Posted at 13 December 2018 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index declined, as investors curb their expectations for more Federal Reserve policy tightening in 2019. The greenback against a basket of currencies trades 0.05 percent down at 96.97, having touched a low of 96.36 on Monday, its lowest since Nov 22. FxWirePro's Hourly Dollar Strength Index stood at 44.17 (Neutral) by 0400 GMT.
EUR/USD: The euro rose, extending previous session gains after Italy lowered its deficit target for next year and said it expected the European Commission to accept its new 2019 budget proposal. Investors now await the European Central Bank's monetary policy meeting for further insights on the central bank's bond purchase programme. The European currency traded 0.1 percent up at 1.1377, having touched a high of 1.1442 on Monday, its highest since Nov. 20. FxWirePro's Hourly Euro Strength Index stood at 38.08 (Neutral) by 1000 GMT. Immediate resistance is located at 1.1412 (December 6 High), a break above targets 1.1455 (November 2 High). On the downside, support is seen at 1.1305 (November 30 Low), a break below could drag it till 1.1267 (November 28 Low).
USD/JPY: The dollar surged as risk-sentiment improved on indications that the trade war between the United States and China may be easing. The major was trading 0.2 percent up at 113.47, having hit a high of 113.52 on Wednesday, its highest since December 4. FxWirePro's Hourly Yen Strength Index stood at -89.61 (Slightly Bearish) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefits claims; and import and export price index. Immediate resistance is located at 113.66 (December 4 High), a break above targets 114.03 (November 28 High). On the downside, support is seen at 112.66 (October 23 Low), a break below could take it lower 112.08 (October 24 Low).
GBP/USD: Sterling rose to a 3-day peak after Prime Minister Theresa May survived a no-confidence vote from her party and hopes that Britain still had a chance to leave the European Union in March with a deal. The major traded 0.3 percent up at 1.2657, having hit a low of 1.2480 on Tuesday; it’s lowest since mid-April 2017. FxWirePro's Hourly Sterling Strength Index stood at 37.59 (Neutral) 1000 GMT. Immediate resistance is located at 1.2700, a break above could take it near 1.2754. On the downside, support is seen at 1.2560, a break below targets 1.2515. Against the euro, the pound was trading 0.1 percent down at 89.87 pence, having hit a low of 90.87 on Monday, it’s lowest since August 29.
USD/CHF: The Swiss franc edged higher after the Swiss National Bank kept its ultra-loose monetary policy unchanged at a policy meeting, as expected. The major trades 0.2 percent down at 0.9917, having touched a low of 0.9863 on Tuesday; it’s lowest since Oct. 16. FxWirePro's Hourly Swiss Franc Strength Index stood at -93.26 (Slightly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 0.9955 (Oct. 5 High) and any break above will take the pair to next level till 0.9980 (Nov. 23 High). The near-term support is around 0.9889 (Dec. 7 Low), and any close below that level will drag it till 0.9847 (Oct. 15 Low)
Equities Recap
European shares slumped, amid persistent uncertainty over Britain's exit from the European Union, while euro rose ahead of European Central Bank’s policy meeting decision.
The pan-European STOXX 600 index plunged 0.1 percent at 349.79 points, while the FTSEurofirst 300 index declined 0.1 percent to 1,379.96 points.
Britain's FTSE 100 trades 0.1 percent down at 6,874.48 points, while mid-cap FTSE 250 fell 0.4 to 17,929.23 points.
Germany's DAX surged 0.05 percent at 10,931.06 points; France's CAC 40 trades 0.05 percent higher at 4,909.47 points.
Commodities Recap
Crude oil prices declined, weighed down by high inventories, however, a drawdown in U.S. crude stockpiles limited downside. International benchmark Brent crude was trading 0.7 percent up at $59.77 per barrel by 1029 GMT, having hit a high of $63.67 on Friday, its highest since November 22. U.S. West Texas Intermediate was trading 0.7 percent down at $50.84 a barrel, after rising as high as $54.20 on Friday, its highest since the December 5.
Gold prices eased as the dollar steadied on signs of easing trade tensions between the United States and China. Spot gold was trading 0.05 percent down at $1,244.28 per ounce 1032 GMT, having touched a high of $1,250.46 on Monday, its highest level since July 11. U.S. gold futures were up 0.1 percent at $1,251.2 per ounce.
Treasuries Recap
The Japanese government bond prices declined across the board as an ebb in risk aversion dented demand for safe-haven debt. The 10-year JGB yield rose 0.5 basis point to 0.055 percent, edging away from a near 5-month trough of 0.035 percent set on Monday. The 30-year yield climbed half a basis point to 0.795 percent.
The Australian government bond futures eased a tad, with the three-year bond contract off 2 ticks at 98.015. The 10-year contract slipped 1-3/4 ticks to 97.5300. The New Zealand government bonds were barely changed.