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United States EIA Natural Gas Storage Change below expectations (-170B) in December 5: Actual (-177B)

Sterling rallies during the North American session, up over 0.68% after the Federal Reserve delivered as expected a 25-basis points rate cut and a softer than expected jobs report, weighed on the Dollar. At the time of writing, the GBP/USD trades at 1.3417 after bouncing off daily lows of 1.3354.

Sterling rallies during the North American session, up over 0.68% after the Federal Reserve delivered as expected a 25-basis points rate cut and a softer than expected jobs report, weighed on the Dollar. At the time of writing, the GBP/USD trades at 1.3417 after bouncing off daily lows of 1.3354.

United States Wholesale Inventories came in at 0.5%, above forecasts (0.1%) in September

Disney is investing in OpenAI and has licensed its iconic characters like Mickey Mouse, Ariel and Iron Man to be used in the Sora AI video generator.

Home prices have not gone negative since mid-2023, a year after the Federal Reserve first brought rates up from zero, and mortgage rates moved sharply higher.

More than 80,000 collectors and art fans poured into Art Basel Miami Beach, with several works selling for over $1 million.

America’s richest family uses a model pioneered by the Rockefellers to manage their wealth.

Yesterday, the Bank of Canada kept rates unchanged at 2.25%.

Key points from the Bank of Canada statement:

• BoC held the policy rate at 2.25%, maintaining a steady stance as inflation remains near target and the economy continues to adjust to global trade disruptions.

• Global conditions remain mixed: major economies are resilient despite US trade protectionism, with strong US consumption and AI investment, firmer-than-expected euro-area growth, and continued weakness in China’s domestic demand.

• Canada’s Q3 GDP surprised to the upside at 2.6%, but this strength was driven by volatile trade flows; underlying domestic demand was flat, and overall GDP is expected to weaken in Q4.

• Labour market shows tentative improvement, with employment gains over three months and unemployment falling to 6.5%, though trade-sensitive sectors remain soft and hiring intentions subdued.

• Inflation remains near target, with CPI at 2.2% and core measures between 2½% and 3%; underlying inflation is assessed around 2½%, and near-term CPI will be noisy due to last year’s GST/HST holiday effects.

• Policy stance deemed appropriate, with the current rate viewed as the right level to keep inflation close to 2% amid structural trade adjustments; BoC remains ready to respond if the outlook deteriorates.

In his opening statement, Governor Tiff Macklem said the Bank of Canada emphasize 5 key points:

5 key bullet points from BOC Macklems opening statement:

• BoC held the policy rate at 2.25%, judging it appropriate to keep inflation near 2% during a period of structural trade adjustment.

• US tariffs are hitting key sectors, but the overall Canadian economy remains more resilient than expected.

• CPI inflation stays contained near 2%, with core around 2½–3%, and temporary near-term volatility expected.

• Labour market shows modest improvement, though hiring intentions and trade-sensitive sectors remain weak.

• Elevated uncertainty—especially US trade policy and CUSMA review—means the BoC is prepared to respond if the outlook shifts.

USDCAD Slides as Sellers Regain Control After Failed Test of Key Technical Levels

Following the Bank of Canada decision, USDCAD initially moved higher, but the upside momentum stalled at the 100-hour moving average, where buyers quickly turned into sellers. That shift pushed the pair back below the 50% retracement of the rise from the mid-June low, a key technical level at 1.3839. The Fed decision later reinforced the downside momentum, driving the pair to a post-announcement low of 1.37989, just under the 1.3800 psychological level.

During today’s Asian session, USDCAD attempted a rebound, climbing toward Tuesday’s low near 1.3823, but sellers again defended the level and forced another rotation lower. The pair has now pushed to a fresh low and is testing the 61.8% retracement of the entire move up from the mid-June low at 1.37684. A decisive break below this Fibonacci support would open the door toward a major swing-area floor between 1.3720 and 1.37257, defined by three separate lows from August through September — a zone where buyers previously stepped in to halt declines.

Sellers in control, but testing a key target retracement level.

Video Analysis: USDCAD Technical Bias, Targets, and Risk

In the video above, I (Greg Michalowski, author of Attacking Currency Trends) outline the key levels in play for the USDCAD and define (and show/explain) the bias, the targets and the risk from a technical perspective. Watch the full breakdown in the video above.

Be aware. Be prepared.

This article was written by Greg Michalowski at investinglive.com.

Sector Overview

The US stock market painted a mixed picture today. Leading the charge was the financial sector, with notable gains seen in Visa, up by 1.42%, and JPMorgan Chase holding steady. Meanwhile, the technology sector faced headwinds, particularly within semiconductors. Stocks like Nvidia and Advanced Micro Devices plunged by 2.15% and 2.63% respectively, contributing to the overall downturn in tech.

📉 Technology & Semiconductors

The spotlight was on the semiconductor industry, as it recorded significant losses. Both Nvidia (NVDA) and AMD showed marked declines, indicating investor anxiety around future tech growth potentials possibly due to supply chain concerns or market saturation fears.

📊 Consumer Cyclical & Communication Services

Sectors such as consumer cyclical and communication services faced a challenging day. Amazon (AMZN) was down 0.92%, and Tesla (TSLA) decreased by 1.11%, showcasing potential investor hesitation in these areas. Google (GOOGL) saw a slight downturn of 0.13% as the overarching market uncertainty loomed.

🏦 Financial Sector Resurgence

In contrast to the slow tech performance, financials showed more resilience. Visa’s positive move and moderate gains in banks like Citigroup (C) by 0.22% highlight investor confidence in this space, perhaps indicating a shift towards traditionally stable investments.

💊 Healthcare & Consumer Defensive Sectors

Elsewhere, the healthcare sector notably outperformed, with Eli Lilly (LLY) making a significant one-day gain of 1.88%. The consumer defensive sector, led by steady performers like Walmart (WMT) up by 0.24%, continues to attract attention from risk-averse investors.

Market Mood and Trends

The market sentiment today appeared cautious, driven by mixed sector performances. Investors seemed to pivot towards financials and healthcare, sectors perceived as safer bets amid the current volatility. Technology’s underperformance appears concerning, potentially echoing broader economic slowdown worries.

Strategic Recommendations

Given today’s market dynamics, investors may want to consider readjusting their portfolios. Focusing on financial and healthcare stocks can provide more stable ground amidst market fluctuations. Additionally, keeping a close watch on technology stock movements and related economic announcements could offer timely opportunities to reposition.

For a deeper dive into the latest market signals and the implications for your investment strategy, visit InvestingLive.com. Stay informed and adapt swiftly to leverage the emerging trends.

This article was written by Itai Levitan at investinglive.com.