Daily summary: EURUSD drops below 1.09 on Fed speak, flash PMIs

7:53 PM 15 December 2023
  • Wall Street indices trade mostly lower today - S&P 500 drops 0.3%, Dow Jones is down 0.1% and Nasdaq trades flat. Small-cap Russell 2000 slumps over 1%
  • European stock market indices traded mixed today - UK FTSE 100 dropped 1%, French CAC40 gained 0.3%, Dutch AEX moved 0.4% higher and Spanish Ibex dropped 0.7%. German DAX traded flat
  • ECB Muller said that markets are optimistic if they are expecting rate cuts in the first half of 2024
  • Fed Williams said that it is premature to be thinking about a March rate cut and rate cut altogether at this point as uncertainty around economy and inflation is still there
  • Fed Bostic said that  US economy is still ways from Fed's 2% inflation target but progress has been faster than he expected. Bostic expects PCE inflation to be at 2.4% by the end of next year
  • EPFR data showed 20th consecutive week of emerging debt outflows, the longest such streak since January 2009. EPFR data also showed the first weekly outflow from cash in eight weeks
  • Russia will cut oil export duty to zero, starting from January 1, 2024
  • Flash US manufacturing PMI dropped from 49.4 to 48.2 in December (exp. 49.1) while services PMI moved higher from 50.8 to 51.3 (exp. 50.5)
  • Flash German manufacturing PMI moved from 42.6 to 43.1 in December (exp. 43.4) while services PMI dropped from 49.6 to 48.4 (exp. 49.8)
  • Flash French manufacturing PMI dropped from 42.9 to 42.0 in December (exp. 43.2) while services PMI dropped from 45.4 to 44.3 (exp. 46.0)
  • Flash euro area manufacturing PMI stayed unchanged at 44.2 in December (exp. 44.5) while services PMI dropped from 48.7 to 48.1 (exp. 49.0)
  • Flash UK manufacturing PMI dropped from 47.2 to 46.4 in December (exp. 47.5) while services PMI climbed from 50.9 to 52.7 (exp. 51.0)
  • Canadian annualized housing starts for November came in at 212.6k (exp. 260k)
  • US industrial production increased 0.2% MoM in November (exp. 0.3% MoM) while manufacturing output was 0.3% MoM higher (exp. 0.5% MoM). Capacity utilization ticked lower from 78.9 to 78.8% (exp. 79.1%)
  • New York Fed manufacturing index slumped from +9.1 to -14.5 in December (exp. 1.9)
  • Cryptocurrencies traded lower today - Bitcoin dropped 2.5%, Ethereum and Dogecoin traded 3.2% lower while Ripple declined 1.7%
  • Energy commodities trade mixed - oil trades flat while US natural gas prices rally 5%
  • Precious metals pull back amid USD strengthening - gold drops 0.7%, silver declines 1.3% while platinum plunges 1.9%
  • CAD and USD are the best performing G10 currencies, while EUR and GBP lag the most

EURUSD bulls failed to hold onto recent gains and the pair experienced a quick reversal after failing to break above the 1.10 resistance zone. The main currency pair is testing the 1.09 area today. Source: xStation5

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