German private sector surge reaches four-year minimum in December
In December, Germany's private sector expansion speeded down to a four-year minimum, as a survey disclosed…
News to trade on December 5
- Yesterday's tweet by US president Donald Trump renewed fears about reaching the trade deal with China. "We are either going to have a REAL DEAL with China, or no deal at all”, - said Mr. Trump. In case of no deal, the US will charge a huge number of tariffs against Chinese production. It increased the risk aversion across the financial markets in Asia.
- During the Asian session, the Australian dollar fell on the release of the weak GDP. The Australian economy grew by 0.3% in the 3rd quarter, a lower level than the expected 0.6%. The decline happened due to the increased household consumption, driven by spending on food and housing. In addition, the household saving ratio declined to 2.4% in the 3rd quarter. This is the lowest saving rate since December 2007.
AUD/USD has already tested the support at 0.7285 on the news. The strong USD can make the pair retest this level. If the risk-on sentiment across the equity markets increases due to more certainty in the US-China trade deal, the aussie will rise towards the resistance at 0.7370.
- EUR/USD fell as the US Dollar had strengthened yesterday after the optimistic comments by the FOMC member John Williams. He anticipates further interest rate hikes by Fed.
After that, the risk-off sentiment contributed to the rise of the greenback. As for the euro, the Italian budget news keeps triggering investors and traders.
If the EUR is supported by the positive news from Italy, EUR/USD can rise towards the resistance at 1.1391. Otherwise, if the USD keeps gaining, the pair can stick below the support at 1.1329.
- The European Central Justice announced on Tuesday that the UK could withdraw the Article 50 anytime. That means the country can move out of Brexit and stay within the European Union. However, the British Prime Minister said the country would not quit Brexit under any circumstances. In addition, May lost the three key votes yesterday. Two of them were forcing her to publish secret government legal advice on her Brexit deal. The prime minister said she would release it on Wednesday.
If more uncertainties on the Brexit agreement come out, GBP/USD can stick below the support at 1.2694. In case of more certainty, the pair will rise towards the resistance at 1.2778.
- The Bank of Canada rate statement is scheduled at 17:00 MT time. We anticipate the central bank to leave the rates unchanged this time, however, the Governor Stephen Poloz and his colleagues may provide hawkish statements, which may signal the possible increase in the rate in January. In addition, the recently-signed USNCA agreement supports the BOC's hawkish view. If the BOC delivers supportive comments for the CAD, USD/CAD will fall towards the support at 1.3195. If the central bank’s statement disappoints investors and the USD is stronger, USD/CAD will stick above the resistance at 1.3277.
Follow us for more news!
Similar
Weekly CryptoNews
Find out what is going on in the world of crypto and blockchain from the cryptonews by FBS!
American import prices demonstrate the biggest dive for more than three years
In November, American import prices went down by the most for more than three years due to the fact that the cost of petroleum products decreased and a strong evergreen buck suppressed prices of other goods, indicating descending imported inflation in…
Latest news
Weekly CryptoNews
Did Bitcoin manage to recover and what was the hottest news in the crypto and blockchain world? Read and find out!
Most Asian stocks post strong revenues with Nikkei rising more than 2%
On Monday, Asian stocks traded mostly higher, with Shanghai bucking the trend because centrist Emmanuel Macron fully matched opinion survey hopes and left anti-EU far-right nominee Marine Le Pen behind…
Japan real wages surge is slowest in almost two years
Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…
Deposit with your local payment systems
