Market Roundup
•Canada Current Account (Q3) -11.1B,6.6B forecast, 2.7B previous
•EU French 12-Month BTF Auction 1.927%,2.275% previous
•EU French 3-Month BTF Auction 2.346%,1.341% previous
•EU French 6-Month BTF Auction 1.500%,1.838% previous
•US Nov Dallas Fed Mfg Business Index -14.4,-19.4 previous
•US 3-Month Bill Auction 4.285%,4.220%
•US 6-Month Bill Auction 4.550%, 4.520%
Looking Ahead - Economic Data (GMT )
•03:35 Japan 2-Year JGB Auction -0.031% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
Fxbeat
EUR/USD: The euro dipped on Monday as dollar clawed back earlier losses as a hawkish Federal Reserve official laid out the case for further rate hikes. The greenback added to gains after St. Louis Fed President James Bullard said the U.S. central bank needs to raise interest rates quite a bit further and then hold them there throughout next year and into 2024 to gain control of inflation and bring it back toward the Fed's 2% goal.Comments from Fed Chair Jerome Powell on Wednesday will be watched for any new signals on further tightening with key U.S. jobs data for November also due on Friday. The euro dipped 0.62% to $1.0403.Immediate resistance can be seen at 1.0439(Nov 25th high), an upside break can trigger rise towards 1.0476(23.6%fib).On the downside, immediate support is seen at 1.0335(38.2%fib), a break below could take the pair towards 1.0292(Nov 23rd low).
GBP/USD: Sterling initially gained on Monday, but gave up ground as Britain's murky economic outlook weighed on traders' minds. A survey released on Monday showed Britain's property market activity stalling in October and house price growth slowing to its lowest quarterly level since February 2020, as the fallout from former prime minister Liz Truss's "mini-budget" and a cost-of-living crisis continued to be felt. Market players pondering the Bank of England's (BoE) next move will be listening carefully to several BoE members due to speak this week, including BoE governor Andrew Bailey on Tuesday and chief economist Huw Pill on Wednesday. Immediate resistance can be seen at 1.2138( 23.6%fib), an upside break can trigger rise towards 1.2260 (Higher BBb).On the downside, immediate support is seen at 1.1945(11DMA), a break below could take the pair towards 1.1853 (38.2%fib).
USD/CAD: The Canadian dollar weakened to a one-week low against its U.S. counterpart on Monday, as anti-lockdown protests in China rattled investor nerves and data showed Canada’s current account balance swinging to a deficit. Canada posted a current account deficit of C$11.1 billion ($8.3 billion) in the third quarter after surpluses in the first two quarters of 2022. U.S. crude futures turned positive after falling to close to their lowest levels in a year, as rumors of an OPEC+ production cut offset concerns about China. The loonie was trading 0.8% lower at 1.3482 to the greenback , its biggest decline since Oct. 14.Immediate resistance can be seen at 1.3534 (23.6%fib), an upside break can trigger rise towards 1.3562(Nov 10th high).On the downside, immediate support is seen at 1.3425 (38.2% fib), a break below could take the pair towards 1.3378 (11 DMA).
USD/JPY: The dollar declined against Japanese yen on Monday as demand for Japanese yen increased on uncertainty amid protests in China against COVID-19 curbs and its impact on the world economy. China posted record-high COVID-19 infections on Monday, after a weekend of protests, raising worries about the management of the country's zero-COVID policy and its impact on the world's second-largest economy. Investors' focus this week will be on Federal Reserve Chair Jerome Powell's Wednesday speech on the U.S. economy and payrolls data for clues on the monetary policy outlook. The U.S. Labor Department's November nonfarm payrolls data due on Friday is expected to provide more clarity on the Fed's rate-hike path. The greenback was last down 0.23% to 138.82 Japanese yen. Strong resistance can be seen at 139.33(5DMA), an upside break can trigger rise towards 140.33(38.2%fib).On the downside, immediate support is seen at 137.68 (23.6% fib), a break below could take the pair towards 137.00(Psychological level).
Equities Recap
European stocks closed lower on Monday as worries about growing unrest in China over strict Covid curbs rendered the mood bearish.
UK's benchmark FTSE 100 closed down by 0.17 percent, Germany's Dax ended down by 1.09 percent, France’s CAC finished the day down by 0. 70percent.
U.S. stocks ended sharply lower on Monday after protests in major Chinese cities against strict COVID-19 policies sparked concerns about economic growth, while Apple Inc (AAPL.O) slid on worries about a hit to iPhone production.
Dow Jones closed down by 1.45 percent, S&P 500 ended down by 1.54 percent, Nasdaq finished the day down by 1.58 percent.
Commodities Recap
Gold prices slipped from a more than one-week high on Monday, as the dollar rose from session lows on hawkish comments from members of the U.S. Federal Reserve reiterating their fight against inflation.
Spot gold fell 0.8% to $1,741.35 per ounce by 1:47 p.m. ET (1847 GMT), after hitting its highest since Nov. 18 earlier in the day.U.S. gold futures settled down 0.8% at $1,740.3.
Global oil benchmarks pulled back from their lowest levels in nearly a year on Monday, with U.S. crude ending positive, bolstered by talk of an OPEC+ production cut that offset concerns about strict COVID-19 curbs in China, the world's biggest crude importer.
Price action was volatile. U.S. West Texas Intermediate (WTI) crude settled up 96 cents, or 1.3%, at $77.24, after earlier touching its lowest since December 2021 at $73.60.
