Market Roundup
- Indonesia Nov Forex Reserves Decreases to 100.24 Bln $ vs previous 100.700 Bln $
- Eurozone Dec Sentix Index Increases to 15.7 (Forecast 17.0 ) vs previous 15.1
- Germany Oct Industrial Output Mm Increases to 0.2 % (Forecast 0.7 %) vs previous -1.1 %
- EUR/USD lower in Europe, 1.0869-1.0802 into NY
- Euro weakness weighs on crosses. EUR/GBP to 0.7171. EUR/CHF to 1.0831
- DXY +0.4% on the day. Plays 98.301-98.803, up from Thurs 97.591 base
- Kiwi hit by speculation of interest rate cut. NZD/USD 0.6744-0.6661
- Brent down to $42.56/barrel, close to 2015 low of $42.23
- Gold held near Fri 3-wk high @ $1,088.70/oz. $1,081.89-1,086.60 today
- Norway Oct Manufacturing Output -2.3% m/m
- Switzerland domestic sight deposits ease to 397.098bln fm 401.629 w/e Dec 4
- China FX reserves down $87.2 bln in Nov, capital outflows seen
- Turkey ForMin: Air operation not enough to get rid of Islamic state, ground force necessary
- Reuters Nov Tankan survey – mfg index up, non-mfg index off i.e. mixed
- Bank of Japan Kuroda still optimistic, QQE working
- Bank of Japan Sato: BoJ QE impact diminishing
- Bank of Japan Sato: No taper plans, merits-demerits to negative rates
Economic Data Ahead
- (0900 ET/1400 GMT) Employment Trends Index (Nov) previous 129.5
- (0900 ET/1400 GMT)Labor Market Conditions Index (Nov) previous change +1.6
- (1400 ET/1900 GMT) Consumer Credit (Oct) mkt +$20.00 bn, previous +28.92 bn
Key Events Ahead
- (1045 ET/1545 GMT) FedTrade Operation 30-year Fannie Mae / Freddie Mac (max $2.100 bn)
- (1230 ET/1730 GMT) FRB St. Louis’s Bullard on the economy and monetary policy; Muncie, IN
FX BeatUSD: The U.S. dollar was up 0.6 percent against the euro at $1.0818, still down almost 3 cents from highs it reached before last Thursday’s European Central Bank meeting. The dollar index was up 0.4 percent at 98.703. Thursday’s loss was its biggest in almost seven years. EUR/USD: The pair has made a high of 1.0980 and started to retreat from that level. It is currently trading at 1.08340. It has broken major intraday support 1.08250 and this confirms minor weakness, a decline till 1.0800 1.0800/1.0750/1.0700 is possible. Overall trend reversal only above 1.100 level and above 1.100 it will take the pair to next level 1.10350/1.1070/1.1100. Minor resistance is around 1.08650 and break above targets 1.0900/1.09500/1.09800.AUD/USD: The Australian dollar was just below recent peaks on Monday with the market reluctant to take large bets ahead of data and a central bank rate review later in the week. The Aussie was a touch softer at $0.7223, having touched $0.7386 on Friday, a level not seen since August. It held near 3-1/2-month highs against the yen, while the euro hovered at A$1.4814, having tumbled 17 cents since August. Aussie has made a high of 0.7382 and retreated from that level. It is currently trading at 0.7302. Major resistance is around 0.7380 and break above targets 0.7420/0.7460. On the lower side minor support is around 0.7280 and any break below will target 0.7230/0.7170. Short term bullish invalidation only below 0.7170.GBP/USD: Sterling dropped against the dollar with investors buying the greenback after a strong jobs report more or less heated the first rate hike by the Fed. It was down 0.4 percent at $1.5060, while the euro was 0.2 percent lower at 71.80 pence. Cable has made high 1.5160 and declined from that level. It is currently trading at 1.50893. The pair’s major support 1.5050 and break below will drag the pair to new level 1.5000/1.4980. On the higher side major resistance is around 1.5160 and break above targets 1.5200/1.5220.USD/JPY: The pair has recovered after making a low of 122.25 and is currently trading at 123.35. Intraday trend is slightly bullish as long as support 122.90 holds. On the higher side minor resistance is around 123.75 and any break above targets 124.15/125. The pair’s minor support is at 122.90 and break below targets 122.60/122.20.NZD/USD: The Kiwi hit by speculation of interest rate cut this week, it fell 1 percent on Monday before a meeting of the country’s central bank where another cut in interest rates is expected, many say, not priced in by markets. The New Zealand dollar edged down to $0.6719, from a 1-month peak of $0.6787 set on Friday. Resistance was found around the $0.6800 level.USD/CHF: The pair has made a high of 1.00317 and declined till 0.99500 level. Intraday trend is bullish as long as support 0.9950 holds. On the higher side any break above 1.0030 will take the pair till 1.0090/1.0120. Overall bearish invalidation only above 1.0140. The pair’s minor support is around 1 and break below targets 0.9950/0.9900.Equities RecapEuropean shares started off strongly, steady gains on Wall Street and a weaker euro, while the dollar rose after upbeat jobs data on Friday strengthened investor confidence.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.3 percent. Japan’s Nikkei closed 1 percent higher, due to a weaker yen, having lost 2.2 percent on Friday.In China,the Shanghai Composite edged up 0.3 pct at 3,536.93 points while the CSI300 index also rose by 0.3 percent.Eurostoxx 50 Futures rose up 1.2 pct while Dax Futures and Cac 40 Futures were up 1.1 pct with FTSE Futures up 0.8 pct.Commodities RecapGold slipped from a 3-week high after the dollar strenghthened by upbeat U.S. jobs data from Friday that reinforced the view the U.S. Federal Reserve will raise interest rates. Spot gold dropped 0.3 percent at $1,083.06 an ounce at 1050 GMT. Oil prices slipped as Brent dropped 17 cents to $42.82 a barrel, not far from its 2015 low of $42.23 hit in August. Oil prices edged closer to 2015 lows on Monday after OPEC’s meeting ended without a reference to its output ceiling and a stronger dollar made it more expensive to hold crude positions.Treasuries RecapGerman Benchmark 10-year yields dropped 2.5 basis points to 0.67 percent while 2-year yields dropped 2.2 bps to just above -0.3 percent.Japanese Government Bond 10-year benchmark yield increased half a basis point to 0.330 percent as the 20-year yield also climbed half a basis point, to 1.070 percent.Euro zone government bond yields dropped on Monday after posting biggest daily gain in 5 years at short maturities on Thursday.
The material has been provided by InstaForex Company – www.instaforex.com