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America's Roundup: Dollar gains as Fed's Clarida backs further rate hikes, Wall Street turns positive, Gold falls, Oil prices stay close to year lows-November 28th, 2018

Market Roundup

• Fed's Clarida more sensitive to data, still backs U.S. rate hikes.

• Fed's Clarida expects U.S. growth at least well into 2019.

• Fed’s Bullard expects slower growth over next two years, making it 'tougher' to continue rate increases.

• Fed’s Bullard says economy, jobs market otherwise strong, with only moderate financial risks.

• White House 'disappointed' in China trade response, economic adviser Kudlow says.

• Economic adviser Kudlow says Trump believes there is a good possibility a deal can be made with China's Xi.

• British PM May rebuts Trump trade comments, says UK-U.S. deal is on track.

• Cryptocurrencies to survive sell-off -Allianz's El-Erian.

• EU to take next step in disciplinary action over Italy debt this week.

• US Nov Consumer Confidence, 135.7, 135.9 forecast, 137.9 previous, 137.9 revised.

• US Nov Texas Service Sect Outlook, 11.4, 14.1 previous.

• US Nov Dallas Fed Services Revenues, 21.4, 19.4 previous.

• US Sep CaseShiller 20 YY, 5.1%, 5.3% forecast 5.5% previous.

Looking Ahead - Economic Data (GMT)

• 28 Nov 00:30 Australia Q3 Construction Work Done, 1.0% forecast, 1.6% previous

Looking Ahead - Events, Other Releases (GMT)

• 27 Nov 20:00 Reserve Bank of New Zealand releases half-yearly financial stability report in Wellington

• 28 Nov 07:00 BoE publishes Financial Stability report in London

• 28 Nov 12:05 ECB board member Benoit Coeure speaks at the Foreign Exchange Contact Group meeting in Frankfurt

• 28 Nov 13:00 ECB Vice President Luis de Guindos gives speaks at a conference in Luxembourg

• 28 Nov 15:20 ECB board member Peter Praet chairs a panel session at a conference in Luxembourg

• 28 Nov 17:00 Fed Chairman Jerome Powell speaks at the Economic Club of New York Signature Luncheon

Currency Summaries

EUR/USD is likely to find support at 1.1250 levels and currently trading at 1.1291 levels. The pair has made session high at 1.1329 and hit lows at 1.1275 levels. The euro declined against the dollar in the US session on Tuesday after Federal Reserve Vice Chair Richard Clarida backed further interest rate hikes, taking a less dovish stance than some investors had anticipated. Clarida noted the importance of monitoring economic data as the U.S. central bank approached a neutral stance and stressed how difficult it was for the Fed to determine both the neutral interest rate and the maximum level of unemployment. The greenback was also bolstered by concerns about trade tensions with China, after U.S. President Donald Trump said he expects to raise tariffs on $200 billion in Chinese imports to 25 percent from 10 percent currently. Trump and Chinese President Xi Jinping are scheduled to meet and discuss contentious trade matters at the G20 summit to be held in Buenos Aires on Nov. 30 and Dec. 1.The dollar index against a basket of currencies rose as high as 97.497, the highest since Nov. 13.A speech by Fed Chairman Jerome Powell on Wednesday and minutes from the Fed’s Nov. 7-8 meeting on Thursday will be evaluated for further indications of how many more times the U.S. central bank is likely to hike interest rates.

 GBP/USD is supported in the range of 1.2700 levels and currently trading at 1.2728 levels. It reached session high at 1.2774 and dropped to session low at 1.2721 levels. Britain's pound declined against the dollar on Tuesday as doubts grew about whether British Prime Minister Theresa May can get a Brexit agreement fuelled a selloff in British pound.May began a tour of the United Kingdom to drum up support for her Brexit divorce deal with the European Union but her deputy said parliament might reject it if asked to vote on it now. May's attempts to win over critics in her Conservative and opposition parties in order to get her deal approved are seen by investors as increasingly fraught. Against the dollar, the British currency fell more than half a percent to $1.2728, its lowest level in nearly two weeks. It also fell a third of a percent against a weak euro to 88.87 pence. Sterling’s losses were compounded by comments from U.S. President Donald Trump that a Brexit deal could hamper trade ties with the United States. The pound on Tuesday broke through a key support level of around $1.2770, which it had managed to stay above in the last few trading sessions.

