Market Roundup
- U.S. jobless claims fall in latest week, 267k vs 270k forecast, 272k previous.
- US continuing claims 2.195m vs 2.210m forecast 2.242 previous.
- Oil continues recovery above USD 37 as supply tightens, dollar slips in quiet trade.
- Wall Street sees little cheer on Christmas Eve, equities down slightly.
- Long-dated yields fall from 1-wk highs on year-end caution.
Looking Ahead – Economic Data (GMT)
- 23:30 Japan All House hold Spending YY* Nov forecast-2.4%, -2.4%-previous
- 23:30 Japan All House hold Spending MM* Nov forecast -0.3%, -0.7%- previous
- 23:30 Japan CPI, Core Nationwide YY* Nov *forecast 0%, -0.1%- previous
- 23:30 Japan CPI, Overall Nationwide* Nov 0.3%- previous
- 23:30 Japan CPI Core Tokyo YY*Dec forecast 0.1%, 0%- previous
- 23:30 Japan CPI, Overall Tokyo*Dec 0.2%- previous
- 23:30 Japan Jobs/Applicants Ratio*Nov forecast 1.25, 1.24- previous
- 23:30 Japan Unemployment Rate* Nov forecast 3.2%, 3.1%- previous
- 23:50 Japan Foreign Bond Investment * w/e 319.4b- previous
- 23:50 Japan Foreign Invest JP Stock* w/e -488.0b- previous
- 05:00 Japan Construction Orders YY*Nov -25.2%- previous
- 05:00 Japan Housing Starts YY* Nov forecast 1%, -2.5%- previousMonday Dec 28
- 23:50 Japan Industrial output prelim mm Nov 1.4%- previous
- 23:50 Japan IP Forecast 1 Month Ahead* Nov 0.2%- previous
- 23:50 Japan IP Forecast 2 Month Ahead*Nov -0.9%- previous
- 23:50 Japan Retail Sales YY*Nov 1.8%- previous
- 01:30 Japan Overtime Pay* Nov 1.2%-previous
Looking Ahead – Events, Other Releases (GMT)
- No Significant Events
Currency SummariesEUR/USD is likely to find support at 1.0885 levels and currently trading at 1.0953 levels. The pair has made session high at 1.0966 and hit lows at 1.0930 levels. The dollar fell against euro on Thursday, as traders continued booking profit on bullish bets on the greenback following the U.S. interest rate hike last week. Trading volumes were very less, with very few staffing at bank trading desks in London and New York ahead of Christmas Day on Friday, when U.S. and European financial markets will be closed. Despite weak dollar during the week , most analysts anticipate dollar to advance in the long term as the Federal Reserve is expected to continue to raise rates, possibly four times in 2016. The euro rose 0.4 percent against the dollar to $1.0953 but dipped 0.1 percent to 131.75 yen. To the upside, immediate resistance can be seen at 1.0968. To the downside, immediate support level is located at 1.0925 levels.GBP/USD is supported in the range of 1.5570 levels and currently trading at 1.5578 levels. It reached session high at 1.5621 and dropped to session low at 1.5570 levels. Sterling rose to its highest in almost 2-weeks against the dollar on Thursday after traders exited trades after booking profit on bullish bets on the greenback following the U.S. interest rate hike last week. Bank of England policymakers reckon inflation is to remain near zero for the next few months after dipping into negative territory for the first time in half a century earlier this year, keeping pressure off them to raise UK rates any time soon. Sterling hit $1.4944 the highest since December 12th, before easing towards $1.4925 levels during late US trading hours. To the upside, immediate resistance can be seen at 1.4944. To the downside, immediate support level is located at 1.4905 levels. USD/CAD is supported at 1.3870 levels and is trading at 1.3920 levels. It has made session high at 1.3945 and lows at 1.3918 levels. The Canadian dollar strengthened modestly against a weaker U.S. dollar on Thursday, helped by rebound in the price of oil as it was poised for its first weekly advance since October. The loonie, as Canada’s currency is colloquially known, traded in a tight range early in the last session before Christmas. The currency’s strongest level of the session was C$1.3841, while its weakest was C$1.3873. Oil edged further above $37 a barrel but remained within sight of an 11-year low reached earlier this week, as signs of a tighter U.S. market raised hopes a supply glut would ease. U.S. crude prices were up 0.77 percent to $37.79 a barrel, while Brent crude added 0.59 percent to $37.58. To the upside, immediate resistance can be seen at 1.3872. To the downside, immediate support level is located at 1.3834 levels.AUD/USD is supported around 0.7242 levels and currently trading at 0.7275 levels. It hit session high at 0.7279 and made session lows at 0.7260 levels. The Australian dollar was largely sidelined on Thursday in light pre-holiday trade, but was on track to post solid gains for the week due to a hunt for yield. The Australian dollar was steady at $0.7240, from a trough of $0.7209 on Wednesday. It has rallied 2 percent since touching a low last week. Resistance was found at $0.7250 with a stronger barrier near $0. of the strength came from heavy buying interest from real money accounts, suggesting carry trade demand is still in play for some. Australian government bond futures were very quiet, with the three-year bond contract steady at 97.940. The 10-year contract was down 1 tick at 97.1450, while the 20-year contract was off half a tick at 96.6550. To the upside, immediate resistance can be seen at 0.7274. To the downside, immediate support level is located at 0.7254 levels.Equities RecapWall Street finished a little lower on Thursday as a drop in energy stocks kept a lid on holiday cheer during a shortened Christmas Eve trading session.The Dow Jones industrial average lost 0.29 percent to end at 17,552.17, S&P 500 closed down 0.16 percent, Nasdaq Composite added 0.05 percent at close.Treasuries RecapU.S. long-dated Treasury yields fell on Thursday after hitting one-week highs in the previous session as traders neutralized positions on caution ahead of the Christmas holiday and year-end.Benchmark 10-year U.S. Treasury notes were last up 5/32 in price to yield 2.245 percent, from a yield of 2.264 percent late Wednesday. Benchmark yields hit a session low of 2.241 percent after hitting a nearly one-week high of 2.280 percent Wednesday.U.S. two-year notes were last down 1/32 in price to yield 1.007 percent, from a yield of 0.985 percent late Wednesday.Commodities RecapGold recovered some lost ground of the past two sessions on Thursday, while silver hit a three-week high amid low volumes as the dollar softened ahead of the Christmas holiday break, and a recovery in oil prices helped sentiment.Spot gold was up 0.54 percent at $1,076.3 an ounce at 12:43 p.m. (1743 GMT), after losing 0.7 percent in the last two sessions.U.S. gold futures for February delivery settled at $1,075.9 per ounce, up 0.71 percent. Oil edged further above $38 a barrel on Thursday before retreating as it remained within sight of an 11-year low reached this week, as traders put positions in order ahead of an expected week of low liquidity ahead.Brent settled up 53 cents at $37.89 a barrel as of 11:48 a.m. EST. It fell to $35.98, an 11-year low, on Tuesday. U.S. crude settled up 60 cents at $38.10 after gaining more than 8 percent this week.
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