Posted at 21 November 2022 / Categories Market Roundups
Market Roundup
•German Oct PPI (MoM) -4.2%, 0.9% forecast, 2.3% previous
•German Oct PPI (YoY) 34.5%, 41.5% forecast,45.8% previous
•Sweden Capacity Utilization (QoQ) (Q3) -0.9%, 0.8% previous
• Greek Sep Current Account (YoY) -0.811B, 0.449B previous
Looking Ahead Economic Data(GMT)
•13:30 US Oct Chicago Fed National Activity 0.10 previous
•14:00 French 12-Month BTF Auction 2.374% previous
•14:00 French 3-Month BTF Auction 1.431% previous
•14:00 French 6-Month BTF Auction 1.759% previous
•16:30 US 6-Month Bill Auction 4.440% previous
•16:30 US 2-Year Note Auction 4.460% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined on Monday as greenback gained as fresh COVID-19 restrictions in China exacerbated worries about the global economic outlook.The safe-haven dollar rallied, while the U.S. Treasury yield curve remained deeply inverted in a sign that investors remain alert to global recession risks. Investors will keep a close eye on minutes from the Federal Reserve’s November meeting due on Wednesday, with market participants pricing in a half-point rate increase in December following recent comments by Fed officials. Immediate resistance can be seen at 1.03440 (Daily high), an upside break can trigger rise towards 1.0383(23.6%fib).On the downside, immediate support is seen at 1.0225(38.2%fib), a break below could take the pair towards 1.0164(14DMA).
GBP/USD: The pound declined against the dollar on Monday as investors fretted about the economic fallout from fresh COVID-19 restrictions in China, with resulting risk aversion benefited the dollar. Beijing’s most populous district urged residents to stay at home on Monday as the city’s COVID case numbers rose, while at least one district in Guangzhou was locked down for five days. The U.S. Thanksgiving holiday on Thursday combined with the distraction of the soccer World Cup could make for thin trading,while, minutes of the U.S. Federal Reserve’s last meeting are due on Wednesday. Immediate resistance can be seen at 1.1906 ( 23.6%fib), an upside break can trigger rise towards 1.2011 (23.6%fib).On the downside, immediate support is seen at 1.1725 (38.2%fib), a break below could take the pair towards 1.1650 (14DMA).
USD/CHF: The dollar rose against the Swiss franc on Monday as the market sentiment was dented by worries about a rise in COVID cases in China and tightening restrictions in some cities of the world's second-biggest economy. China's capital Beijing reported two deaths for Nov. 20, with the city's most populous district urging residents to stay at home on Monday, extending a request from the weekend as the country fights numerous COVID-19 flare-ups. Meanwhile, investors will be keenly awaiting minutes from the Fed's November meeting, due to be released on Wednesday, for any hints about the outlook for interest rates. Immediate resistance can be seen at 0.9625 (50%fib), an upside break can trigger rise towards 0.9686 (14DMA).On the downside, immediate support is seen at 0.9505(38.2% fib), a break below could take the pair towards 0.9429(Nov 17th low).
USD/JPY: The dollar strengthened against the Japanese yen on as rising COVID-19 cases in China led to new restrictions there and weighed on global investor sentiment.China is battling numerous COVID flare ups. Two deaths were reported in Beijing on Sunday, and the city's most populous district urged residents to stay at home on Monday. The new cases have cast doubt on hopes that the government could soon ease its tough restrictions. That has boosted the dollar, which is seen as a safe haven in times of global economic stress. The dollar was up 0.5% against Japan's yen at 141.07, its highest since Nov. 11. Strong resistance can be seen at 142.22 (50% fib), an upside break can trigger rise towards 142.96 (14DMA).On the downside, immediate support is seen at 140.11 (38.2%fib), a break below could take the pair towards 139.12 (Nov 17th low).
Equities Recap
European shares slipped on Monday, with economically sensitive sectors like mining and industrials leading the losses on worries about the impact of surging COVID-19 cases in China.
At (GMT 11:47 ),UK's benchmark FTSE 100 was last trading down at 0.05 percent, Germany's Dax was down by 0.61 percent, France’s CAC finished was down by 0. 15 percent.
Commodities Recap
Gold prices fell for a fourth straight session on Monday due to a stronger dollar, with the U.S. Federal Reserve’s monetary policy stance clouding the outlook for non-yielding bullion.
Spot gold was down 0.6% to $1,739.31 per ounce at 0931 GMT, after earlier hitting its lowest level since Nov. 10 at $1,738.35.U.S. gold futures shed 0.7% to $1,742.00.
Oil prices dropped to trade near two-month lows on Monday, having earlier slid by around $1 a barrel, as supply fears receded while concerns over fuel demand from China and U.S. dollar strength weighed on prices.
Brent crude futures for January had slipped 65 cents, or 0.7%, to $86.97 a barrel by 1000 GMT.
U.S. West Texas Intermediate (WTI) crude futures for December were at $79.71 a barrel, down 37 cents or 0.5%, ahead of the contract's expiry later on Monday.