America’s Roundup: Dollar posts strong annual gain, outperforming rivals ,Wall Street ends lower, Gold gains modestly, Oil registers 3% annual decline

 Market Roundup

•US Redbook (YoY) 7.1%,5.9% previous

•US House Price Index (YoY) (Oct) 4.5%,   4.4% previous

•US House Price Index (MoM) (Oct) 0.4%,0.5% forecast, 0.7% previous

•US House Price Index (Oct) 432.3,430.3 previous

•US S&P/CS HPI Composite - 20 s.a. (MoM) (Oct) 0.3%,0.2% previous

•US S&P/CS HPI Composite - 20 n.s.a. (YoY) (Oct) 4.2%, 4.1%, 4.6% previous

•US Dallas Fed Services Revenues (Dec) 13.8,10.9 previous

Looking Ahead Economic Data (GMT)

•No  Data Ahead

Looking Ahead Events And Other Releases (GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro slipped against the dollar on Tuesday, as traders adjusted expectations for monetary policy, anticipating that the European Central Bank (ECB) would be more aggressive with its rate cuts compared to the Federal Reserve. The euro zone economy has been showing signs of a sharper slowdown than previously expected, prompting the ECB to cut rates more significantly in response. This dovish stance from the ECB has led investors to forecast additional rate cuts in the coming months, further weighing on the euro. In contrast, while the U.S. Federal Reserve is also expected to cut rates next year, its pace of easing is expected to be slower, supporting the dollar's strength relative to the euro. Immediate resistance can be seen at 1.0434(38.2%fib), an upside break can trigger rise towards 1.0470(50%fib).On the downside, immediate support is seen at 1.0393(23.6%fib), a break below could take the pair towards 1.0300(Psychological level)

GBP/USD: Sterling was on track for a drop of more than 6% in the fourth quarter, reflecting a rally in the dollar driven by the U.S. Federal Reserve's tougher stance on inflation, along with signs of weakening in the UK economy. Investors broadly expect the Bank of England to cut interest rates two times next year after two cuts in 2024. BoE officials remain concerned that inflation in services and wages remains too high.BoE officials were more split than expected as they voted to hold rates this month, with three voting for a reduction. Britain’s economy contracted in September and October, the first back-to-back shrinkage since the COVID-19 pandemic. Traders project around 52 basis points of rate reduction by the end of 2025. Immediate resistance can be seen at 1.2618(38.2%fib), an upside break can trigger rise towards 1.2666 (Dec  19th high).On the downside, immediate support is seen at 1.2487(23.6%fib), a break below could take the pair towards 1.2450(Lower BB)

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as the dollar firmed on expectations that the Federal Reserve will maintain higher interest rates. Looking ahead to 2025, market participants have scaled back their expectations for significant rate cuts by the Fed and are bracing for potential policy shifts with Donald Trump's return to the White House. Investors are also focused on upcoming monthly employment data from both Canada and the United States, which will provide clues about the future direction of monetary policy in both countries. Most global markets, including Canada, will be closed on Wednesday for the New Year holiday. The loonie was trading 0.3% lower at C$1.44 to the greenback, after trading in a range of 1.4339 to 1.4408. Immediate resistance can be seen at 1.4446(23.6% fib), an upside break can trigger rise towards 1.4516 (Higher BB).On the downside, immediate support is seen at 1.4345(Daily low), a break below could take the pair towards 14271(38.2%fib).

USD/JPY: The U.S. dollar steadied against the yen on Tuesday as the prospect that the Federal Reserve will hold interest rates higher boosted dollar across the board. The Japanese currency was among the biggest losers of the year and was on pace for its fourth yearly loss against the greenback as it suffers from a wide interest rate differential between Japan and the United States. Analysts expect the Japanese currency to eventually be supported by further Fed easing and interest rate increases by the Bank of Japan. Until then traders are on watch for intervention by Japanese authorities, after they stepped in to support the currency several times this year. The greenback was last up 0.29% at 157.28 yen and on track for a 11.5% yearly gain. Immediate resistance can be seen at 158.18 (23.6%fib) an upside break can trigger rise towards 159.00 (Psychological level). On the downside, immediate support is seen at 157.25(Dec 27th low) a break below could take the pair towards 156.73(38.2%fib).

Equities Recap                                                                                                                                                           

European stocks posted their worst quarterly performance in over two years on Tuesday, as uncertainty surrounding interest rates and the policies of the Trump administration halted a rally that had driven several markets to record highs earlier in the year.

 UK's benchmark FTSE 100 closed up  by 0.64 percent, Euro Stoxx 50 closed down by 0.60 percent, Spain’s IBEX 35 closed up by 0.50 percent ,France’s CAC closed up by 0.92 percent. 

Wall Street lost ground on Tuesday as investors closed the book on a remarkable year for equities, during which the U.S. stock market was powered to record highs by the twin engines of the artificial-intelligence boom and the U.S. Federal Reserve's first interest rate cuts in three-and-a-half years..

 Dow Jones closed down by 0.07%percent, S&P 500 closed down  by 0.43% percent, Nasdaq closed down by  0.88% percent.

Commodities Recap

Gold prices were on track to end a record-breaking year on a high note on Tuesday, driven by strong central bank buying, geopolitical uncertainties, and monetary policy easing, marking the metal's best annual performance since 2010.

Spot gold rose 0.7% to $2,624.24 per ounce as of 02:31 p.m. EST (1931 GMT) on Tuesday and U.S. gold futures settled 0.9% higher at $2,641.00.

Oil prices fell around 3% in 2024, marking a second consecutive year of declines, as the post-pandemic demand recovery stalled, China's economy faced challenges, and the U.S. and other non-OPEC producers increased crude output in an already well-supplied global market.

Brent crude futures on Tuesday, the last trading day of the year, settled up 65 cents, or 0.88%, to $74.64 a barrel. U.S. West Texas Intermediate (WTI) crude settled up 73 cents, or 1.03%, to $71.72 a barrel.