Top Daily Economic News(DECEMBER12, 2018)

No: 221

Date: DECEMBER12, 2018

 

Daily World Economic and Financial News

(REUTERS): DECEMBER12, 2018 ---The dollar held near a one-month high against its peers on Wednesday, supported by a rebound in U.S. government bond yields and weakness of the pound as its battering from uncertainty about Brexit continued.

 (CNBC): DECEMBER12, 2018 ---The dollar index versus a basket of six major currencies stood at 97.420 after rising overnight to 97.545, its highest since Nov. 13.

(CNBC): DECEMBER12, 2018 ---The pound suffered further on Tuesday on media reports that May's parliamentary colleagues believed they had sufficient numbers to mount a no-confidence vote in her leadership.

(CNBC): DECEMBER12, 2018 ---The British currency was little changed at $1.2495 after dropping to $1.2480 overnight, its weakest since April 2017. The currency has lost 1.8 percent this week.

(CNBC): DECEMBER12, 2018 ---The euro was a shade higher at $1.1333 after shedding 0.3 percent the previous day.

(CNBC): DECEMBER12, 2018 ---The dollar was a shade higher against the Japanese yen at 113.49 after touching a one-week peak of 113.52.

(CNBC): DECEMBER12, 2018 ---China's yuan was firmer in offshore trade at 6.886 to the dollar, extending gains from the previous day.

(WSJ): DECEMBER12, 2018 ---Oil prices climbed Friday after OPEC and its allies agreed to cut 1.2 million barrels of oil a day from global supply.  Light, sweet crude for January delivery rose 2.2% to $52.61 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 2.7% to $61.67 a barrel.

(CNBC): DECEMBER12, 2018 ---Gold held steady near a five-month peak on Tuesday as fading expectations of further interest rate hikes in the United States burnished the appeal of non-interest-bearing bullion. Spot gold was down .13 percent at $1,243.02 per ounce, as of 1:50 p.m. ET. It touched its highest since July 11 at $1,250.55 in the prior session. U.S. gold futures settled at $1247.20 per ounce, falling $2.20.

USD/JPY PAIR ANALYSIS

The pair heads into the Asian opening with a modestly positive tone, as technical indicators are developing within positive ground and near daily highs, although without directional strength, while the pair holds a handful of pips above its 100 and 200 SMA, both confined to a tight 10 pips' range and directionless. The positive tone is being reinforced by the fact that the pair has bounced sharply from its 100 DMA after a second attempt to break lower. Buying interest is now aligned at around 113.00, with the bearish potential set to increase only on a break below 112.55.

Support levels: 112.90 112.55 112.20 

Resistance levels: 113.40 113.75 114.00

USD/JPY PRICE SENTIMENT

 

TREND INDEX

OB/OS INDEX

VOLATILY INDEX

15M

Bullish

Neutral

Low

1H

 

Neutral

Shrinking

4H

Bullish

Overbought

Expanding

1D

Strongly Bearish

Neutral

Shrinking

1W

Bearish

Neutral

Low

 

2. Fundamental Overview

The pair got a boost from an uptick in Treasury yields and rising equities during the first half of the day, but that positive momentum faded in the US afternoon, with the  yield on the benchmark 10-year note peaking at 2.89% before trimming daily gains to finish at around 2.86%, barely up for the day. Japanese data released at the beginning of the day was quite disappointing, as the Q4 BSI Large Manufacturing Index resulted at 5.5, shrinking from the previous 6.5, while Machine Tool Orders plunged 16.8% according to November preliminary estimates, following a 0.7% slide in October.  Japan will release this Wednesday, November the Domestic Corporate Goods Price Index, seen down 0.1% MoM, and the Tertiary Industry Index for the same month, seen improving by 0.9%. October Machinery Orders will also be out, seen posting a whopping 10.5% advance after an 18.3% decline in the previous month. 

International & Financial Terms

1. Cash Price: The price at which a seller is prepared to sell goods provided that payment received immediately in cash.

2. Carrying Market: A commodity market in which goods for delivery and storage can be carried over of month to month.

3. Event Study: An econometric analysis of the impact of new information on financial markets.

4. Shell Company: A non-trading company.

5. Pay Down: Amount by which in treasury refunding the par value of maturing securities is greater than that of those being sold.

 

 

Compiler: A Bank Dealing Room Section

Management of International Deputy           The Expert In Charge Of Dealing Room


366 الأربعاء 12 ديسمبر 2018 10:51