Top Daily Economic News(DECEMBER11, 2018)

No: 220

Date: DECEMBER11 2018

 

Daily World Economic and Financial News

(CNBC): DECEMBER11, 2018 ---- The U.S. dollar came under some pressure after data showed U.S. job growth slowed in July on Friday, while slipping against the yuan after the Chinese central bank acted to stabilize the currency by stemming speculation against it. The dollar eased against a basket of currencies after the U.S. government reported a braking of domestic job growth, as employment in the transportation and utilities sectors fell.

(CNBC): DECEMBER11, 2018 ---- The pound languished near 20-month lows against the dollar on Tuesday after British Prime Minister Theresa May postponed a crucial vote on her Brexit deal, raising the risk of a chaotic exit from the European Union.

May on Monday postponed a parliamentary vote, which was due to take place on Tuesday, on her Brexit deal to seek more concessions. The move stoked more uncertainty as Britain now faces Brexit without a deal, a last-minute agreement or another EU referendum.

Sterling crawled up 0.15 percent to $1.2578 after slumping 1.3 percent the previous day, when the currency brushed $1.2507, its lowest since April 2017.

The pound's slide was a boon for the dollar, which rallied back from a 2-1/2-week low against a basket of currencies initially driven by a growing view the Federal Reserve could pause its rate hike cycle sooner than previously thought.

(CNBC): DECEMBER11, 2018 ---- The dollar index, a measure of the greenback's strength versus a group of six major peers, was 0.13 percent lower at 97.092 after rallying 0.75 percent on Monday. At one stage in overnight trade it had fallen to 96.364, its lowest since Nov. 22.

(CNBC): DECEMBER11, 2018 ---- The euro nudged up to $1.1367 after shedding 0.2 percent on Monday.

(CNBC): DECEMBER11, 2018 ----The dollar dipped 0.26 percent to 113.03 yen after advancing 0.5 percent overnight.

(CNBC): DECEMBER11, 2018 ----Indian rupee forwards fell more than 1 percent on Monday, posting their biggest daily slump in more than five years.

(CNBC): DECEMBER11, 2018 ---1-The Australian dollar rose 0.19 percent to $0.7203 after slipping on Monday to a one-month low of $0.7170.

(REUTERS): DECEMBER11, 2018 ----Oil prices edged up on Tuesday after Libya’s National Oil Company declared force majeure on exports from the El Sharara oilfield, which was seized at the weekend by a local militia group Despite that, overall sentiment on oil prices remained weak amid worries over global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.  International Brent crude oil futures LCOc1 were at $60.19 per barrel at 0336 GMT, up 19 cents, or 0.3 percent, from their last close.  U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $51.16 per barrel, up 16 cents, or 0.3 percent.  Libya’s National Oil Company (NOC) late on Monday declared force majeure on exports from the El Sharara oilfield, the country’s biggest, which was seized at the weekend by a militia group.

Despite that, overall sentiment on oil prices remained weak amid worries over global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.

(REUTERS): DECEMBER11, 2018 ----International Brent crude oil futures LCOc1 were at $60.19 per barrel at 0336 GMT, up 19 cents, or 0.3 percent, from their last close. Sponsored U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $51.16 per barrel, up 16 cents, or 0.3 percent.

(REUTERS): DECEMBER11, 2018 ----Libya’s National Oil Company (NOC) late on Monday declared force majeure on exports from the El Sharara oilfield, the country’s biggest, which was seized at the weekend by a militia group.

(REUTERS): DECEMBER11, 2018 ----The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.

(WSJ): DECEMBER11, 2018 ----Investors’ retreat from U.S. stocks turned into a stampede Friday, with major indexes suffering declines of more than 4% for the week that made it the worst December start since 2008. The Dow fell more than 550 points amid trade-related tensions.

(WSJ): DECEMBER11, 2018 ----The Trump administration’s point man on U.S.-China trade negotiations said the U.S. would hold fast to its 90-day deadline for the conclusion of a lasting agreement, adding that the U.S. would impose punishing tariffs on Chinese imports if none is reached.

(CNBC): DECEMBER11, 2018 ---- Gold prices edged higher on Tuesday, supported by hopes that the U.S. Federal Reserve could pause its rate hike cycle sooner than expected and as the dollar slipped after the previous session's rally.  Spot gold was up 0.2 percent at $1,246.62 per ounce, as of 0430 GMT. It touched its highest in nearly five months at $1,250.55 in the prior session.  U.S. gold futures were 0.2 percent higher at $1,251.4 per ounce.

 

GBP/USD PAIR ANALYSIS

1. Fundamental Overview

GBP/USD is currently grinding its way back above 1.2580 following Monday's decline from the 1.2770 region, fueled by the news that Prime Minister Theresa May would pulling her Brexit Withdrawal Proposal from the parliamentary vote that was slated for today in the UK's House of Commons.

The GBP/USD pair bounced from the mentioned low but just in corrective mode after hitting 1.25, and by no means changing the negative technical stance. Having spent the second half of the last week struggling with a daily descendant trend line, it finally fell below it, now trading over 100 pips from it. In the 4 hours chart, a bearish 20 SMA converges with the mentioned trend line, as technical indicators maintain their downward slopes around oversold readings, signaling strong selling interest. The next big support, should the 1.2500 figure gets broken, is the 1.2330/5 price zone, where the pair has multiple weekly lows and highs back from 2016 and 2017.  

Support levels: 1.2500 1.2465 1.2430

Resistance levels: 1.2590 1.2640 1.2675

GBP/USD PRICE SENTIMENT

 

TREND INDEX

OB/OS INDEX

VOLATILY INDEX

15M

Bearish

Neutral

Low

1H

Bearish

Overbought

Low

4H

Bearish

Neutral

High

1D

Strongly Bearish

Neutral

Low

1W

Bearish

Neutral

Shrinking

 

 

2. Fundamental Overview

The GBP/USD pair fell to 1.2506 at the beginning of the US session, a level last seen in April 2017, as UK PM May's leadership came again under scrutiny after she decided to pull out the Brexit deal from the Parliament and rush back to Brussels, trying to get a deal that has chances to pass the Commons. The European Court of Justice ruled earlier on the day that the kingdom could reverse its decision to leave the European Union without consulting other member states, but Downing Street has repeatedly said that they won't revert the decision to leave the Union. May confirmed the deference of the Parliamentary vote as she had no majority to pass it over, and it didn't take long before opposition Corbyn called for May's resignation. Adding fuel to the fire, UK data released this Monday was extremely disappointing, as Industrial and Manufacturing Production plunged in October, much worse than expected, while the monthly NIESR GDP estimate on economic growth printed 0.3% for the 3-month to November, below the previous 0.4%. The UK will release this Tuesday its latest employment data, with average earnings seen matching previous month figures up by 3.0% including bonus, and the ILO unemployment rate foreseen unchanged at 4.1%.( FXSTREET)

 

International & Financial Terms

1. Synergy: Occurs in the mergers of two companies.

2. Treasury Bill:  Short term government securities not more than one year.

3. Closed Economy: An economic system that does not trade outside it`s borders.

4. Downside:  A downward price movement or loss.

5. ECB:  European Central Bank.

 

 

Compiler: A Bank Dealing Room Section

Management of International Deputy           The Expert In Charge Of Dealing Room


69 الأربعاء 12 ديسمبر 2018 10:52