MARKET WRAP 20TH DECEMBER 2024.

Olusegun Enujowo

Analyst

CURRENCY- EURUSD, GBPJPY

Today, as at the time of this post, EUR/USD exchange rate is trading around 1.03998 USD, having increased by 0.03% over the past 24 hours. However, it continues to struggle to break above the 1.0400 level, particularly ahead of upcoming UoM Consumer Sentiment data which may impact market sentiment.

The GBPJPY has increased by 1.64% in the past 24 hours. There is no major fundamental news regarding this pair, but it is experiencing a rally, with the intraday bias remaining on the upside as it approaches the resistance level of 199.79. This follows a corrective pattern that began from around the 180.00 mark.


INDICES- DE40, US100

The DE40 is falling due to a continuation of negative market sentiment, which has seen indices like the FTSE 100 and CAC 40, US30, US500 also decline. Recent trading data indicates that several constituent stocks of the DE40 have experienced significant price drops, contributing to the overall decrease in the index. Additionally, broader market trends and economic indicators may be influencing investor confidence, leading to a sell-off.

US100 is also affected by circumstances similar to that affecting DE40, and primarily due to declines in tech stocks, which have been impacted by recent inflation data. Economic reports have contributed to a broader downturn in U.S. stock markets, with the US100 down more than 2% this week.


COMMODITY- GOLD

Gold extends losses earlier this week amid strengthening yields,  and USD. Also please note that the ongoing hawkish repricing of US rates after Trump's emphatic victory is overshadwing the key interest rate cut descision of the FEDs, which is keeping US dollar and yields underpinned, and buck-denominated gold undermined. A fresh bout of a short-covering could lift the XAU/USD towards the $2,635 area, or the 38.2% Fibo., en route to 50% retracement level, around the $2,655-2,656 supply zone.


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