Market Roundup

•  German GDP (YoY) (Q3) 2.5%,2.5% forecast, 2.5% previous

• German GDP (QoQ) (Q3) 1.7%,1.8% forecast, 1.8% previous

•German Dec GfK German Consumer Climate  -1.6 , -0.5 forecast, 0.9 previous

•Sweden Interest Rate Decision 0.00%,0.00% forecast, 0.00% previous

•Sweden Oct Household Lending Growth (YoY) 6.6% forecast, 6.5% previous

•Italian Oct Trade Balance Non-EU   3.59B, 1.67B previous

Looking Ahead Economic Data (GMT)

•No economic data

Looking Ahead – Events, Other Releases (GMT)

•17:00 BoE Gov Bailey Speaks

Fxbeat

EUR/USD: The euro initially dipped on Thursday but recovered most of the ground as investors kept their focus on messaging from the European Central Bank. Trading thinned on Thursday as U.S. traders were out for the Thanksgiving holiday and bond yields dipped. Focus was on the ECB, which published the accounts of its October meeting, which had caused turmoil in the markets as President Christine Lagarde was not seen as pushing back enough on money market bets on 20 basis points of rate hikes from the bank by the end of next year. Immediate resistance can be seen at 1.1258(38.2%fib), an upside break can trigger rise towards 1.1285 (9DMA).On the downside, immediate support is seen at 1.1190(23.6%fib), a break below could take the pair towards 1.1145(Lower BB).

GBP/USD: The British pound edged lower on Thursday as dollar was supported by expectations of a rate hike in the United States, while investors awaited for a Bank of England Governor’s speech later in the day. The BoE wrong-footed many investors when it kept policy steady at record lows in its November meeting, following comments from Andrew Bailey in October that policymakers “will have to act” to head off inflation. The pound dipped versus the dollar to $1.3001 at 13:30 GMT. Immediate resistance can be seen at 1.3356(Daily high), an upside break can trigger rise towards 1.3401(38.2%fib).On the downside, immediate support is seen at 1.3311(23.6%fib), a break below could take the pair towards 1.3261 (Lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as investors bet that the U.S. Federal Reserve will tighten monetary policy faster than its peers. Fed minutes showed on Wednesday that various policymakers at the U.S. central bank would be open to speeding up the taper of their bond-buying programme and raising interest rates more quickly if high inflation held. The market is fully priced for a first quarter point hike by June, with strong odds it could be delivered as soon as May. Immediate resistance can be seen at 0.9367(23.6 % fib), an upside break can trigger rise towards 0.9388(Higher BB).On the downside, immediate support is seen at 0.9320 (38.2%fib), a break below could take the pair towards 0.9300(9DMA ).

USD/JPY: The dollar dipped against the Japanese yen on Thursday but held near recent high on market expectations that the U.S. Federal Reserve will raise rates sooner than other major central banks. Minutes from the Fed’s Nov. 2-3 meeting boosted the dollar on Wednesday as they indicated the Fed had become more concerned about rising inflation. Various policymakers said they would be open to speeding up the taper of their bond-buying programme if high inflation held and move more quickly to raise interest rates. But on Thursday the dollar’s upward trend  which has seen it gain around 2.7% this month paused slightly. Strong resistance can be seen at 115.51 (23.6% fib), an upside break can trigger rise towards 116.00 (Psychological level).On the downside, immediate support is seen at 114.98(38.2%fib), a break below could take the pair towards 114.55 (50% fib).

Equities Recap

European shares rose on Thursday as  rebound in Hardhit technology actions, and an increase in the French spirits  manufacturer Remy Cointreau helped to compensate for concerns to raise coronavirus cases throughout the continent.

At (GMT 13:30 ),UK’s benchmark FTSE 100 was last trading up at 0.29percent, Germany’s Dax was up by 0.22 percent, France’s CAC finished was up by 0.35  percent.

Commodities Recap

Gold prices edged up on Thursday buoyed by persistent inflation concerns, with further gains in bullion clipped by expectations that the Federal Reserve may hasten its monetary tightening to tame rising prices.

Spot gold rose 0.12% to $1,790.70 per ounce by 1250 GMT, recovering some ground after slipping to its lowest since Nov. 4 on Wednesday. U.S. gold futures gained 0.4% to $1,791.40.

Oil prices were little changed on Thursday with investors waiting to see how major producers respond to the emergency crude release by major consuming countries designed to cool the market, even as data pointed to healthy U.S. fuel demand.

Brent crudefutures slipped 3 cents to $82.22 a barrel at 0351 GMT, after losing 6 cents on  Wednesday.

U.S. West Texas Intermediate (WTI) crude futures fell 9 cents, or 0.1%, to $78.30 a barrel, extending an 11-cent loss on Wednesday.


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