The Greenback carried on with its positive momentum from earlier in the day while sterling was boosted by a glimmer of hope for a Brexit deal.
Of course the star of the show was bitcoin as it caught the attention of more and more financial market junkies by surging to yet another set of all-time highs.
- U.S. Challenger job cuts up 30% year-over-year in Nov
- Canadian building permits increased by 3.5% vs. projected 1.7% gain
- Canadian Ivey PMI down from 63.8 to 63.0 vs. 62.7 forecast
- U.S. initial jobless claims at 236K vs. 239K consensus
- U.S. consumer credit rose from $19.2B to $20.5B vs. $17.4B forecast
- New Zealand manufacturing sales up 0.5% vs. earlier 3.4% rise
Brexit deal within reach?
Following earlier reports that the deadline on Brexit progress could be pushed back, the next set of headlines suggested that negotiations are starting to take some steps forward.
EU Commissioner Oettinger shared that progress is being made in Brexit talks, particularly on the “divorce bill” that the U.K. will have to pay.
Prime Minister May is said to be prepping for a meeting in Brussels before the end of this week, presumably to iron out the kinks in a potential Brexit deal. As it turned out, No. 10 had been burning the midnight oil to come to terms with the DUP on the Irish border issue.
Meanwhile, EU President Tusk scheduled an early morning statement, leading many to speculate that he will say the deal is signed, sealed, delivered. Others believe that he could merely provide a situational update on negotiations. Either way, save your “The Crown” season two marathon plans for later because this might prove more gripping.
Mixed U.S. data
Uncle Sam’s numbers had a mix of upside and downside surprises, with yet another jobs report signaling a potential NFP miss.
The Challenger, Gray & Christmas job cut report showed a 35,038 increase for November, marking a 30.1% increase from the same month last year. Compared to the previous month, this amounts to a 17% gain in layoffs.
On the flip side, the initial jobless claims report printed a slightly better than expected read of 236K versus the projected 239K increase in the number of folks claiming unemployment benefits for the first time.
Consumer credit jumped from $19.2 billion to $20.5 billion instead of falling to the projected $17.4 billion figure, a sign that financial confidence is improving among most Americans. This also hints of a possible pickup in consumer spending throughout the holiday season.
All three equity indices closed in the green for the session:
- Dow 30 index is up 70.57 points to 24,211.48 (+0.29%)
- S&P 500 index is up 7.71 points to 2,636.98 (+0.29%)
- Nasdaq is up 36.47 points to 6,812.84 (+0.54%)
Major Market Mover(s):
The Greenback was still one of the currencies leading the pack for the session as traders are probably adjusting positions ahead of the NFP and reacting to Congress’ moves to avert a government shutdown.
USD/JPY is up from 112.69 to a high of 113.11, USD/CHF rallied from .9915 to a high of .9946, EUR/USD is down to 1.1773, and USD/CAD is up to the 1.2850 minor psychological mark.
The pound established clearer direction towards the end of the U.S. session as sentiment towards Brexit turned more positive.
GBP/USD recovered from a low of 1.3320 to a high of 1.3487, GBP/JPY jumped back to the 152.50 area, EUR/GBP slipped below the .8775 support level to a low of .8737, and GBP/CAD is up to a high of 1.7324.
Watch Out For:
- 11:50 pm GMT: Japanese final GDP q/q (upgrade from 0.3% to 0.4% expected)
- 11:50 pm GMT: Japanese current account balance (wider surplus of 1.93T JPY from 1.84T JPY expected)
- 12:00 am GMT: Japanese average cash earnings y/y (0.8% expected, 0.9% previous)
- 12:30 am GMT: Australian home loans (-2.2% expected, -2.3% previous)
- Tentative: Chinese trade balance ($34.9B expected, $38.2B previous)