Posted at 07 December 2021 / Categories Market Roundups
Market Roundup
•French 6-Month BTF Auction -0.824%,-0.863% previous
•French 3-Month BTF Auction -0.893%,-0.949% previous
•French 12-Month BTF Auction -0.792%,-0.771% previous
•US Nov CB Employment Trends Index 114.49, 112.23 previous
Looking Ahead - Economic Data (GMT)
• 06:00 Australia House Price Index (QoQ) (Q3) 5.0% forecast, 6.7% previous
• 06:00 Australia Building Approvals (MoM) -12.9% forecast, -3.9% previous
• 08:30 China Nov Trade Balance (USD) 82.75B forecast, 84.54B previous
• 08:30 China Nov Imports (YoY) 19.8% forecast, 20.6% previous
• 08:30 China Nov Exports (YoY) 19.0% forecast, 27.1% previous
• 09:00 Australia Dec RBA Interest Rate Decision 0.10% forecast, 0.10% previous
Looking Ahead - Events, Other Releases (GMT)
• 09:00 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro declined on Monday as dollar advanced but moves limited by overall uncertainty over the Omicron coronavirus variant ahead of this week's U.S. inflation numbers. Investors are awaiting U.S. consumer price data on Friday for cues on the Federal Reserve's monetary policy strategy. The dollar had dipped on Friday following a below-forecast jobs report, though the data did little to shake market expectations the Federal Reserve will accelerate the pace of unwinding stimulus and raise interest rates, starting next year. The euro was down 0.10 percent at $1.12804. Immediate resistance can be seen at 1.1362 (50% fib), an upside break can trigger rise towards 1.1420 (30 DMA).On the downside, immediate support is seen at 1.1274(38.2%fib), a break below could take the pair towards 1.1179 (23.6% fib).
GBP/USD: Sterling rose on Monday after Bank of England Deputy Governor Ben Broadbent warned Britain’s tight labour market will add pressure on inflation, reigniting some hopes for an interest rate hike. Sterling strengthened after the BoE’s Broadbent said Britain’s tight labour market was likely to be a more persistent source of inflation. He said inflation might “comfortably exceed” 5% in April next year and that transitory inflation should be understood as referring to the next 18-24 months.After Friday’s slump, sterling strengthened 0.1% versus the dollar, to $1.3238 at 1540 GMT, remaining not far from a 2021 low of $1.3194 touched last week.. Immediate resistance can be seen at 1.3265(50%fib), an upside break can trigger rise towards 1.3328(61.8%fib).On the downside, immediate support is seen at 1.3194 (38.2%fib), a break below could take the pair towards 1.3126 (23.6%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as oil prices rose and attention turned to a Bank of Canada interest rate decision this week, with the currency recovering from its lowest level in more than two months.The price of oil, one of Canada's major exports, rose on hopes the Omicron coronavirus variant would have a less damaging economic impact if its symptoms proved mostly mild and as the prospect of an imminent rise in Iranian oil exports. The Canadian dollar was trading 0.4% higher at 1.2791 to the greenback , after trading in a range of 1.2783 to 1.2842. Immediate resistance can be seen at 1.4014 (5 DMA), an upside break can trigger rise towards 1.4170 (Daily high).On the downside, immediate support is seen at 1.4000 (Psychological level), a break below could take the pair towards 1.3835 (21 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as easing concerns about the Omicron coronavirus variant led investors to buy dollar. U.S. dollar gained on news that initial observations suggested Omicron patients had only mild symptoms, reversing some of Friday’s heavy selloff. Investors have grown more bullish on the dollar in recent weeks, with net long bets on the greenback climbing to the highest level since June 2019. The dollar climbed 0.5% against the Japanese yen. The yen typically draw investors for safety when economic or geopolitical tensions rise. Strong resistance can be seen at 113.17 (38.2%fib), an upside break can trigger rise towards 113.73 (23.6%fib).On the downside, immediate support is seen at 112.69 (50%fib), a break below could take the pair towards 112.20 (61.8%fib).
Equities Recap
European stocks moved higher on Monday as Asian markets lagged, while bonds surrendered some of their recent gains and oil rallied as Saudi Arabia lifted its crude prices.
UK's benchmark FTSE 100 closed up by 1.54 percent, Germany's Dax ended up by 1.39 percent, France’s CAC finished the day up by 1.48 percent.
Wall Street’s major averages closed higher on Monday with economically sensitive sectors and travel-related stocks advancing solidly as investors were encouraged by some optimistic comments from a top U.S. official on the latest COVID-19 variant.
Dow Jones closed up by 1.87% percent, S&P 500 closed up by 1.17% percent, Nasdaq settled up by 0.93% percent.
Treasuries Recap
U.S. Treasury yields rose on Monday, with the benchmark 10-year climbing back above the 1.4% mark after hitting its lowest level since late September on Friday in the wake of the November jobs report.
The yield on 10-year Treasury notes was up 9.2 basis points to 1.433% after falling as low as 1.335% on Friday, its lowest since Sept. 23.
Commodities Recap
Gold prices edged lower on Monday as the dollar and U.S. Treasury yields firmed, although rising inflation and uncertainty over the Omicron coronavirus variant limited losses, while investors focused on U.S. consumer prices data due later this week.
Spot gold fell 0.3% to $1,778.09 an ounce by 01:42 p.m. ET (1842 GMT), while U.S. gold futures settled down 0.3% at 1,779.50.
Crude oil futures settled sharply higher on Monday as Saudi Arabia's Aramco hiked prices of its crude exported to Asia and the U.S. and amid easing concerns about Omicron.
West Texas Intermediate Crude oil futures for January settled higher by $3.23 or about 4.9% at $69.49 a barrel.Brent crude futures were up $3.65 or 5.3% at $73.53 a barrel.