Market Roundup
• Pound skids 1% as hard Brexit fears re-emerge
• Russia Nov PPI (YoY) -6.3%,-4.9% previous
• Russia Nov PPI (MoM) -0.8%,-0.2% previous
• US Nov Building Permits (MoM) 1.4%,5.0% previous
• US Nov Building Permits 1.482M, 1.410M forecast, 1.461M previous
• US Nov Housing Starts (MoM) 3.2%,4.5% previous
• US Nov Housing Starts 1.365M , 1.345M forecast, 1.323M previous
• Canada Oct Manufacturing Sales (MoM) -0.7%,0.2% forecast, -0.2% previous
• US Redbook (MoM) -3.8%,-3.6% previous
• US Redbook (YoY) 4.6%,5.0% previous
• US Nov Capacity Utilization Rate 77.3%,77.4% forecast, 76.6% previous
• US Nov Industrial Production (MoM) 1.1%,0.8% forecast, -0.9% previous
• US Nov Industrial Production (YoY) -0.75%,-1.30% previous
• US Nov Manufacturing Production (MoM) 1.1%,0.7% forecast, -0.7% previous
• US Oct JOLTs Job Openings 7.267M, 7.018M forecast, 7.032M previous
• 21:45 New Zealand Current Account (YoY) (Q3) -10.12B forecast, -10.23B previous
• 21:45 New Zealand Current Account (QoQ) (Q3) -6.34B, -1.11B previous
• 21:45 New Zealand Current Account % of GDP (Q3) -3.40%,-3.40% previous
• 23:30 Australia MI Leading Index (MoM) -0.1% previous
•23:50 Japan Nov Exports (YoY) -8.6%,-9.2% previous
•23:50 Japan Nov Imports (YoY) -12.7% , -14.8% previous
•23:50 Japan Nov Trade Balance -369.0B , 15.7B previous
• 00:00 New Zealand ANZ Business Confidence-26.4 previous
Looking Ahead - Events, Other Releases (GMT)
• 10:15 US FOMC Member Brainard Speaks
Currency Summaries
EUR/USD: The euro was little changed against the dollar on Tuesday, as investors adjusted their previous position after British Prime Minister Boris Johnson put a no-deal exit from the European Union back on the table. Britain on Tuesday set a hard deadline of December 2020 to reach a new trade deal with the EU, trying to pressure Brussels to move more quickly to seal an accord. The dollar index was slightly higher, up 0.20% at 97.214, driven by the fall in the pound. Immediate resistance can be seen at 1.1174 (Higher BB), an upside break can trigger rise towards 1.1200 (Dec 13th high).On the downside, immediate support is seen at 1.1038 (5 DMA), a break below could take the pair towards 1.1109 (11 DMA).
GBP/USD: Sterling declined against greenback on Tuesday, after reports showed that Britain’s prime minister was ready to play rough in Brexit talks brought December’s cross-market rally to a halt. Johnson is set to use his control of parliament after last week’s resounding election victory to ban any extension of the Brexit transition period beyond 2020, a bold move that spooked markets.The news knocked the pound below $1.32 level. The pound was last trading at $1.3131, down 1.49% on the day. Strong 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 1.3063 (21 DMA), a break below could take the pair towards 1.2934 (50 DMA).
USD/CAD: The Canadian dollar weakened slightly against the greenback on Tuesday, retreating from a near seven-week high the day before, as worries about Brexit resurfaced and domestic data showed a surprise decline in manufacturing shipments. Canadian factory sales decreased by 0.7% in October from September as the United Auto Workers' strike in the United States weighed on transportation equipment sales, Statistics Canada said. Analysts had forecast no change. Immediate resistance can be seen at 1.3186 (9 DMA), an upside break can trigger rise towards 1.3235 (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 dipped against the Japanese yen on Tuesday, as concerns about Britain's setting a hard deadline to reach a new trade deal with the European Union increased demand for safe haven assets. Japanese yen gained on news that British Prime Minister Boris Johnson will use the prospect of a Brexit cliff-edge at the end of 2020 to demand the European Union gives him a comprehensive free trade deal in less than 11 months. Strong resistance can be seen at 109.76 (Higher BB), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.06 (9 DMA), a break below could take the pair towards 108.62 (Dec 12th low).
Equities Recap
European shares bucked a four day winning streak on Tuesday, weighed by Unilever after a sales warning, while fears that Britain will take a hard line on the Brexit transition kept investors on edge.
The UK's benchmark FTSE 100 closed up by 0.08 percent, Germany's Dax ended down by 0.89 percent, and France’s CAC finished the day down by 0.39 percent.
Wall Street’s major indexes inched higher on Tuesday, extending their record-setting rally, as strong housing and manufacturing data bolstered investors’ confidence in the U.S. economy.
Dow Jones closed up by 0.11 percent, S&P 500 ended up 0.03 percent, Nasdaq finished the day up by 0.10 percent.
Treasuries Recap
U.S. Treasury yields were steady on Tuesday as investors stayed cautious despite strong U.S. housing data.
The benchmark 10-year yield was up less than a basis point to 1.8923% in trading on Tuesday afternoon, after falling as low as 1.8520% during in the session..
Commodities Recap
Gold steadied on Tuesday as robust U.S. manufacturing data lifted risk appetite and offset lingering doubts on U.S.-China trade, while scarce palladium retreated after its record run toward the $2,000 an ounce level.
Spot gold was little changed at $1,476.23 per ounce by 01:32 p.m. ET (1832 GMT). U.S. gold futures settled mostly unchanged at $1,480.60.
Oil prices gained on Tuesday supported by hopes last week’s preliminary U.S.-China trade deal will bolster demand in 2020, after the prolonged dispute between the world’s two largest economies dented global growth and market sentiment.
Brent crude, the global benchmark, settled up 76 cents at $66.10 a barrel, while U.S. West Texas Intermediate crude added 73 cents to settle at $60.94 a barrel.
