Market Roundup
• U.S., China agree to roll back some tariffs
• Wall Street at record highs
• Russia Nov Industrial Production (YoY) 0.3%,2.6% forecast, 2.6% previous
• US Dec NY Empire State Manufacturing Index 3.50, 4.00 forecast, 2.90 previous
• Canada Oct Foreign Securities Purchases 11.32B, 5.02B previous
• Canada Oct Foreign Securities Purchases by Canadians 2.03B, -2.58B previous
• US Dec Manufacturing PMI 52.5, 52.6 forecast, 52.6 previous
• US Dec Services PMI 52.2, 52.0 forecast, 51.6 previous
• US Dec NAHB Housing Market Index 76, 70 forecast, 71 previous
• Canada Oct Budget Balance -3.25B, -0.58B previous
• Canada Oct Budget Balance (YoY) -9.05B
• US 3-Month Bill Auction 0.000%, 1.520% previous
• US 6-Month Bill Auction 0.000%,1.520% previous
Looking Ahead - Economic Data (GMT)
• 20:00 New Zealand Westpac Consumer Sentiment (Q4) 103.1 previous
• 00:00 New Zealand Dec ANZ Business Confidence -26.4 previous
• 00:00 New Zealand Dec NBNZ Own Activity 12.9% previous
• 00:30 Australia Oct Home Loans (MoM) 1.4% previous
• 00:30 Australia Invest Housing Finance (MoM) 1.1% previous
• 02:00 New Zealand RBNZ Offshore Holdings 49.90% previous
Looking Ahead - Events, Other Releases (GMT)
• 00:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro edged higher against the dollar on Monday, as dollar dipped in anticipation of further details on the U.S.-China trade agreement. U.S. President Donald Trump’s top trade negotiator, Robert Lighthizer, praised a “phase one” U.S.-China trade deal which is expected to nearly double U.S. exports to China over the next two years, while China remained cautious ahead of the signing of the agreement. The euro , which had spiked to a four-month high of $1.1199 against the dollar on Friday, retraced most of those gains,it was last trading at $1.1152. Immediate resistance can be seen at 1.1200 (Dec 13th high), an upside break can trigger rise towards 1.1249 (Aug 6th high).On the downside, immediate support is seen at 1.1122 (5 DMA), a break below could take the pair towards 1.1097 (11 DMA).
GBP/USD: Sterling strengthened against greenback on Monday, as sterling was bolstered by expectations that last week's resounding election win for British Prime Boris Johnson's Conservative Party will end near-term Brexit uncertainty. Over the weekend, Conservative politicians repeated their pledge to bring the UK out of the European Union by Jan. 31 and reach a new trade deal with the EU by the end of 2020. The pound rose by as much as 0.7% versus a slightly weaker dollar in early US trading, last up 0.1% at $1.3346 . Immediate resistance can be seen at 1.3512 (Dec 13th high), an upside break can trigger rise towards 1.3600 (Psychological level).On the downside, immediate support is seen at 1.3337 (5 DMA), a break below could take the pair towards 1.3114 (11 DMA).
USD/CAD: The Canadian dollar strengthened to a near seven-week high against its U.S. counterpart on Monday after a U.S.-China trade agreement buoyed investor sentiment and domestic data showed that home sales rose for the ninth straight month. The United States and China cooled their trade war on Friday, announcing a "phase one" agreement that reduces some U.S. tariffs in exchange for what U.S. officials said would be a big jump in Chinese purchases of American farm products and other goods. At (1512 GMT), the Canadian dollar was trading 0.2% higher at 1.3138 to the greenback. Immediate resistance can be seen at 1.3192 (11 DMA), an upside break can trigger rise towards 1.3242 (21 DMA).On the downside, immediate support is seen at 1.3117 (Lower BB), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Monday, as a preliminary U.S.-China trade deal pointed to stronger global growth. The “phase one” deal suspended a threatened round of U.S. tariffs on $156 billion of Chinese imports that was scheduled to take effect on Sunday. The United States also agreed to halve the tariff rate, to 7.5%, on $120 billion worth of Chinese goods. The Japanese yen weakened 0.25% versus the greenback at 109.57 per dollar.Strong resistance can be seen at 109.69 (Higher BB), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.86 (11DMA), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European shares hit an all-time high on Monday as a “totally done” initial trade deal between the United States and China kept the momentum rolling after a rally last week spurred by Britain’s election.
The UK's benchmark FTSE 100 was up by 2.25 percent, Germany's Dax ended up by 0.94 percent, and France’s CAC finished the up by 1.23 percent.
Wall Street hit record highs for the third straight session on Monday, as upbeat domestic data from China and cooling trade tensions between Washington and Beijing improved investor outlook on global economic growth.
At ( GMT 15:04), Dow Jones was last trading at 0.46 percent, S&P 500 trading at 0.78 percent, Nasdaq was trading at 0.99 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as traders took an optimistic view of a preliminary U.S.-China trade deal and drove stocks to new highs.
The benchmark 10-year yield was 5.9 basis points higher at 1.8801% in midday trading, reflecting greater investor appetite for risk.
Commodities Recap
Gold held steady on Monday as the dollar eased and investors sought clarity on the fine print of the"phase one" U.S.-China trade deal, offsetting strong gains in the equities markets.
Spot gold was little changed at $1,476.19 per ounce by (1835 GMT). Prices gained 1.1% last week as the world's two largest economies negotiated ahead of another potential round of tariffs.U.S. gold futures settled mostly unchanged at $1,480.50 per ounce.
Oil prices rose slightly Monday on hopes energy demand will benefit from the trade deal between the United States and China announced last week, but prices remained below the previous session’s three-month highs.
Brent crude oil futures were up 23 cents, or 0.4%, at $65.45 a barrel by 12:40 p.m. EST (1640 GMT), a session after hitting their highest since Sept. 17 at $65.79.West Texas Intermediate crude was up 8 cents, or 0.2%, at $60.15 a barrel.
