Market Roundup
• French 12-Month BTF Auction-0.653%, 0.638% previous
• French 3-Month BTF Auction-0.676%, -0.673% previous
• French 6-Month BTF Auction 0.648%,-0.652% previous
• Canada Oct RBC Manufacturing PMI 55.5,56.0 previous
• US Oct Manufacturing PMI 53.4, 53.4, 53.3 previous
• US Oct ISM Manufacturing Prices 65.5. 60.0 forecast, 62.8 previous
• US Oct ISM Manufacturing PMI 59.3,55.8 forecast, 55.4 previous
• US Oct ISM Manufacturing New Orders Index 67.9, 60.2 previous
• US Sep Construction Spending (MoM) 0.3%, 1.0%,1.4% previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•03:30 Australia Nov RBA Interest Rate Decision
•03:30 Australia RBA Rate Statement
Fx Beat
EUR/USD: The euro edged lower against dollar on Monday as new lockdown measures in Europe kept investors cautious. As COVID-19 cases surge across Europe, nationwide lockdowns have been announced in Britain, France and Germany, while Austria, Portugal, Spain and Italy are tightening restrictions. In Europe, new COVID-19 cases have doubled in five weeks, with total infections surpassing 10 million. Market focus now shifts the U.S. elections on Tuesday. The euro last fetched $1.1638, down 0.05. Immediate resistance can be seen at 1.1666 (30 DMA), an upside break can trigger rise towards 1.1704 (Oct 30th high).On the downside, immediate support is seen at 1.1621 (Daily low), a break below could take the pair towards 1.1620 (Lower BB).
GBP/USD: Sterling fell to an almost four-week low against the dollar on Monday after England announced a new national lockdown, but hopes for a Brexit deal prevented a bigger drop for the currency. Prime Minister Boris Johnson announced over the weekend that a one-month lockdown across England would start on Thursday with Britain registering more than 20,000 new coronavirus cases a day and scientists warning the “worst case” scenario of 80,000 dead could be exceeded this winter. Sterling was 0.20% lower at $1.2919 by 2124 GMT, after earlier touching its lowest level since Oct. 07 at $1.2854.Immediate resistance can be seen at 1.2963 (38.2%fib), an upside break can trigger rise towards 1.3009 (Higher BB).On the downside, immediate support is seen at 1.2854 (23.6%fib), a break below could take the pair towards 1.2802 (Lower BB).
USD/CAD: The Canadian dollar strengthened against all the other G10 currencies on Monday as investor sentiment perked up ahead of the U.S. presidential election and oil prices rebounded.The Canadian dollar was trading 0.7% higher at 1.3230 to the greenback, which was the best performance among G10 currencies. It was the loonie's largest advance since Sept. 9, clawing back some of last week's 1.5% decline . U.S. crude oil futures settled 2.9% higher at $36.81 a barrel after data showed China's factory activity rose to its highest in nearly a decade and U.S. manufacturing activity accelerated more than expected. Immediate resistance can be seen at 1.3270 (50%fib), an upside break can trigger rise towards 1.3330 (38,2%fib).On the downside, immediate support is seen at 1.3222 (Daily low), a break below could take the pair towards 1.3200 (61.8%fib).
USD/JPY: The dollar was little changed against the Japanese yen on Monday as volatility in the market over the outcome of Tuesday’s U.S. presidential election pushed investors swiitch to greenback. The dollar has strengthened in the past week as risk sentiment soured, with investors reducing positions due to uncertainty over the result. Democratic challenger Joe Biden leads in national opinion polls, but the race looks close enough in battleground states that President Donald Trump could win the 270 Electoral College votes needed to win. Strong resistance can be seen at 104.82 (50%fib), an upside break can trigger rise towards 105.16 (61.8%fib).On the downside, immediate support is seen at 104.49 (38.2%fib), a break below could take the pair towards 104.06 (23.6%fib).
Equities Recap
European stocks started November trading on a strong footing as a rebound in factory activity around the world outweighed worries over a resurgence in COVID-19 cases that is driving major economies in the continent back into a lockdown.
UK's benchmark FTSE 100 closed up by 1.39 percent, Germany's Dax ended up by 1.97 percent, France’s CAC finished the day up by 2.11 percent.
Wall Street’s major indexes gained ground on Monday after suffering their worst week since March, as investors geared up for an event-packed week centered around the U.S. presidential election.
Dow Jones closed was last trading by 1.60 percent, S&P 500 was last up by 1.23 percent, Nasdaq was up by 0.42 % percent.
Treasuries Recap
U.S. Treasury yields mostly drifted lower on Monday as investors braced for an action-packed week headlined by Tuesday's presidential election.
The benchmark 10-year yield was last down less than a basis point at 0.8502%.
Commodities Recap
Gold prices rose on Monday as investors remained nervous ahead of this week's U.S. presidential election and as a surge in COVID-19 cases and renewed lockdowns in some countries increased uncertainty about the global economic outlook.
Spot gold rose 0.7% to $1,890.96 per ounce by 1213 GMT, while U.S. gold futures were up 0.5% to $1,889.60.
Oil prices gained nearly 3% on Monday, rebounding from several day of losses built on concerns of rising coronavirus cases, one day before the end of U.S. presidential election voting.
Brent crude gained $1.03, or 2.7%, to settle at $38.97 a barrel. U.S. West Texas Intermediate ended $1.02, or 2.9%, higher at $36.81 a barrel.
