Posted at 29 November 2021 / Categories Market Roundups
Market Roundup
•Canada Current Account (Q3) 1.4B,4.6B forecast, 3.6B previous
•Canada Oct RMPI (YoY) 4.8% ,2.5% previous
•Canada Oct IPPI (YoY) 16.7%,14.9% previous
•French 12-Month BTF Auction -0.771%,-0.754% previous
•French 3-Month BTF Auction -0.949%,-0.959% previous
•French 6-Month BTF Auction-0.863%,-0.847% previous
•US Oct Pending Home Sales Index 125.2, 116.7 previous
•US Oct Pending Home Sales (MoM) 7.5%,0.9% forecast, -2.3% previous
•US Nov Dallas Fed Mfg Business Index 11.8, 14.6 previous
Looking Ahead Economic Data (GMT)
•23:30 Japan Oct Unemployment Rate 2.8% forecast,2.8% previous
•23:30 Japan Oct Jobs/applications ratio 1.17 forecast, 1.16 previous
•23:50 Japan Industrial Production (MoM) 1.8% forecast, -5.4% previous
•06:00 Australia GDP (QoQ) (Q3) -2.7% forecast, 0.7% previous
•06:00 Australia GDP (YoY) (Q3) 3.0% forecast, 9.6% previous
•07:15 China Nov Caixin Manufacturing PMI 50.5 forecast, 50.6 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro was little changed against dollar on Monday as investors looked to assess the impact of the Omicron coronavirus variant and the resulting measures on global economies. The variant was found around the world over the weekend, with cases in the Netherlands, Denmark and Australia even as more countries imposed travel restrictions. While markets have calmed on Monday, investors will be scrutinising scientists' assessment of the efficacy of vaccines against the new variant and trying to assess how potential measures could affect economies and policy. Immediate resistance can be seen at 1.1304(11DMA), an upside break can trigger rise towards 1.1322 (50%fib).On the downside, immediate support is seen at 1.1261(38.2 % fib), a break below could take the pair towards 1.1190(23.6%fib).
GBP/USD: Sterling dived back towards a 11-month low on Monday as investors weighed the discovery of the Omicron coronavirus variant on the outlook for the British economy. While British health authorities have yet to annouce any major increase in COVID restrictions, traders have quietly whittled away at the odds of the Bank of England raising interest rates later this month. The pound slipped 0.2% to $1.3311, not far from a December 2020 low of $1.3278 on Friday. Against the euro , it strengthened 0.2% to 84.67 pence. Immediate resistance can be seen at 1.3345(5DMA), an upside break can trigger rise towards 1.3399(50%fib).On the downside, immediate support is seen at 1.3309 (23.6%fib), a break below could take the pair towards 1.3255 (Lower BB).
USD/CAD: The Canadian dollar edged higher against the greenback on Monday but held near a two-month low, as a rebound in oil prices lost some momentum and investors weighed the potential economic impact of the Omicron coronavirus variant. Canada is a major exporter of commodities, including oil, so the loonie tends to be sensitive to prospects for the global economy. The loonie was trading 0.2% higher at 1.2760 to the greenback , after trading in a range of 1.2720 to 1.2793. On Friday, it touched its weakest intraday level in more than two months, at 1.2799.Immediate resistance can be seen at 1.2780 (23.6%fib), an upside break can trigger rise towards 1.2805(Psychological level).On the downside, immediate support is seen at 1.2742(38.2%fib), a break below could take the pair towards 1.2680(50%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Monday as governments around the world sought further information on the most recent mutation and its impact. The Omicron variant, first detected in southern Africa, prompted a financial markets sell-off on Friday on fears it would further disrupt a growing economic recovery after the two-year pandemic. The dollar's status as a safe haven means it benefits from uncertainty, but it fell on Friday because investors saw the Omicron variant as possibly affecting the timing of the Federal Reserve's and other major central banks' plans to raise interest rates .Strong resistance can be seen at 113.98 (23.6% fib), an upside break can trigger rise towards 114.30 (14DMA).On the downside, immediate support is seen at 113.44(38.2%fib), a break below could take the pair towards 113.00(50%fib).
Equities Recap
European shares rose on Monday after their worst selloff in more than a year as investors awaited clues on whether the Omicron variant of coronavirus would hamper economic recoveries and monetary tightening plans by central banks.
UK's benchmark FTSE 100 closed up by 0.94 percent, Germany's Dax ended up by 0.16 percent, France’s CAC finished the day up by 0.54 percent.
Wall Street stocks closed higher on Monday, regaining some of the ground they lost in Friday's sell-off, as investors were hopeful that the Omicron coronavirus variant would not lead to lockdowns after reassurance from U.S. President Joe Biden.
Dow Jones closed up by 0.68 percent, S&P 500 closed up by 1.32 percent, Nasdaq settled up by 1.88 % percent.
Treasuries Recap
U.S. Treasury yields mostly rose and the curve steepened on Monday amid a waning flight-to-safety bid that had been triggered by the detection of a new coronavirus variant last week, leading to the market's biggest rally since the onset of the pandemic.
The benchmark 10-year yield , which dropped as low as 1.473% on Friday and rose as high as 1.565% earlier on Monday, was last up 3.6 basis points at 1.5209%. Yields move inversely to prices.
Gold prices eased on Monday, resuming a broad decline from the previous week, as the dollar firmed and risk sentiment recovered with markets weighing how severe the economic impact would be from the Omicron coronavirus variant.
Spot gold fell 0.4% to $1,784.80 per ounce by 13:41 p.m. ET (1841 GMT). It had closed last week 2.9% lower, its biggest weekly drop since June. U.S. gold futures settled 0.2% lower at $1,782.30.
Oil rebounded by almost 5% on Monday to US$76 a barrel as some investors viewed Friday's slump in oil and financial markets on concern about the Omicron coronavirus variant as overdone.
Brent crude was US$3.24, or 4.5%, higher at US$75.96 by 1047 GMT, after sliding US$9.50 on Friday. U.S. West Texas Intermediate (WTI) crude was up US$3.12, or 4.6%, at US$71.27, having tumbled US$10.24 in the previous session.
Oil pared gains late on Monday, but finished the session higher as investors viewed Friday's slump in oil and financial markets as overdone absent more data on the Omicron coronavirus variant.ediate (WTI) crude was up US$3.12, or 4.6%, at US$71.27, having tumbled US$10.24 in the previous session.
Brent crude futures settled at $73.44 a barrel, up 72 cents or 1%, having slid by $9.50 on Friday. U.S. West Texas Intermediate (WTI) crude settled up $1.80, or 2.6% at $69.95 a barrel. The contract tumbled $10.24 in the previous session.