3 Jan: Gbp, Eur lead the way as US$ reaches 3 month lows. Gold rally continues. FOMC Minutes today.

By | January 3, 2018

 

The US$ has generally remained under pressure on Tuesday, trading mostly on the back of the PMIs with little other data to provide any direction. From the EU, the PMI manufacturing was finalized at 60.6 in December, unrevised from the previous month, while the Germany PMI manufacturing was finalized at 63.3, also unrevised. The French PMI manufacturing was revised lower to 58.8. The only real move came in the UK Mfg PMI which fell to 56.3 in December, down from 58.2 and missed expectation of 57.9 but at the same time remains well above the long term trend and thus underpinned Cable through the day. Commodities continue to trade on a firm note, with Gold now enjoying its longest winning streak since the end of the gold standard in 1971, underpinned largely by the weaker dollar. WTI is unchanged, but not before reaching its highest level since 2015. The stock markets have had a positive session to start the year, underpinned by gains in the big technology and consumer discretionary stocks

Wednesday will see little economic data from Asia apart from the Australian HIA New Home Sales, or Europe, where the German Unemployment (exp -11K, 5.5%) and the UK Construction PMI will be the main focus. Things will liven up in the US session though with the release of the December ISM Mfg PMI (exp 58.1) and Prices Paid (exp 65.0). These figures will be closely followed by the November Construction Spending and Total Vehicle Sales, which in turn will arrive ahead of the latest FOMC Minutes, at which the Fed are likely to remain constructive about the near-term inflation outlook but less so when considering the longer term.  In other data, oil traders will be looking to the API weekly Crude Oil Stock Inventory, while also keeping an eye on the current political tensions in Iran.

CURRENCIES
EURUSD: 1.2058
Res  1.2070  1.2090  1.2120
Sup  1.2040  1.2025  1.2000
USDJPY: 112.27
Res  112.50  112.80  113.00
Sup  112.05  111.95  111.70
GBPUSD: 1.3596
Res  1.3600  1.3630  1.3655
Sup  1.3460  1.3425  1.3400
USDCHF: 0.9717
Res  0.9750  0.9780  0.9800
Sup  0.9700  0.9670  0.9650
AUDUSD: 0.7832
Res  0.7845  0.7865  0.7885
Sup  0.7815  0.7800  0.7780
NZDUSD: 0.7107
Res  0.7130  0.7145  0.7165
Sup  0.7095  0.7075  0.7055
INDICES / COMMODITIES
S&P: 2693
Res  2700  2705  2710
Sup  2685  2680  2675
DJI: 24766
Res  24825  24895  25000
Sup  24705  24655  24575
ASX SPI: 6027
Res  6035  6055  6080
Sup  6000  5985  5965
XAUUSD: 1318
Res  1320  1325  1330
Sup  1315  1310  1305
XAGUSD: 17.18
Res  17.20  17.30  17.40
Sup  17.10  17.00  16.90
WTI: 60.37
Res  60.70  61.00  61.50
Sup  59.90  59.40  59.00