USD/CAD is supported at 1.3258 levels and is trading at 1.3292 levels. It has made session high at 1.3329 and lows at 1.3288 levels. The Canadian dollar edged lower against its U.S. counterpart on Tuesday as concern about world trade tensions weighed on stocks and boosted the greenback. The U.S. dollar rose to its highest level in almost two weeks against its major rivals, after President Donald Trump said he would push ahead with tariffs on Chinese goods. U.S. stocks opened lower after Trump's comments dampened hopes of resolving the ongoing trade spat between the two economic giants at the upcoming G20 Summit. Canada exports many commodities, including oil, and runs a current account deficit, so its economy could be hurt if the global flow of trade or capital slows.The price of oil was supported by expectations that oil exporters would agree to cut output at an OPEC meeting next week. U.S. crude prices were up 0.1 percent at $51.67 a barrel. The Canadian dollar was last  trading 0.2 percent lower at 1.3296 to the greenback. The currency, which last Tuesday touched its weakest level in nearly five months at 1.3326.

AUD/USD is supported around 0.7200 levels and currently trading at 0.7223 levels. It hit session high at 0.7243 and made session lows at 0.7197 levels. The Australian dollar eased against dollar on Tuesday as concerns about trade talks between the leaders of the United States and China weighed on risk-sensitive Australian dollar. The Aussie was last trading around $0.7223, not far from last week's low of $0.7186. The trade-sensitive currency has so far enjoyed solid gains in November, rising about 2 percent as investors had hoped for some resolution in the bitter Sino-U.S. tariff battle. U.S. President Donald Trump, however, put a damper on such optimism in an interview with the Wall Street Journal late on Monday. He told the newspaper he expects to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from 10 percent currently. He said it was "highly unlikely" he would accept China's request to hold off on the increase, planned for Jan. 1.Trump and his Chinese counterpart Xi Jinping are set to meet later this week at the G20 summit in Buenos Aires.

Equities Recap

European shares fell on Tuesday after a new threat by Washington to impose more tariffs on Chinese products and fears the trade war could spread to Europe after a report in Germany of possible new U.S. taxes on imported cars.

UK's benchmark FTSE 100 closed down by 0.2 percent, the pan-European FTSEurofirst 300 ended the day down by 0.19 percent, Germany's Dax ended down by 0.4 percent, France’s CAC finished the day down by 0.2 percent.

U.S. stocks made small gains on Tuesday after White House economic adviser Larry Kudlow said a meeting between President Donald Trump and his Chinese counterpart on Saturday was an opportunity to "turn the page" on a trade war.

Dow Jones closed up by 0.45 percent, S&P 500 ended up by 0.34 percent, Nasdaq finished the day up by 0.01 percent.

Commodities Recap

Gold fell on Tuesday to its lowest in more than a week, as the dollar rallied after comments from U.S. Federal Reserve Vice Chair Richard Clarida bolstered expectations that the central bank would continue raising interest rates.

Spot gold fell 0.6 percent to $1,214.64 per ounce at 1:54 p.m. EST (1854 GMT). During the session it touched its lowest since Nov. 15 at $1,211.36.U.S. gold futures settled down $9, or 0.7 percent, at $1,213.40.

Oil prices fell more than 1 percent on Tuesday, in conjunction with sagging stock markets after U.S. President Donald Trump threatened more tariffs on Chinese imports ahead of the coming G20 summit.

Brent crude futures fell $1.00 to $59.48 a barrel, a 1.7 percent loss, 12:53 p.m. EST (1753 GMT). U.S. West Texas Intermediate (WTI) crude futures fell 84 cents to $50.79 a barrel, a 1.6 percent loss.

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March 20 11:00 UTC Released

PTCurrent Account Balance

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-0.741 Bln EU

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-1.23 Bln EU

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ZARetail Sales YY

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1.2 %

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1.1 %

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-1.4 %

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-1541 %

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-1541 %

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2016 bln ARS

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