1. Home
  2. »
  3. Recent Posts
  4. »
  5. First Light News: 7...

First Light News: 7 December 2023

First Light News: 7 December 2023, FP Markets

The FP Markets Research Team produces First Light News during the early hours of the European session, a daily Market Briefing that helps ensure traders and investors are up to date in the macro space for the day ahead.

Good morning.

Yesterday, we witnessed further evidence of a softening labour market in the US; ADP non-farm employment change showed that 103,000 new payrolls were added to the US economy in November. This was below the market’s median estimate of 130,000 and a touch south of the downwardly revised 106,000 reading in October.

First Light News: 7 December 2023, FP MarketsAlso in the spotlight yesterday was the Bank of Canada (BoC), which maintained the Overnight Target Rate at 5.0% for a third straight meeting and removed language from its post-rate statement regarding increasing inflationary risks.

First Light News: 7 December 2023, FP MarketsThe impact derived from both releases was minimal across the financial markets.

Looking Ahead

It’s set to be a relatively quiet day regarding economic events, with the spotlight largely directed towards US unemployment filings for the week ending 2 December. Bloomberg’s median estimate heading into the event is 220,000 new claims, up from 218,000 (the estimate range is between 230,000 and 214,000). This labour release follows Tuesday’s softer-than-expected JOLTs number—which revealed job openings dropped by more than 600,000 to 8.7 million in October, down from 9.3 million in September—and, of course, yesterday’s downside surprise in ADP non-farm employment to just north of 100,000.

First Light News: 7 December 2023, FP MarketsSource: Bloomberg


In the FX space, the Dollar Index pencilled in a third straight advance on Wednesday, not only further cementing its position north of the 200-day simple moving average (SMA) at 103.57 but also drawing the unit to resistance on the daily timeframe at 104.15. Any meaningful break of current resistance will help unearth a bullish scenario towards another daily resistance level coming in at 105.04, which shares chart space with the neighbouring 50-day simple moving average at 105.28. Overall, it was a relatively quiet session across G10 FX; notable observations are Europe’s shared currency dropped for a sixth consecutive session against its US counterpart (EUR/USD was down -0.3%) and was one of the major underperformers on the day. Of note, the Japanese yen (JPY) is strongly outperforming this morning (USD/JPY is down -1.1%).

Major US equity indices fell across the board yesterday, with tech leading. The Dow Jones Industrial Average fell 70 points (-0.2%) to 36,054, the S&P 500 dropped 17 points (-0.4%) to 4,549, and the Nasdaq 100 was down 89 points (-0.6%) to 15,788. Energy stocks underperformed, down -1.6%, followed by tech stocks (-0.9%) and financials (-0.5%); outperformers were utilities, up +1.4% and industrials (+0.5%).

For commodities, spot gold (XAU/USD) was relatively quiet on Wednesday, following the all-time high printed on Monday at $2,148 (and daily bearish outside reversal candle formation). The weekly timeframe of spot silver (XAG/USD) is poised to form a bearish outside reversal candle formation from resistance at $25.87, a move which could guide the precious metal back to support at $22.42. WTI oil took a beating in recent movement, down nearly -4.0% and clocking near 6-month lows. The downward move was exacerbated by dollar strength and EIA stats revealing a stronger-than-expected build in gasoline inventories in the US.

The major crypto BTC/USD has taken a breather in recent trading after touching a high of $45,000 and shaking hands with resistance on the daily timeframe at $43,828 on Tuesday, as well as price connecting with resistance between $46,112 and $42,971 on the weekly timeframe, an area bolstered by a robust overbought signal out of the Relative Strength Index (RSI).

Weekly/Daily Chart of BTC/USD:

First Light News: 7 December 2023, FP Markets(Trading View)

G10 FX space as of 08:20 am GMT:

First Light News: 7 December 2023, FP Markets(Trading View)

Thanks for reading. Have a great day.


The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.



















  • First Light News: 7 December 2023, FP Markets
    • Articles
    • Views

    FP Markets

    FP Markets is an Australian regulated broker established in 2005 offering access to Derivatives across Forex, Indices, Commodities, Stocks & Cryptocurrencies on consistently tighter spreads in unparalleled trading conditions. FP Markets combines state-of-the-art technology with a huge selection of financial instruments to create a genuine broker destination for all types of traders.