Posted at 03 January 2025 / Categories Market Roundups
Market Roundup
• Singapore Retail Sales (YoY) (Nov) -0.7% 2.4% previous
•Singapore Retail Sales (MoM) (Nov) -2.8% 0.3% previous
Looking Ahead Economic (GMT)
•08:55 German Unemployment Change (Dec) 15K forecast, 7K previous
•08:55 German Unemployment Rate (Dec) 6.2% forecast, 6.1% previous
•08:55 German Unemployment (Dec) 2.860M previous
•08:55 German Unemployment n.s.a. (Dec) 2.774M previous
•09:30 French Car Registration (YoY) (Dec) -12.7% previous
•10:00 Greek Unemployment Rate (Nov) 9.8% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro held near a two-year low against the dollar on Friday after data revealed that manufacturers in the eurozone ended last year on a weak note, with factory activity declining at an accelerated pace. The HCOB Eurozone Manufacturing Purchasing Managers' Index (compiled by S&P Global) dropped to 45.1 in December, slightly below the preliminary estimate and well below the 50 mark that separates growth from contraction. This marks a continued contraction since mid-2022. While Germany, France, and Italy saw a sharper downturn, Spain and Greece performed better within the Eurozone. The common currency last bought $1.0270 and was headed for a 1.6% weekly decline, its worst since November. 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(Lower BB).
GBP/USD: The pound traded near eight month low against the dollar on Friday following a report that showed British factory activity shrank at the fastest pace in 11 months. British factory activity contracted in December, with manufacturers cutting staffing levels due to higher taxes and weak foreign demand, according to a survey released Thursday. The S&P Global UK Manufacturing Purchasing Managers' Index fell to 47.0 in December from 48.0 in November, below the preliminary reading of 47.3. This marks the latest in a series of weak economic readings for the UK. Immediate resistance can be seen at 1.2490(38.2%fib), an upside break can trigger rise towards 1.2532 (Jan 2nd 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)
AUD/USD: The Australian dollar pair recovered some ground on Friday as higher commodities prices and an improving economic outlook in China provided some support to Australian dollar. President Xi Jinping New Year's address on Tuesday that China would implement more proactive policies to promote growth in 2025.China's December survey showed weak manufacturing growth, but services and construction fared better, indicating that policy stimulus is supporting these sectors . Oil prices extended gains as expectations grew that governments around the world might step up policy support to boost economic growth, which could, in turn, drive higher fuel demand .As of GMT 07:24, the Australian dollar was trading up 0.08% at $0.6208. Immediate resistance can be seen at 0.6220(Daily high), an upside break can trigger rise towards 0.6279(38.2%fib).On the downside, immediate support is seen at 0.6180(23.6%fib), a break below could take the pair towards 0.6160(Lower BB)
USD/JPY: The U.S. dollar eased against the yen on Friday as growing concerns that Japanese authorities may intervene to stabilize the currency provided some support to yen. Leading Japanese financial officials recently expressed concerns about the yen's fluctuations, signaling that the government is ready to intervene if speculative trading becomes excessive. Japan last intervened in the currency markets in July, conducting a yen-buying operation to support the currency after it dropped to a 38-year low below 161 yen per dollar.At GMT 07.18,the dollar was down 0.22% at 157.16 against 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
Asian stocks rose on Friday, attempting to recover from a sluggish start to 2025, while the dollar held steady near a two-year high against a basket of currencies.
S&P/ASX 200 was up 0.60% , and South Korea's KOSPI was up by 1.79%, Hang Seng was up by 0.36%.
Commodities Recap
Oil prices extended gains on Friday, building on the previous session's two-month high, amid expectations that governments worldwide may ramp up policy support to boost economic growth, which would, in turn, drive higher fuel demand.
Brent crude futures rose 22 cents, or 0.3%, to $76.15 a barrel by 0420 GMT, after settling at its highest since Oct. 25 on Thursday. U.S. West Texas Intermediate crude was up 25 cents, or 0.3%, at $73.38 a barrel
Gold prices firmed near three-week highs on Friday, supported by a weaker U.S. dollar and safe-haven flows.
Spot gold was up 0.1% at $2,660 per ounce as of 0525 GMT, hitting its highest level since Dec. 13 earlier in the session.