10:53 PM · 12 December 2022

Daily summary: Dollar gains ahead of highly-anticipated CPI report

  • European indices finished today's session mostly lower, with DAX closing down 0.45% at around 435 points, dragged by materials and real estate stocks, as investors remain cautious ahead of tomorrow’s US CPI data and upcoming FED and ECB decisions.
  • Upbeat sentiment prevails on Wall Street, where Dow Jones rose nearly 1.0%, while S&P500 and Nasdaq jumped 0.70% and 0.45% respectively as the New York Fed report for November showed that respondents see one-year inflation running at a 5.2% pace, the lowest since August of 2021. 

  • The yield on the US 10-year Treasury note is moving towards 3.6%, extending its rebound from the three-month low of 3.4% touched on December 7th ahead of key inflation data. Consumer prices are expected to have slowed for the fifth straight month in November, consistent with fresh inflation expectations figures, however concerns of unsustainable price growth remain as producer prices surprised on the upside.

  • Oil prices bounced off recent lows as China has signaled a softening stance in the fight against the coronavirus, raising hopes for a swiffer rebound in economic activity, which should boost demand. At the same time, the Keystone Pipeline remained shut.

  • NATGAS launched a new week with a massive bullish price gap, amid forecasts for much colder weather and higher heating demand than previously expected. However bullish momentum eased later in the session as buyers failed to break above key resistance at $7.00.

  • Precious metals pulled back on Monday amid a stronger dollar. Gold retreated to $1780 level, while silver is moving towards major support at $23.00. 

  • The dollar index cut early losses and jumped above 105 on Monday following fresh inflation expectations data. Currently GBP and USD are the best performing currencies while AUD and JPY lag the most.

  • Downbeat sentiment prevails on the crypto currency market following  Binance’s “proof of reserve” report, which was not received well by investors. Bitcoin fell below $17000, Ethereum oscillated around $1250, while Binancecoin fell 4.0%.

USDJPY pair jumped above key resistance at 137.50 which is marked  with 200 SMA (red line) and previous price reactions. The nearest support and resistance levels are determined by Fibonacci retracements of the upward wave launched in January 2021. Source: xStation5

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