Posted at 20 December 2022 / Categories Market Roundups
• French 3-Month BTF Auction 1.714%, 1.693% previous
• French 6-Month BTF Auction 2.352% , 2.011% previous
• French 12-Month BTF Auction 2.628% ,2.426% previous
•Canada Nov RMPI (YoY) 8.0% ,9.0% previous
•Canada Nov RMPI (MoM) -0.8%,1.3% previous
•Canada Nov IPPI (MoM) -0.4%,0.4% forecast, 2.4% previous
•US Dec NAHB Housing Market Index 31,34 forecast,33 previous
•US 3-Month Bill Auction 4.290%, 4.270% previous
•US 6-Month Bill Auction 4.550%,4.630% previous
Looking Ahead - Economic events(GMT)
• 00:00 New Zealand Dec NBNZ Own Activity -13.7% previous
• 00:00 New Zealand Dec ANZ Business Confidence -57.1 previous
•01:15 China PBoC Loan Prime Rate 3.65% forecast, 3.65% previous
Looking Ahead - Economic events and other releases (GMT)
•01:00 Australian RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday as investors reacted positively to the latest survey results showing that a measure of German business sentiment increased for a third straight month in December. German business morale rose more than expected in December as Europe's largest economy approached the end of the year with an improved outlook despite the energy crisis and high inflation, a survey said on Monday. The Ifo institute said its business climate index rose to 88.6 from a revised reading of 86.4 in November. The euro gained 0.2 % to $ 1.0611 , not far from the six-month high of $1.0737 touched last week. Immediate resistance can be seen at 1.0661(23.6%fib), an upside break can trigger rise towards 1.0718(Higher BB).On the downside, immediate support is seen at 1.0569(5DMA), a break below could take the pair towards 1.0487(38.2%fib).
GBP/USD: The pound edged lower on Monday against the U.S. dollar from six-month peak against the U.S. dollar on Monday as investors digested last week’s Bank of England (BoE) rate hike and looked ahead for new catalyst .The BoE delivered its ninth consecutive interest rate hike on Thursday, raising rates by 50 basis points (bps) to 3.5% as the central bank battled with double-digit inflation.However, with two policymakers in the nine-person committee favouring status quo on interest rates, markets view that the central bank may be getting closer to the end of its tightening cycle as the economy looks set to slow in 2023. Immediate resistance can be seen at 1.2206( 5DMA), an upside break can trigger rise towards 1.2269(Daily high).On the downside, immediate support is seen at 1.2111 (38.2%fib),a break below could take the pair towards 1.2042 (30DMA).
USD/CAD :The Canadian dollar strengthened against its U.S. counterpart on Monday as investors bet that easing of COVID-19 curbs in China would boost demand for oil, one of Canada’s major exports, with the currency rebounding from a six-week low. U.S. crude oil futures settled 1.2% higher at $75.19 a barrel as optimism over the Chinese economy outweighed concern over a global recession. The loonie was up 0.3% at 1.3660 per greenback, or 73.21 U.S. cents, after trading in a range of 1.3624 to 1.3694. It touched on Friday its weakest level since Nov. 4 at 1.3705. .Immediate resistance can be seen at 1.3688 (23.6%fib), an upside break can trigger rise towards 1.3751 (No 4th high).On the downside, immediate support is seen at 1.3638 (5DMA), a break below could take the pair towards 1.3575 (38.2%fib).
USD/JPY: The dollar strengthened against Japanese yen on Monday as expectations of higher interest rates in the United States for longer than earlier expected supported dollar against yen. Federal Reserve Chair Jerome Powell said last week the central bank will deliver more interest rate hikes next year even as the economy slips towards a possible recession The dollar was 0.2% higher against the Japanese yen after falling as much as 0.7% in the session on a report Japan is considering revising a key monetary policy after a new Bank of Japan governor is appointed in April. Strong resistance can be seen at 138.04(38.2%fib), an upside break can trigger rise towards 138.47 (38.2%fib).On the downside, immediate support is seen at 136.85(5DMA), a break below could take the pair towards 135.53(23.6%fib).
Equities Recap
European shares advanced on Monday, supported by the energy sector, after a bruising selloff last week sparked by growing fears of a global recession as major central banks promised further interest rate hikes ahead.
UK's benchmark FTSE 100 closed up by 0.40 percent, Germany's Dax ended up by 0.36 percent, France’s CAC finished the day up by 0.32 percent.
U.S. stocks closed sharply lower to extend their three-day losing streak on Monday and Treasury yields advanced, with few catalysts to dissuade risk-off sentiment at the beginning of a likely low-volume, pre-holiday week.
Dow Jones closed down by 0.49% percent, S&P 500 closed down by 0.90% percent, Nasdaq settled down by 1.49% percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as investors evaluated how high the Federal Reserve will ultimately hike interest rates and how long it will hold them at higher levels as it battles persistently high inflation.
Benchmark 10-year note yields were last at 3.581%. They are above an almost three-month low of 3.402% on Dec. 7, but are holding well below the 15-year high of 4.338% reached on Oct. 21.
Commodities Recap
Oil prices rose on Monday, as optimism around China relaxing its COVID-19 restrictions outweighed fears of a global recession that would weigh on energy demand.
Brent crude gained 76 cents to settle at $79.80 a barrel, while U.S. West Texas Intermediate crude rose 90 cents to $75.19.
Gold prices inched lower on Monday in thin trading, as rising yields on expectations of higher interest rates countered weakness in the U.S. dollar.
Spot gold fell 0.2% to $1,789.46 per ounce by 1:51 p.m. ET (1851 GMT), while U.S. gold futures settled down 0.1% to $1,797.