Posted at 06 December 2023 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 3.0%,6.3% previous
•US Nov Services PMI 50.8, 50.8 forecast,50.6 previous
•US Nov S&P Global Composite PMI 50.7, 50.7 forecast,50.7 previous
•US Total Vehicle Sales 15.32M,15.50M previous
•US IBD/TIPP Economic Optimism 40.0 ,45.2 forecast,44.5 previous
•US Nov ISM Non-Manufacturing Business Activity 55.1,54.1 previous
•US Nov ISM Non-Manufacturing PMI 52.7, 52.0 forecast,51.8 previous
•US ISM Non-Manufacturing Employment 50.7,51.4 forecast,50.2previous
•US Oct JOLTs Job Openings 8.733M, 9.300M forecast,9.553M previous
Look Ahead Economic Data(GMT)
•00:30 Australia GDP (YoY) (Q3) 1.7% forecast, 2.1% previous
•00:30 Australia GDP Final Consumption (Q3) 0.2% previous
•00:30 Australia GDP Capital Expenditure (Q3) 2.4% previous
•00:30 Australia GDP (QoQ) (Q3) 0.3% forecast, 0.4% previous
•00:30 Australia GDP Chain Price Index (Q3) -2.2% previous
Look Ahead Events And Other Releases(GMT)
•No Events Ahead
EUR/USD: The euro declined against dollar on Tuesday as dovish comments from the ECB weighed on euro. European Central Bank member Isabel Schnabel, who said in an interview with Reuters that interest rate hikes were off the table, given the recent remarkable fall in inflation. The euro has lost 1.34% since then and the data was enough to persuade ECB board member Schnabel to change her stance on rate cuts. A month ago, she had insisted hikes must remain an option. The euro was last down 0.5% to $1.0782.Immediate resistance can be seen at 1.0836(38.2%fib), an upside break can trigger rise towards 1.0878( (5DMA).On the downside, immediate support is seen at 1.0800 (50%fib), a break below could take the pair towards 1.0731(61.8%fib).
GBP/USD: The pound dipped on Tuesday as dollar ticked higher ahead of key economic indicators later this week. Investors are awaited the Bank of England's Financial stability report, along with the November ADP National Employment and the nonfarm payrolls report for November due later in the week. On data front, A survey showed activity in Britain's services sector grew in November after three months of declines but companies reported an uptick in prices charged, a potential concern for the Bank of England ahead of its interest rates decision next week. Sterling was $1.258, down 0.4% against the U.S. dollar, which regained some ground.Immediate resistance can be seen at 1.2625(38.2%fib), an upside break can trigger rise towards 1.2715(23.6%fib).On the downside, immediate support is seen at 1.2594 (5DMA), a break below could take the pair towards 1.2545(50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as the greenback notched broad-based gains and domestic purchasing mangers' index (PMI) data showed the downturn in the services sector deepening in November. The S&P Global Canada Services Business Activity Index fell to 44.5 in November from 46.6 in October, its lowest level since June 2020, pressured by increased borrowing costs and worries about a potential recession.The loonie was trading 0.3% lower at 1.3575 to the greenback , after moving in a range of 1.3535 to 1.3591. On Monday, it touched its strongest intraday level in two months at 1.3477 .Immediate resistance can be seen at 1.3559 (38.2%fib), an upside break can trigger rise towards 1.3620(14DMA).On the downside, immediate support is seen at 1.3538 (23.6%fib), a break below could take the pair towards 1.3482 (Dec 4th low).
USD/JPY: The dollar steadied against the yen on Tuesday in spite of data showing that U.S. job openings dropped in October to the lowest level since early 2021.Job openings, a measure of labor demand, fell 617,000 to 8.733 million on the last day of October, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday, coming in below estimates. The slowing labor market and subsiding inflation have raised optimism that the U.S. Federal Reserve is probably done raising interest rates this cycle, with financial markets even anticipating a rate cut in mid-2024. The dollar index was last up 0.41% at 104.03, its highest in a week. Strong resistance can be seen at 147.35(38.2%fib),an upside break can trigger rise towards 148.08(50%fib).On the downside, immediate support is seen 146.36 (23.6%fib)a break below could take the pair towards 145.89 (Sep 11th low).
Equities Recap
European stocks were muted on Tuesday as gains in energy shares offset a drop in miners and healthcare, while investors focused on a slew of economic data during the day for insights into the global monetary policy outlook.
UK's benchmark FTSE 100 closed down by 0.31 percent, Germany's Dax ended up by 0.78 percent, France’s CAC finished the day up by 0.74 percent.
Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March.
Dow Jones closed down by 0.22% percent, S&P 500 closed down by 0.06% percent, Nasdaq settled up by 0.31% percent.
Commodities Recap
Gold slipped on Tuesday after grazing an all-time high in the previous session as the dollar regained footing and investors refrained from making big bets ahead of key U.S. jobs data that could offer more clarity on the U.S. interest rate path.
Spot gold was down 0.5% at $2,020.29 per ounce by 3:10 p.m. ET (2010 GMT).U.S. gold futures settled down 0.3% at $2,036.30.
Oil prices fell to a near five-month low on Tuesday on a stronger U.S. dollar and demand concerns, putting the market down for a fourth day in a row on doubts over OPEC+ announced voluntary supply cuts last week.
Brent crude oil futures fell 83 cents, or 1.1%, to settle at $77.20 a barrel, while U.S. West Texas Intermediate crude (WTI) ended 72 cents, or 1.0%, lower at $72.32.