Europe Roundup: Sterling gains on tentatively on lifting of French blockade, Brexit deal hopes, European shares gain,Gold gains, Oil steadies as surprise U.S. stockbuild weighs-December 23rd,2020

Market Roundup

•German Nov Import Price Index (YoY) -3.8% -4.0%forecast,-3.9% previous

•German Nov Import Price Index (MoM) 0.5% , 0.4% forecast,, 0.3% previous

•Spanish GDP (QoQ) (Q3) 16.4%,16.7% forecast, -17.8% previous

•Spanish GDP (YoY) (Q3) -9.0%,-8.7% forecast, -21.5% previous

•Italian Dec Consumer Confidence 102.4, 98.5 forecast, 98.1 previous

•Italian Dec Business Confidence 95.9, 90.5 forecast, 90.2 previous

•Belgium Dec CPI (YoY) 0.41%,0.51% previous

Looking Ahead – Economic Data (GMT)

•13:30 US Nov Core PCE Price Index (YoY) 1.5% forecast ,1.4% previous

•13:30 Canada Oct GDP (MoM) 0.3% forecast , 0.8% previous

•13:30 US Continuing Jobless Claims 5,558K forecast 5,508K previous

•13:30 US Jobless Claims 4-Week Avg 812.50K previous

•13:30 US Initial Jobless Claims 885K forecast, 885K previous

•13:30 US Core PCE Price Index (MoM) 0.1% forecast, forecast, 0.2% previous

•13:30 US PCE Nov price index (MoM) 0.2% previous

•13:30 US PCE Price index (YoY) 1.2 previous

•13:30 U S Real Personal Consumption (MoM) 0.5% previous

•13:30 US Nov Personal Spending (MoM) -0.2% forecast, 0.5% previous

•13:30 US Nov Personal Income (MoM) -0.3% forecast, -0.7% previous

•14:00 US Oct House Price Index 302.6 previous

•14:00 US Oct House Price Index (YoY) 9.1% previous

•15:00 US Dec Michigan 5-Year Inflation Expectations 2.50% forecast , 2.50% previous

•15:00 US Dec Michigan Consumer Expectations 74.7 forecast , 74.7 previous

•15:00 US Dec Michigan Consumer Sentiment 81.3 forecast , 81.4 previous

•15:00 US Nov New Home Sales 995K forecast , 999K previous

•US Nov New Home Sales (MoM) -0.3% forecast , -0.3% previous

•15:30 US Crude Oil Inventories -3.186M forecast, -3.135M previous

•17:00 US Natural Gas Storage-160B forecast, -122B previous

Looking Ahead – Economic events and other releases (GMT)

• No significant events


EUR/USD: The euro gained against dollar on Wednesday as foreign exchange traders looked beyond U.S. President Donald Trump’s threat not to approve a $892 billion COVID-19 aid package.Trump said the long-awaited stimulus package should be amended to increase the amount in the stimulus checks potentially disrupting the bill. At 1230 GMT, the dollar was 0.1% lower against a basket of currencies. The euro climbed 0.2% to $1.2183. Immediate resistance can be seen at 1.2218(14DMA), an upside break can trigger rise towards 1.2274(23.6%fib).On the downside, immediate support is seen at 1.2144 (38.2%fib), a break below could take the pair towards 1.2114(20DMA).

GBP/USD: Sterling firmed on Wednesday after three days of falls as France lifted a partial border blockade aimed at stopping the spread of a fast-spreading new COVID-19 strain, and hopes grew of a post-Brexit trade deal despite discouraging comments from both sides.Just eight days before the United Kingdom exits the EU’s orbit, no trade deal has yet been sealed though an array of conflicting signals indicate, variously, that a deal is imminent or that talks have far to go. By 1220 GMT, sterling was up 0.3% against the dollar at $1.3420, off an earlier high of $1.3442, though it had fallen as low as $1.3190 on Monday. Immediate resistance can be seen at 1.3413(38.2%fib), an upside break can trigger rise towards 1.3501(23.6%fib).On the downside, immediate support is seen at 1.1333 (50%fib), a break below could take the pair towards 1.3249 (61.8%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as uncertainty around a COVID stimulus package in the U.S failed to move dollar lower against swiss franc on Wednesday in pre-holiday trading.U.S. President Donald Trump threatened on Tuesday not to sign an $892 billion coronavirus relief bill, hopes for which have boosted risk assets in recent weeks, saying the amount in stimulus checks should be increased. At (GMT 12:16), Greenback gained 0.09% versus the Swiss franc to 0.8899. Immediate resistance can be seen at 0.8905 (38.2%fib), an upside break can trigger rise towards 0.8927 (23.6%fib).On the downside, immediate support is seen at 0.8886(38.2%fib), a break below could take the pair towards 0.8868 (61.8%fib).

USD/JPY: The dollar dipped against the Japanese yen on Wednesday as a last-minute intervention by President Donald Trump dampened positive sentiment over a U.S. stimulus deal. The stimulus funds are needed as the U.S. recovery stalls and hospitals struggle to cope with a nationwide spike in coronavirus infections at the same time as an even more contagious variant of the disease spreads quickly in Britain.The possibility of a delay to such long-awaited and hard-fought spending plans sent dollar down against yen 0.14% at 103.47. Strong resistance can be seen at 103.66 (50%fib), an upside break can trigger rise towards 103.86 (61.8%fib).On the downside, immediate support is seen at 103.46 (38.2%fib), a break below could take the pair towards 103.21 (23.6%fib).

Equities Recap

European shares gained for a second day on Wednesday, extending a recovery from a sharp sell-off at the start of the week, following a report that a Brexit trade deal could be struck later in the day.

At (GMT 12:15),UK’s benchmark FTSE 100 was last trading up at 0.00 percent, Germany’s Dax was up by 0.77 percent, France’s CAC finished was up by 0.65 percent.

Commodities Recap

Gold gainsGold prices gained some ground on Wednesday after President Donald Trump threatened not to sign the U.S. pandemic relief bill, triggering a drop in the dollar.

Spot gold was up 0.3% at $1,865.65 per ounce by 1056 GMT, while U.S. gold futures were steady at $1,870.90.

Oil steadied on Wednesday after earlier losses sparked by an unexpected rise in U.S. crude oil inventories, and as President Donald Trump rattled markets by threatening not to sign a long-awaited U.S. COVID-19 relief bill.

Brent crude futures were up 12 cents, or 0.2%, to $50.20 a barrel at 1046 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 9 cents, or 0.2%, to $47.11 a barrel. Both contracts fell nearly $1 earlier in the session.

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