Euro Resistance Near $1.1000 Continuing

December 29, 2015

The dollar is unchanged against the euro, Swiss franc, Chinese renminbi, and Japanese yen.  The euro’s uptrend has met repeated resistance around $1.097. Spain’s unsettled political outlook has been a depressant. The greenback is 0.2% firmer against the loonie and sterling but 0.3% softer relative to the Australian and New Zealand currencies.

Following a 2.0%plus slide on Monday, the Russian ruble fell by a further 0.9% against the dollar to a fresh 2015 low of 72.846.

West Texas Intermediate crude oil and Comex gold are 0.3% and 0.1% firmer at $36.93 per barrel and $1,069.85 per troy ounce.

Among 10-year sovereign debt yields, the British gilt is down two basis points, the Japanese JGB is steady and the German bund has edged up a basis point.

A 1.5% advance in the German Dax has led European stocks higher.  Equities are up 1.4% in Italy, 1.2% in France, 0.9% in Spain and Switzerland but just 0.3% in Britain.  In earlier trading around the Pacific Rim, share prices rose 1.2% in Australia, 1.0% in New Zealand, 0.9% in China, 0.5% in Singapore, 0.3% in Indonesia and 0.2% in India but fell 0.8% in Taiwan.

There’s been very little data out overnight for markets to trade on.  Investors await several U.S. reports due later today, including the Case-Shiller house price index, consumer confidence, the monthly trade deficit, and weekly Redbook-compiled chain store sales.

Italian business sentiment fell 1.3 points to a reading of 105.8 in December.  Consumer confidence was down 0.8 points at 117.6, while factory-sector sentiment lost 0.3 points to 104.1.  The results were below street expectations.

Sweden’s trade deficit of SEK 5.2 billion in November compares to SEK 1.7 billion in October and SEK 0.5 billion a year earlier.  The year-to-date trade balance is a surplus of SEK 13.4 billion, 4.3% narrower than a year earlier on export growth of 4.6% and similar import growth of 4.7%.

Spanish retail sales grew 3.3% on year in November, down from a 6.0% rise in the year to October.

Data announced in Asia overnight showed

  • A 7.7% on-year decline in Singaporean producer prices in November versus a 12-month 8.7% slide in October.
  • On-year growth in Thai industrial production of 0.1% in November and 0.2% in January-November.
  • A 1.4% on-year decline in Chinese corporate earnings in November versus a year-to-date decrease of 1.9% and a 4.6% slide between October 2014 and October 2015.
  • A greater-than-forecast $1.93 billion Filipino trade deficit in October.

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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