Market Roundup
- Dallas Fed Dec Mfg output index 13.4, prior 5.2.
- Dallas Fed Dec Mfg index of general business activity -20.1. prior -4.9.
- Saudi Arabia to issue international bonds to preserve solvency of banking sector.
- Saudi Arabia to adjust domestic energy prices.
- Saudi Aramco’s Chairman Falih: Optimistic oil mkt will balance, prices to recover; Low oil price to reduce new investment in production globally, stimulate demand next year.
- Saudi Aramco’s Falih: Saudi Arabia has more capacity than others to wait out market until it balances.
- Russian Energy Minister Novak: Russia ready to increase gas supplies to Turkey.
- Brazil’s Treasury Official: Gov’t to detail payment of debts with state-run banks by Wednesday.
- Puerto Rico Gov. Padilla alerted U.N. to Amicus Brief filed with U.S. Supreme Court which says Puerto Rico doesn’t possess independent sovereignty.
Looking Ahead – Economic Data (GMT)
- No major releases scheduled
Looking Ahead – Events, Other Releases (GMT)
- No Significant Events
Currency SummariesEUR/USD is likely to find support at 1.0920 levels and currently trading at 1.0972 levels. The pair has made session high at 1.0989 and hit lows at 1.0956 levels. Dollar edged lower against euro on Monday as some traders who had taken bullish bets on the greenback took profits ahead of year- end. Dollar edged lower as bullish bets on the currency, which have been popular this year on the view that a Federal Reserve rate hike and looser monetary policy abroad would boost the greenback, were closed out to realize profits before year-end. The euro was last up 0.05 percent against the dollar at $1.09760, just below a more than one-week high of $1.10000. To the upside, immediate resistance can be seen at 1.0000. To the downside, immediate support level is located at 1.0930 levels.USD/JPY is supported around 120.00 levels and currently trading at 120.36 levels. It hit session high at 120.46 and made session lows at 120.19 levels. The dollar slipped lower against Japanese Yen on Monday, after slides in oil prices sent investors switching their investments to safe heaven Japanese yen, dragging the US dollar lower. On the data front, Japan’s factory output fell for the first time in three months in November and retail sales declined, indicating that recovery in the world’s third-largest economy will be delayed until early in 2016. Industrial output fell 1.0 percent in November from the previous month, more than a median market forecast for a 0.6 percent decline, data by the trade ministry showed on Monday. On the other hand, retail sales fell 1.0 percent in November from a year earlier, more than a median forecast for a 0.6 percent drop, as warm weather hurt sales of winter clothing. To the upside, immediate resistance can be seen at 120.60. To the downside, immediate support level is located at 120.00 levels. USD/CAD is supported at 1.3850 levels and is trading at 1.3900 levels. It has made session high at 1.3915 and lows at 1.3890 levels. Canadian dollar dropped against US dollar after Canadian dollar was weighted down by drop in prices of both Brent and U.S. crude by about 3 percent on monday, reversing a brief rebound and dragging U.S. energy shares. Canadian dollar against its American namesake fell 0.6 percent to $1.3898, heading back towards this month’s 11-year lows.The currency’s strongest level of the session was C$1.3830, while its weakest was C$1.3914. It touched a more than 11-year low of C$1.4003 last week. Commodity-linked currencies including the Australian dollar slipped lower against the greenback as oil prices again slipped near 11-year lows and investors hoped for more official action to support growth in China. To the upside, immediate resistance can be seen at 1.3922. To the downside, immediate support level is located at 1.3885 levels.AUD/USD is supported around 0.7240 levels and currently trading at 0.7253 levels. It hit session high at 0.7256 and made session lows at 0.7247 levels. The Australian dollar edged lower against US dollar on Monday after US dollar strengthened against commodities related currencies. Global equities were lower on Monday, pressured by another downdraft in oil prices and worries over growth in China’s economy, while holidays in a number of markets muted trading volumes. A weak batch of industrial profits raised concerns about China’s economy and sent Chinese stocks lower by almost 3 percent, their biggest drop in a month. Crude again moved within sight of an 11-year low, with Brent at $36.71 and U.S. crude at $36.83 as last week’s short-covering dried up and players worried that prices had more room to swoon. To the upside, immediate resistance can be seen at 07273. To the downside, immediate support level is located at 07240levels.Equities RecapWall Street fell on Monday, hurt by a steep drop oil prices as well as a dip in Apple shares, pushing the S&P 500 back into negative territory for 2015.Dow Jones closed down by 0.14 percent, S&P 500 ended down by 0.21 percent, Nasdaq finished the day down by 0.15 percent.Treasuries RecapU.S. Treasuries prices rose on Monday in light and choppy trading after a solid two-year auction as falling oil prices stoked demand for longer-dated bonds.Benchmark 10-year U.S. Treasury notes were last up 4/32 in price to yield 2.230 percent, down from 2.243 percent on Thursday.The 30-year bond was last up 11/32 in price to yield 2.945 percent, down from 2.963 percent.U.S. two-year notes were near flat in price to yield 1.014 percent, up from 1.002 percent on Thursday.Commodities RecapOil fell more than 3 percent on Monday, with global benchmark Brent back near 11-year lows as last week’s short-covering dried up and players worried that crude prices had more room to swoon in the New Year.Brent settled down $1.27 at $36.62 a barrel, after falling to a session low of $36.52. It hit $35.98 on Tuesday, its lowest since 2004.WTI finished the session down $1.29 at $36.81, after an intraday low at $36.66.Gold fell on Monday in line with a retreat in oil prices, giving up some of last week’s gains, but moves were range bound in thin liquidity in a holiday-shortened week.Spot gold was down 0.85 percent at $1,066.35 an ounce at 1:57 p.m. EST (1857 GMT), while U.S. gold futures for February delivery settled down $7.60 an ounce, or 0.7 percent, at $1,068.30.
The material has been provided by InstaForex Company – www.instaforex.com