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America’s Roundup : Dollar edges lower as U.S.-China trade talks continue, Wall Street climbs, Gold steadies near two-week low, Oil gains, bolstered again by US-China trade talks-November 27th,2019

Market Roundup

• Consumer confidence in November weaker than expected

• U.S. Oct Goods Trade Balance  -66.53B, -71.30B forecast, -70.55B previous

• U.S. Oct Retail Inventories Ex Auto  0.6%,0.2% previous

• U.S. Wholesale Inventories (MoM)  0.2%,0.2% forecast, -0.4% previous

• Canada Corporate Profits (QoQ) 0.4%. 5.2% previous                   

• U.S. Redbook (YoY)  4.3%,4.1% previous             

• U.S Redbook (MoM) -0.4%,-0.3% previous

• U.S Nov CB Consumer Confidence 125.5, 127.0 forecast, 126.1 previous               

• U.S. Oct New Home Sales  733K, 709K forecast, 738K previous   

• U.S. Oct New Home Sales (MoM)  -0.7%,1.1% forecast, 4.5% previous

• U.S. Nov Richmond Manufacturing Index  -1, 6 forecast                , 8 previous

• U.S. Nov Richmond Manufacturing Shipments  -2, 4 previous

• U.S. Nov Dallas Fed Services Revenues  12.2, 15.4 previous                                                                                                           Looking Ahead - Economic Data (GMT)

• 21:45 New Zealand Oct Exports   4.47B previous

• 21:45 New Zealand Oct  Imports  5.71B   previous             

• 21:45 New Zealand Oct  Trade Balance (MoM)  -1,621M, -1,242M previous           

• 00:30 Australia  Construction Work Done (QoQ) (Q3)

• 01:30   Chinese Oct Industrial profit (YoY)  -5.30% previous

• 01:30   Chinese Industrial profit YTD  -2.1% previous

Looking Ahead - Events, Other Releases (GMT)

• 01:30 Japan BoJ Board Member Sakurai Speaks

• 22:00  New Zealand RBNZ Gov Speaks

Currency Summaries

EUR/USD: The euro strengthened against the U.S. dollar on Tuesday, after U.S. President Donald Trump said the United States and China were close to agreeing on the first phase of a trade deal. Investor sentiment took heart in a steady patter of encouraging news about the prolonged trade talks, providing hope the on-again, off-again talks after 16 months of negotiations appeared to be drawing nearer to conclusion.Trump said Washington was in the “final throes” of work on a deal that would defuse the trade war with Beijing, but he also underscored Washington’s support for protesters in Hong Kong, a potential sore point with China. Immediate resistance can be seen at 1.1041 (50 DMA), an upside break can trigger rise towards 1.1078 (100 DMA).On the downside, immediate support is seen at 1.0987 (14th Nov low), a break below could take the pair towards   1.0900 (Psychological level).

GBP/USD: Sterling declined against dollar on Tuesday after a second opinion poll showed the Conservative Party’s lead is narrowing before the British election next month.Prime Minister Boris Johnson’s Conservatives have held an often double-digit lead over the opposition Labour Party in the polls for weeks. Hopes that a Johnson victory would end over three years of uncertainty over Brexit have lifted the pound, despite concern about any no-deal exit from the European Union.A Kantar poll published on Tuesday showed Labour had squeezed the Conservative advantage to 11 points from 18 over the past week.  Immediate resistance can be seen at 1.2890 (11 DMA), an upside break can trigger rise towards 1.2987 (Nov 18th high).On the downside, immediate support is seen at 1.2788 (Lower BB), a break below could take the pair towards 1.2764 (300 DMA).

USD/CAD: The Canadian dollar strengthened against the greenback on Tuesday, paring its decline since October as optimism rose on U.S.-China trade talks and after a deal was reached to end a railway strike that threatened to slow Canada's economic growth.  At (2248 GMT), the Canadian dollar was trading 0.2% higher at 1.3287 to the greenback.The currency traded in a range of 1.3273 to 1.3316.The loonie has been pressured since October by a more dovish stance from the Bank of Canada. Last Wednesday, it hit its weakest intraday level since Oct. 10 at 1.3328. Immediate resistance can be seen at 1.3335 (Hgher BB), an upside break can trigger rise towards 1.3345 (Oct 10th high).On the downside, immediate support is seen at 1.3215 (50 DMA), a break below could take the pair towards 1.3200 (Psychological level).

USD/JPY: The dollar was little changed against the Japanese yen on Tuesday, as traders looked to the latest developments in the U.S.-China trade talks for direction. The United States and China are close to agreement on the first phase of a trade deal, U.S. President Donald Trump said on Tuesday, after top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues. The dollar was last trading neutral at 108.96 yen, after rising as high as 109.205, its highest since Nov. 12. Strong resistance can be seen at 109.50 (Nov 7th High), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.27 (50 DMA), a break below could take the pair towards 107.89 (4th Nov  ).

Equities Recap

European stocks rose for the third straight session on Tuesday, lifted by hopes that the ongoing negotiations between United States and China would yield a trade truce.          

The UK's benchmark FTSE 100 closed up by 0.09 percent, Germany's Dax ended up by 0.08 percent, and France’s CAC finished the down by 0.08 percent.

U.S. stocks crawled higher on Tuesday, and all three major Wall Street indexes notched record levels, as upbeat comments by President Donald Trump on trade talks eclipsed some softer-than-anticipated economic data.

Dow Jones closed up by 0.20 percent, S&P 500 ended up 0.22 percent, Nasdaq finished the day up by 0.18 percent.

Treasuries Recap

U.S. Treasury yields fell alongside British government debt on Tuesday, while expectations that the Federal Reserve will keep rates on hold kept the yield curve near its flattest level in almost a month.

Benchmark 10-year note yields were last 1.741%, down from 1.764% late Monday. The yield curve between two-year and 10-year notes was 14 basis points, after reaching 13 basis points on Monday, which was the flattest level since Oct. 30.

Commodities Recap

Gold was steady on Tuesday as traders awaited further developments in the trade negotiations between the United States and China while a firm equities market kept bullion near a two-week low hit earlier in the day.

 Spot gold was steady at $1,454.67 an ounce at 1340 GMT. U.S. gold futures  edged down 0.2% to $1,454.50.

Oil prices rose on Tuesday after news that U.S. and Chinese officials discussed trade, while predictions for a weekly draw on U.S. crude stockpiles lent some support as well.

Brent crude futures   gained 62 cents to settle at $64.27 a barrel, while West Texas Intermediate crude  rose 40 cents to end at $58.41 a barrel.

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