Market Roundup
• Canada Housing Starts (Nov) 254.1K, 250.0K forecast, 232.2K previous
• Canada Core CPI (MoM) (Nov) -0.1%, 0.6% previous
• Canada Core CPI (YoY) (Nov) 2.9%, 2.9% previous
• Canada CPI (MoM) (Nov) 0.1%, 0.1%, forecast ,0.2% previous
• Canada US NY Empire State Manufacturing Index (Dec) -3.90, 10.00 forecast, 18.70 previous
• Canada Common CPI (YoY) (Nov) 2.8%, 2.8% forecast, 2.7% previous
• Canada CPI (YoY) (Nov) 2.2%, 2.3%, 2.2% previous
• Canada Median CPI (YoY) (Nov) 2.8%, 2.9% forecast, 3.0% previous
• Canada Trimmed CPI (YoY) (Nov) 2.8%, 2.9% forecast, 3.0% previous
• Canada Manufacturing Sales (MoM) (Oct) -1.0%, -1.1% forecast, 3.6% previous
Looking Ahead Economic Data (GMT)
•00:00 New Zealand Net Debt Forecast (Jul) 42.70% previous
•00:00 New Zealand Economic Forecast (Jul) -14.740B previous
•00:00 New Zealand Budget Balance (Jul) -9.990B previous
• 01:00 Japan au Jibun Bank Services PMI (Dec) 53.2 previous
• 01:00 Japan Manufacturing & Services PMI (Dec) 52.00 previous
• 01:00 Japan au Jibun Bank Manufacturing PMI (Dec) 48.7 previous
Looking Ahead Events and Other Releases(GMT)
•No Events Ahead
EUR/USD : The euro firmed against the dollar on Monday as investors waited cautiously for the week's busy schedule of U.S. economic data releases including the jobs report and retail sales as well as the latest inflation reading.After digesting last week's update from the Federal Reserve, investors were turning their attention to economic data that was delayed by the U.S. government shutdown, including the jobs report for November and the monthly consumer price index (CPI) inflation report.New York Fed President John Williams said on Monday the U.S. central bank's interest rate cut last week leaves it in a good position to deal with what lies ahead, adding that he sees inflation moderating amid cooling in the job market. Immediate resistance can be seen at 1.1767(Higher BB), an upside break can trigger rise towards 1.1791(23.6%fib).On the downside, immediate support is seen at 1.1670(50%fib), a break below could take the pair towards 1.1618(SMA20).
GBP/USD: Sterling steadied against the dollar on Monday ahead of a week packed with key central bank decisions and economic data that could guide near-term policy expectations. UK wage growth is due Tuesday, followed by consumer inflation on Wednesday.In the U.S., a backlog of data delayed by the government shutdown will be released this week, including the November jobs report on Tuesday and inflation figures on Thursday, providing investors with a long-awaited update on the world’s largest economy.Central bank moves expected this week include a 25-bps rate hike by the Bank of Japan to 0.75%, a possible 25-bps cut by the Bank of England to 3.75%, and rate holds from the European Central Bank, Sweden’s Riksbank, and Norway’s Norges Bank. Immediate resistance can be seen at 1.3397 (38.2%fib B), an upside break can trigger rise towards 1.3472(Higher BB).On the downside, immediate support is seen at 1.3325(50%fib), a break below could take the pair towards 1.3250(61.8%fib).
USD/CAD: The Canadian dollar steadied on Monday against its U.S. counterpart as oil prices fell and domestic data showed inflation running at a cooler than expected pace.Canada's annual inflation rate was 2.2% in November, unchanged from the previous month and below expectations for a 2.3% rate. CPI-median and CPI-trim, the Bank of Canada's preferred measures of core inflation, both eased to 2.8% from 3%. Investors were pricing in about 23 basis points of tightening from the Bank of Canada next year, down from 35 basis points before the central bank's interest rate decision last Wednesday. The BoC left its benchmark rate on hold at a three-year low of 2.25% and signaled a possible end to its easing campaign. The loonie was trading nearly unchanged at 1.3775 per U.S. dollar , after earlier touching its strongest intraday level since September 17 at 1.3746. Immediate resistance can be seen at 1.3795 (Dec 12th high), an upside break can trigger rise towards 1.3838 (38.2%fib).On the downside, immediate support is seen at 1.3731(23.6%fib), a break below could take the pair towards 1.3690 (Lower BB).
USD/JPY: The U.S. dollar slipped against the yen on Monday as the Japanese currency strengthened amid growing expectations of a Bank of Japan rate hike. The BoJ is widely anticipated to raise interest rates on Friday, giving the yen an edge over the dollar, which could face pressure if U.S. rate cuts arrive earlier than expected next year. The central bank is expected to maintain its commitment to raising rates while stressing that the pace will depend on economic responses to each hike.The dollar index , which measures the U.S. currency against a basket of rivals including the yen and the euro, was a shade lower by 0.09% at 98.318.The dollar was last down 0.31% against the yen, trading at 155.345 to the dollar.Immediate resistance can be seen at 155.85(38.2%fib) an upside break can trigger rise towards 157.40(Higher BB) .On the downside, immediate support is seen at 154.60 (Lower BB) a break below could take the pair towards 154.24 (38.2%fib).
Equities Recap
European shares rose on Monday, led by banks , as investors returned to risk assets ahead of key central bank decisions and U.S. economic data.
UK's benchmark FTSE 100 closed up by 1.06 percent, Germany's Dax ended up by 0.18 percent, France’s CAC finished the day up by 0.70 percent.
Wall Street fell on Monday as investors awaited key economic data and monitored Fed candidate reports and policymakers’ comments for hints on the interest rate outlook.
Dow Jones closed down by 0.09 % percent, S&P 500 closed down by 0.18 % percent, Nasdaq settled down by 0.59% percent.
Commodities Recap
Spot gold trimmed earlier gains on Monday after progress in talks between U.S. officials and Ukrainian President Volodymyr Zelenskiy on ending the war, as traders awaited key U.S. jobs data.
Spot gold was up 0.2% at $4,309.82 an ounce by 01:55 p.m. ET (18:55 GMT), after rising more than 1% earlier in the session. U.S. gold futures settled 0.2% higher at $4,335.2 an ounce.
Oil prices slid on Monday as investors balanced disruptions linked to escalating U.S.-Venezuelan tensions with oversupply concerns and the impact of a potential Russia-Ukraine peace deal.
Brent crude futures settled down 56 cents, or 0.92%, to $60.56 a barrel, and U.S. West Texas Intermediate crude settled at $56.82 a barrel, down 62 cents, or 1.08%.


America’s Roundup: Dollar soft, euro, sterling hit new highs,Wall Street ends mixed, Gold climbs, Oil retreats 



