:50 Japan Foreign Bonds Buying -919.2B previous
•23:50 Japan Foreign Investments in Japanese Stocks -1,022.6B previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro fell sharply against the dollar on Thursday as euro attracted sellers after data showed that the manufacturing slowdown in the Eurozone worsened in December . HCOB's euro zone manufacturing Purchasing Managers' Index, compiled by S&P Global, dipped to 45.1 in December, just under a preliminary estimate and further below the 50 mark separating growth from contraction, where it has been since mid-2022. Germany, France, and Italy fared worse while Spain and Greece fared better in the eurozone. The dollar index was last up 0.77% on the day at 109.38.The euro dropped 1.01% to $1.025, its lowest since November 2022.Immediate resistance can be seen at 1.0347(38.2%fib), an upside break can trigger rise towards 1.0415(50%fib).On the downside, immediate support is seen at 1.0250(23.6%fib), a break below could take the pair towards 1.0215(LowerBB)
GBP/USD: The pound tumbled against the dollar on Thursday, pressured by disappointing U.K. PMI data. British factory activity shrank at its fastest pace in 11 months in December, with manufacturers cutting staff due to rising taxes and weak foreign demand. The S&P Global UK Manufacturing Purchasing Managers' Index dropped to 47.0 from 48.0 in November, falling below the preliminary December reading of 47.3, signaling further economic weakness. After outperforming most major currencies against the dollar last year, sterling slid 1.19% to $1.2368, its lowest level since April. Immediate resistance can be seen at 1.2481(38.2%fib), an upside break can trigger rise towards 1.2532 (Daily high).On the downside, immediate support is seen at 1.2347(23.6%fib), a break below could take the pair towards 1.2314(Lower BB)
USD/CAD: The Canadian dollar weakened against the U.S. dollar on Thursday, the first trading day of 2025, but outperformed some other major currencies as oil prices rose and data showed Canada's factory sector expanding for a fourth consecutive month. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) increased to 52.2 in December from 52.0 in November, marking its highest level since February 2023. This was the fourth consecutive month above the 50.0 no-change mark, driven in part by inventory accumulation by U.S. clients ahead of anticipated trade tariffs. The loonie was trading 0.2% lower at 1.4410 to the U.S. dollar, after moving in a range of 1.4370 to 1.4442. Immediate resistance can be seen at 1.4450 (23.6%fib), an upside break can trigger rise towards 1.4537(Higher BB).On the downside, immediate support is seen at 1.4342(38.2%fib), a break below could take the pair towards 1.4274(50%fib).
USD/JPY: The U.S. dollar strengthened against the yen on Thursday, supported by expectations that U.S. growth will outperform other economies, keeping U.S. interest rates elevated. The Federal Reserve has signaled caution in cutting rates, with inflation still above its 2% target and a robust economy. Additionally, policies from U.S. President-elect Donald Trump are expected to stimulate growth and potentially increase inflationary pressures. On the data front, new claims for unemployment benefits dropped to an eight-month low last week, signaling low layoffs at the end of 2024. The dollar strengthened 0.47% to 157.60 against the Japanese yen Immediate resistance can be seen at 158.18 (23.6%fib) an upside break can trigger rise towards 159.00 (Psychological level). On the downside, immediate support is seen at 156.73(38.2%fib) a break below could take the pair towards 155.71(50%fib).
Equities Recap
European stocks started 2025 on a positive note Thursday, bolstered by strong gains in the energy sector, as global investors digested fresh economic data from the United States.
UK's benchmark FTSE 100 closed up by 1.07 percent, Germany's Dax ended up by 0.58 percent, France’s CAC finished the day up by 0.18 percent.
Wall Street closed lower on Thursday amid volatile trading, as investors navigated a mix of strong labor market data, a rising dollar, and falling Tesla shares in the first session of the New Year.
Dow Jones closed down by 0.36% percent, S&P 500 closed down by 0.20% percent, Nasdaq settled down by 0.16% percent.
Commodities Recap
Gold surged to a two-week high on Thursday, driven by safe-haven demand as investors adjusted positions ahead of the Federal Reserve's rate decisions and potential trade tariffs under President-elect Donald Trump.
Spot gold rose 1.2% to $2,654.24 an ounce by 02:57 p.m. EST (1957 GMT), hitting its highest since Dec. 16. U.S. gold futures settled 1.1% higher at $2,669.
Oil prices rose over $1 a barrel on Thursday as investors kicked off 2025 with optimism about China's economy and fuel demand, following President Xi Jinping's pledge to support growth.
Brent crude futures settled at $75.93 a barrel, up $1.29, or 1.7%. U.S. West Texas Intermediate crude settled at $73.13 a barrel, up $1.41 or 2%.