Market Roundup
• US GDP (QoQ) (Q3) 4.3%,3.3% forecast, 3.8% previous
•Canada GDP (MoM) (Oct) -0.3% ,-0.3% forecast, 0.2% previous
• US Core PCE Prices (Q3) 2.90%, 2.90% forecast, 2.60% previous
• US GDP Price Index (QoQ) (Q3) 3.7%,2.7% forecast, 2.1% previous
• US Durable Goods Orders (MoM) (Oct) -2.2% ,-1.5% forecast, 0.7% previous
• US Core Durable Goods Orders (MoM) (Oct) 0.2%, 0.3% forecast, 0.7% previous
• US Real Consumer Spending (Q3) 3.5%, 2.5% previous
• US GDP Sales (Q3) 4.6%, 7.5% previous
• US Corporate Profits (QoQ) (Q3) 4.4%, 0.2% previous
• US PCE Prices (Q3) 2.8%, 2.9% forecast, 2.1% previous
• US Durables Excluding Defense (MoM) (Oct) -1.5% ,0.1% previous
• US Goods Orders Non Defense Ex Air (MoM) (Oct) 0.5%, 1.1% previous
• US Durables Excluding Transport (MoM) 0.2% ,0.3% forecast, 0.7% previous
• US Redbook (YoY) 7.2% ,6.2% previous
• US Industrial Production (MoM) (Oct) -0.1% ,0.1% forecast, 0.1% previous
• US Industrial Production (YoY) (Oct) 2.20%, 1.90% previous
• US Capacity Utilization Rate (Oct) 75.9%, 75.9% forecast 76.0% previous
• US Manufacturing Production (MoM) (Oct) -0.4%, 0.0% previous
• US Industrial Production (MoM) (Nov) 0.2% ,-0.1% previous
• US Industrial Production (YoY) (Nov) 2.52%, 2.20% previous
• US Manufacturing Production (MoM) (Nov) 0.0%, -0.4% previous
• US Capacity Utilization Rate (Nov) 76.0%, 75.9% previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Corporate Services Price Index (CSPI) (YoY) 2.7% forecast,2.7% previous
Looking Ahead Events And Other Releases (GMT)
•23:50 Japan Monetary Policy Meeting Minutes
Currency Summaries
EUR/USD : The euro firmed on Tuesday as the U.S. dollar softened in a holiday-shortened week after data showing strong growth in the world's largest economy failed to shift sentiment on a currency under pressure from expectations of Federal Reserve interest rate cuts next year. The report bolstered views that the Fed will hold off on cutting rates at its meeting in late January, with the odds currently at 87% .U.S. gross domestic product rose at a 4.3% annualized rate in the last quarter, the first estimate from the Commerce Department's Bureau of Economic Analysis showed. Economists polled by Reuters had forecast GDP would rise at a 3.3% pace in the third quarter. The euro was last at $1.1775 , up 0.2% on the day. Immediate resistance can be seen at 1.1795(23.6%fib), an upside break can trigger rise towards 1.1828(Higher BB).On the downside, immediate support is seen at 1.1731(38.2%fib), a break below could take the pair towards 1.1680(50%fib).
GBP/USD: The pound rose to a near three-month high against a broadly weaker U.S. dollar on Tuesday, as investors balanced signs of improvement in the UK economy against lingering concerns over stubborn inflation. Data released on Monday showed Britain’s economy grew by 0.1% in the July-to-September period, in line with the Office for National Statistics’ initial estimate. The ONS also noted that revisions to the data pointed to stronger income flows into the UK from overseas foreign direct investment than previously reported. Sterling has gained around 1% since the Bank of England delivered a widely anticipated rate cut last Thursday.Sterling rose 0.42% against the dollar to $1.3517, its highest level since October 1, extending last week's gains and putting it on track for its best month out of the last four. Immediate resistance can be seen at 1.3534(23.6%fib), an upside break can trigger rise towards 1.3564(Higher BB).On the downside, immediate support is seen at 1.3424 (38.2%fib), a break below could take the pair towards 1.3315(SMA20).
USD/CAD: The Canadian dollar firmed against its U.S. counterpart on Tuesday as higher oil prices offset soft Canadian GDP data. Economic output in Canada fell 0.3% in October, marking its biggest drop in almost three years and exceeding forecasts for a 0.2% decline, with early data showing a 0.1% rebound in November. The price of oil was trading 0.6% higher at $58.35 a barrel, supported by supply disruption fears after Ukrainian attacks on Russian vessels and piers. Oil is one of Canada's major exports.Meanwhile,minutes released Tuesday showed Bank of Canada Governing Council agreed ahead of the December 10 policy decision that uncertainty around the outlook made it hard to judge whether the next interest-rate move would be a hike or a cut. Immediate resistance can be seen at 1.3752 (Daily high), an upside break can trigger rise towards 1.3842 (38.2%fib).On the downside, immediate support is seen at 1.3680(23.6%fib), a break below could take the pair towards 1.3637 (Lower BB).
USD/JPY: The U.S. dollar slipped on Tuesday as Japanese yen firmed after Tokyo signaled its readiness to support the battered currency. Japan’s top currency diplomat, Atsushi Mimura, said on Monday that authorities would take “appropriate” action against excessive foreign exchange moves, signaling that intervention remains possible after last week’s central bank meeting triggered renewed yen weakness.On Tuesday, Finance Ministry official Katayama added that Japan can act freely against excessive yen movements, marking the strongest indication yet that authorities are prepared to step in to curb rapid currency depreciation. Japanese officials are increasingly concerned about the weak yen, which is raising import costs, fueling inflation, and eroding household purchasing power. Immediate resistance can be seen at 157.80(23.6%fib) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at 155.91 (SMA 20) a break below could take the pair towards 155.61 (38.2%fib).
Equities Recap
European shares ended at a record high on Tuesday, led by gains in the healthcare sector after Novo Nordisk secured U.S. approval for its weight-loss pill.
UK's benchmark FTSE 100 closed up by 0.24 percent, Germany's Dax ended up by 0.23 percent, France’s CAC finished the day down by 0.21 percent.
Wall Street ended higher on Tuesday, as upbeat economic data on growth drove bond yields up and supported growth names, helping the S&P 500 notch a record close.
Dow Jones closed up by 0.16 % percent, S&P 500 closed up by 0.45 % percent, Nasdaq settled up by 0.57% percent.
Commodities Recap
Spot gold added 1.1% to $4,492.99 per ounce after hitting a record $4,497.55.Bullion has surged about 70% this year, driven by geopolitical tensions, U.S. rate cuts, strong central bank buying and robust investment demand.
U.S. gold futures GCcv1 for February delivery settled 0.8% higher at $4,505.7.
Oil prices settled higher on Tuesday as markets weighed stronger-than-expected U.S. economic growth alongside rising risks of supply disruptions from Venezuela and Russia.
Brent crude futures settled 31 cents, or 0.5%, higher at $62.38 a barrel. U.S. West Texas Intermediate crude was up 37 cents, or 0.64%, at $58.38.
