Posted at 28 November 2022 / Categories Market Roundups
Market Roundup
•EU Oct Loans to Non Financial Corporations 8.9%,8.9%
•EU Oct M3 Money Supply (YoY) 5.1% ,6.2% forecast, 6.3% previous
•EU Private Sector Loans (YoY) 4.2% ,4.5% forecast, 4.4% previous
•UK Nov CBI Distributive Trades Survey -19 ,-2.6%, 2 forecast, 18 previous
Looking Ahead - Economic Data (GMT )
•13:30 Canada Current Account (Q3) 6.6B forecast, 2.7B previous
•14:00 EU French 12-Month BTF Auction 2.275% previous
•14:00 EU French 3-Month BTF Auction 1.341% previous
•14:00 EU French 6-Month BTF Auction 1.838% previous
•15:30 US Nov Dallas Fed Mfg Business Index -19.4 previous
•16:30 US 3-Month Bill Auction 4.220%
•16:30 US 6-Month Bill Auction 4.520%
Looking Ahead - Events, Other Releases (GMT)
•14:00 EU ECB President Lagarde Speak
•17:00 US FOMC Member Bullard Speaks
•17:00 US FOMC Member Williams Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Monday as investors awaited high-profile ECB President Lagarde speech after comments after board member Isabel Schnabel pushed back on Thursday against calls from many of her colleagues for smaller interest rate increases. ECB president Christine Lagarde will speak before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels at 1400 GMT. Investors expect the ECB to pause its rate hikes or even cut them next year as inflation will start declining faster than expected or because the central bank wants to avoid deepening a recession. Immediate resistance can be seen at 1.0493(23.6%fib), an upside break can trigger rise towards 1.0565(Higher BB).On the downside, immediate support is seen at 1.0403(5DMA), a break below could take the pair towards 1.0349(38.2%fib).
GBP/USD: Sterling edged up against a weaker dollar on Monday, hovering near a three-month high, even as Britain's murky economic outlook weighed on traders' minds. A survey released on Monday showed Britain's property market activity stalling in October and house price growth slowing to its lowest quarterly level since February 2020, as the fallout from former prime minister Liz Truss's "mini-budget" and a cost-of-living crisis continued to be felt. At 1030 GMT, the pound was up 0.12% at $1.2103 not far off a three-month high of $1.2153 touched on Nov. 24. Market players pondering the Bank of England's (BoE) next move will be listening carefully to several BoE members due to speak this week, including BoE governor Andrew Bailey on Tuesday and chief economist Huw Pill on Wednesday. Immediate resistance can be seen at 1.2138( 23.6%fib), an upside break can trigger rise towards 1.2260 (Higher BBb).On the downside, immediate support is seen at 1.1974 (9DMA), a break below could take the pair towards 1.1853 (38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Monday as rare protests in major Chinese cities against the country's strict zero-COVID curbs dented global market sentiment. The protests raised investors' concerns about the growth implications for the world's second-largest economy. Investors' focus this week will be on Federal Reserve Chair Jerome Powell's Wednesday speech on the U.S. economy and labour market for clues on the monetary policy outlook. The U.S. Labor Department's November nonfarm payrolls data due on Friday is expected to provide more clarity on the Fed's rate-hike path.Traders are pricing in a 50 basis-point increase at the Fed's December meeting after minutes of the last policy meeting signalled a slower pace of hikes. Immediate resistance can be seen at 0.9487(5DMA), an upside break can trigger rise towards 0.9545(38.2%fib).On the downside, immediate support is seen at 0.9404(23.6% fib), a break below could take the pair towards 0.9360(Nov 15th low).
USD/JPY: The dollar declined against Japanese yen on Monday as demand for Japanese yen increased on uncertainty amid protests in China against COVID-19 curbs and its impact on the world economy. China posted record-high COVID-19 infections on Monday, after a weekend of protests, raising worries about the management of the country's zero-COVID policy and its impact on the world's second-largest economy. Investors' focus this week will be on Federal Reserve Chair Jerome Powell's Wednesday speech on the U.S. economy and payrolls data for clues on the monetary policy outlook. The U.S. Labor Department's November nonfarm payrolls data due on Friday is expected to provide more clarity on the Fed's rate-hike path. The Japanese yen slipped 0.68 on the day to 138.16 to the dollar. Strong resistance can be seen at 139.33(5DMA), an upside break can trigger rise towards 140.33(38.2%fib).On the downside, immediate support is seen at 137.68 (23.6% fib), a break below could take the pair towards 137.00(Psychological level).
Equities Recap
European shares fell from three-month highs on Monday, led by losses in energy and mining stocks, as widespread and rare protests in China against stringent COVID-19 curbs sparked a wave of selling in global markets.
At (GMT 12:32 ),UK's benchmark FTSE 100 was last trading down at 0.33 percent, Germany's Dax was down by 0.92 percent, France’s CAC finished was down by 0. 88percent.
Commodities Recap
Gold prices rose to a more than one-week high on Monday, helped by a softer U.S. dollar and some safe-haven demand amid protests in several Chinese cities over the country's strict COVID-19 curbs.
Spot gold was up 0.3% at $1,760.87 per ounce, as of 1055 GMT, after hitting its highest since Nov. 18 earlier in the session. U.S. gold futures rose 0.5% to $1,762.20.
Oil prices fell close to their lowest this year on Monday as street protests against strict COVID-19 curbs in China, the world's biggest crude importer, stoked concern over the outlook for fuel demand.
Brent crude dropped by $2.71, or 3.2%, to trade at $80.92 a barrel at 1200 GMT, having dived more than 3% to $80.61 earlier in the session for its lowest since Jan. 4.
U.S. West Texas Intermediate (WTI) crude slid $2.31, or 3%, to $73.97 after touching its lowest since Dec. 22 last year at $73.60.