29 Dec: US$ soft into year-end as traders bet on broad based interest rate increases in 2018. German CPI ahead.

By | December 29, 2017

 

The US$ remained under pressure on Thursday following the release of the weekly jobs data, with the DXY hitting a 3-1/2 week low of 92.57 as traders speculate that more major central banks will begin reducing monetary stimulus in 2018 because of faster global economic growth. The US Initial jobless claims were unchanged at 245k in the week ended December 23, above expectation of 241k. Earlier in the day, the ECB monthly bulletin noted that the economic recovery in the EU is solid and broad based although inflation remains subdued but is expect to pick up gradually through 2018. In the meantime a substantial degree of monetary accommodation is still needed to push inflation towards the required targets and the ECB maintained the option to extend the asset purchase program beyond September 2018 if necessary. Stocks were unchanged, while the metals and WTI remained firm, but without doing a great deal.

Looking ahead to today, the last trading day of the year will end with a bit of a whimper in terms of data. The first cabs off the rank will be the Australian New Home Sales and Private Sector Credit figures, both for November. The main event in Europe will be the German Provisional CPI/HICP for December (CPI; exp 0.5%mm, 1.5%yy, HICP; exp 0.45mm, 1.6% yy,) while the US will only have the CFTC net positions to contend with. All up a pretty quiet run in to the weekend is likely. Hoping that 2017 was a good one for you and that 2018 will be even better!! HNY.

CURRENCIES
EURUSD: 1.1942
Res  1.1960  1.1980  1.2005
Sup  1.1935  1.1915  1.1900
USDJPY: 112.87
Res  113.05  113.35  113.65
Sup  112.65  112.30  112.00
GBPUSD: 1.3442
Res  1.3470  1.3520  1.3550
Sup  1.3410  1.3370  1.3330
USDCHF: 0.9789
Res  0.9810  0.9830  0.9850
Sup  0.9770  0.9750  0.9735
AUDUSD: 0.7794
Res  0.7810  0.7825  0.7840
Sup  0.7770  0.7750  0.7730
NZDUSD: 0.7086
Res  0.7100  0.7120  0.7140
Sup  0.7065  0.7050  0.7035
INDICES / COMMODITIES
S&P: 2685
Res  2690  2695  2700
Sup  2680  2675  2670
DJI: 24804
Res  24890  25000  25100
Sup  24720  24625  24525
ASX SPI: 6034
Res  6075  6100  6125
Sup  5995  5970  5945
XAUUSD: 1295
Res  1300  1305  1310
Sup  1290  1285  1280
XAGUSD: 16.86
Res  16.95  17.10  17.25
Sup  16.75  16.65  16.55
WTI: 59.89
Res  60.00  61.10  61.80
Sup  59.60  59.30  59.00