Posted at 21 November 2022 / Categories Market Roundups
Market Roundup
•US Oct Chicago Fed National Activity -0.05, 0.10 previous
•French 12-Month BTF Auction 2.275% ,2.374% previous
•French 3-Month BTF Auction 1.341%, 1.431% previous
•French 6-Month BTF Auction 1.838% ,1.759% previous
•US 6-Month Bill Auction 4.520% ,4.440% previous
•US 2-Year Note Auction 4.505% , 4.460% previous
Looking Ahead Economic Data(GMT)
• 05:00 Japan BoJ Core CPI (YoY) 2.2% forecats, 2.0% previous
Looking Ahead - Events, Other Releases (GMT)
• 07:00 Australia RBA Governor Lowe Speaks
Currency Summaries
EUR/USD: The euro declined on Monday as greenback gained as fresh COVID-19 curbs in China fuelled worries over the global economic outlook. The dollar found additional support after Federal Reserve Bank of San Francisco President Mary Daly said Monday that the U.S. central bank could lift its overnight target rate above 5% if inflation does not cool off, even thought that's not her expected outcome for monetary policy. Investors will be parsing 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 1.0302 (23.6%fib), an upside break can trigger rise towards 1.0341(Daily high).On the downside, immediate support is seen at 1.0225(Daily low), a break below could take the pair towards 1.0158(38.2%fib).
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/CAD: The Canadian dollar weakened to its lowest level in 11 days against its U.S. counterpart on Monday as rising COVID-19 cases in China weighed on investor sentiment and speculation that OPEC would increase output led to volatility in the price of oil. The price of oil, one of Canada’s major exports, whipsawed as reports varied about whether Saudi Arabia and other OPEC oil producers are considering a half-million barrel daily output increase. U.S. crude oil futures settled 0.4% lower at $79.73 a barrel. The loonie was trading 0.4% lower at 1.3440 to the greenback, after touching its weakest intraday level since Nov. 10 at 1.3495.Immediate resistance can be seen at 1.3478 (21 DMA), an upside break can trigger rise towards 1.3533 (23.6% fib ).On the downside, immediate support is seen at 1.3379 (38.2% fib), a break below could take the pair towards 1.3308(Nov 18th).
USD/JPY: The dollar advanced against the Japanese yen on Monday as fresh COVID-19 curbs in China fuelled worries over the global economic outlook and made traders shun riskier currencies. 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 rose 1.2 % against the Japanese yen to 142.085 yen . Strong resistance can be seen at 142.22 (23.6% fib), an upside break can trigger rise towards 142.60 (14DMA).On the downside, immediate support is seen at 140.04 (38.2%fib), a break below could take the pair towards 139.12 (Nov 17th low).
Equities Recap
European stocks slipped on Monday as a spike in COVID-19 cases and newly recorded deaths in China triggered worries over the impact on the world economy.
UK's benchmark FTSE 100 closed down by 0.12 percent, Germany's Dax ended down by 0.36 percent, France’s CAC finished the day down by 0.15 percent.
Wall Street's main indexes ended Monday roughly down on fears that China could resume stricter measures to fight COVID-19 after it said it faces its most severe test of the pandemic.
Dow Jones closed down by 0.13% percent, S&P 500 closed by 0.39% percent, Nasdaq settled down by 1.09% percent.
Treasuries Recap
Longer duration Treasury yields dipped slightly at the start of a holiday-shortened week on Monday, following data that suggested the U.S. economy was slowing.
The yield on 10-year Treasury notes was down 1.3 basis points to 3.805%.The yield on the 30-year Treasury bond was down 3 basis points to 3.897%.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.2 basis points at 4.512%.
Commodities Recap
Gold prices slipped to their lowest in over a week on Monday, falling over 1% as the dollar extended gains, while the market’s attention turned to the U.S. Federal Reserve’s November meeting minutes due this holiday-shortened week.
Spot gold fell 0.7% to $1,738.40 per ounce by 1:36 p.m. ET (1836 GMT), after earlier hitting its lowest level since Nov. 10 at $1,731.40. U.S. gold futures settled down 0.8% to $1,739.6.
Oil prices rebounded from early losses on Monday after Saudi Arabia denied a report it was discussing an increase in oil supply with OPEC and its allies.
Brent crude futures for January settled at $87.45, shedding 17 cents. U.S. West Texas Intermediate (WTI) crude futures for December settled at $79.73 a barrel