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America’s Roundup: Dollar retreats as risk appetite returns at year-end,Wall Street’s festive rally pauses, Oil hits three-month high on falling oil stocks, investor optimism-December 28th,2019

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Market Roundup

• US Wall Street opens at record high

• Brazil Nov Bank lending (MoM)  1.1%,0.3%  previous

• US Natural Gas Storage-161B, -148B  forecast, -107B previous

• US Crude Oil Inventories -5.474M , -1.724M forecast, -1.085M previous

• US Gasoline Inventories 1.963M, 1.663M forecast, 2.529M previous

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Looking Ahead – Economic Data (GMT)

• No economic data ahead

Looking Ahead – Events, Other Releases (GMT)    

• No significant events.

Currency Summaries

EUR/USD: The euro rose against the U.S. dollar on Friday, as speculators unwound their short positions before the end of the year, with thin liquidity during the holiday season amplifying moves. Bleak European economic data meant hedge funds bet on an even weaker euro during 2019, but the battered currency  rose on Friday to an eight day high of $1.1142.The euro was last trading at  0.76 percent at $1.1182. Immediate resistance can be seen at 1.1189 (higher BB), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1178 (11 DMA), a break below could take the pair towards 1.1100 (Psychological level).

GBP/USD: The British pound jumped higher against dollar on Friday, after European Commission President Ursula von der Leyen said the European Union may need to extend the deadline for talks about a new trade relationship with Britain. Even with the recent UK general election smoothing the path for Britain’s exit from the European Union, Britain’s ability to strike a new trading deal between the EU in a relatively short span of time remains a concern for some investors. The pound was up 0.79% at $1.3092, above a low of $1.2900 hit on Monday. Immediate resistance can be seen at 1.3097 (11 DMA), an upside break can trigger rise towards 1.3175 (Dec 10th high).On the downside, immediate support is seen at 1.2961 (50 DMA), a break below could take the pair towards 1.2900 (Psychological level). 

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, as Canadian dollar was supported by higher oil prices as upbeat economic data from China and the United States restored confidence in global growth. Oil trade was thin. But oil-market sentiment improved as new data showed profits at China’s industrial firms rose at the fastest pace in eight months in November, according to the National Bureau of Statistics.At (19:49 GMT), the Canadian dollar was trading 0.30% higher at 1.3072 to the greenback. The currency traded in a range of 1.3123 to 1.3181. Immediate resistance can be seen at 1.3121 (Daily high), an upside break can trigger rise towards 1.3137 (11 DMA).On the downside, immediate support is seen at 1.3060 (Lower BB), a break below could take the pair towards 1.3000 (Psychological level).

USD/JPY: The dollar dipped against the Japanese yen on Friday, as volumes remained thin in cautious holiday trade, supported by global economic growth concerns and U.S.-China trade uncertainties. Traders returned from their Christmas and Boxing Day break to digest comments from Beijing that it was in close contact with Washington about an initial trade agreement. Earlier, U.S. President Donald Trump had talked up a signing ceremony for the recently struck Phase 1 trade deal. The dollar index, which measures the greenback against six other major currencies, was 0.49% lower at 97.059. Strong resistance can be seen at 109.70 (26th Dec high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.41 (11 DMA), a break below could take the pair towards 109.18 (21 DMA). 

Equities Recap

European stocks wrapped up a holiday-thinned week at record highs on Friday as growing hopes that a Sino-U.S. trade deal would be inked soon, as well as the latest dose of upbeat China data supported prospects of an improving global growth.

The UK’s benchmark FTSE 100 closed down by 1.42 percent, Germany’s Dax ended down by 2.19 percent, and France’s CAC finished the down  by 2.08 percent.

Wall Street hovered at record highs on Friday, as investors paused after a year-end rally that has been fueled by optimism over a U.S.-China trade truce and an improving global economy.

Dow Jones closed up by 0.08 percent, S&P 500 ended at 0.00 percent, Nasdaq finished the day down by 0.17 percent.

Treasuries Recap

U.S. Treasury yields fell on Friday as the debt found support following a selloff that sent yields to one-month highs, with year-end portfolio rebalancing likely helping demand for the bonds.

 Yields have risen this month as optimism about a trade agreement between the United States and China increased risk appetite.

Benchmark 10-year yields have backed up from 1.69% at the beginning of December and are up from a three-year Low of 1.43% reached on Sept. 3.

Commodities Recap

Gold held firm above $1,500 an ounce on Friday and was set for its best week in nearly four months, as volumes remained thin in cautious holiday trade, with global economic growth concerns and U.S.-China trade uncertainties providing support.

Spot gold was unchanged at $1,511.41 per ounce as of 10:31 a.m. ET (1531 GMT), having risen to a near two-month high of $1.513.88 earlier in the session. It has gained over 2% so far this week, the most since the week of Aug. 9.

Oil prices rose to the fourth consecutive weekly gain on Friday, steadying at three-month highs after new data showed U.S. crude inventories fell far more than expected, while upbeat economic data and optimism over a U.S.-China trade deal fueled a year-end stock market rally.

Brent crude  rose 24 cents to settle at $68.16 a barrel, the highest since mid-September. The international benchmark has climbed nearly 27% since the end of 2018.

West Texas Intermediate  rose 4 cents to settle at $61.72 a barrel, another three-month high. The U.S. benchmark has risen 36% so far this year.


 



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