Market Roundup
•Brazil Auto Production (MoM) 0.7% ,7.4% previous
•Brazil Auto Sales (MoM) 4.6%, 3.5% previous
•French 6-Month BTF Auction -0.676%, -0.646% previous
•French 3-Month BTF Auction -0.706%,-0.655% previous
•French 12-Month BTF Auction -0.682%,-0.647% previous
•US Nov CB Employment Trends Index 98.81, 97.57 previous
•Canada Nov Ivey PMI 52.7, 54.7 forecast, 54.5 previous
•Canada Nov Ivey PMI n.s.a 52.4, 55.9 previous
•US 3-Month Bill Auction 0.080%, 0.085% previous
•US 6-Month Bill Auction 0.090%%, 0.090% previous
Looking Ahead - Economic Data (GMT)
•23:30 Japan Dec Reuters Tankan Index -13 previous
•23:30 Japan Overtime Pay (YoY) -12.30% previous
•23:30 Japan Oct Overall wage income of employees -0.9% previous
•23:30 Japan Oct Household Spending (YoY) 2.5% forecast, -10.2% previous
•23:30 Japan Oct Household Spending (YoY) 1.0% forecast,3.8% previous
•23:30 Japan Average Cash Earnings (YoY) -0.9% previous
•23:30 Japan GDP External Demand (QoQ) (Q3) 2.9% forecast, -3.0% previous
•23:30 Japan GDP (QoQ) (Q3) 5.0%,-7.9% previous
•23:30 Japan Oct Current Account n.s.a. 2.126T ,1.660T previous
•23:30 Japan GDP (YoY) (Q3) 21.5% forecast, -28.1%-28.1% previous
•00:30 Australia ANZ Business Confidence -6.9 previous
•00:30 Australia House Price Index (QoQ) (Q3) -1.0% forecast, -1.8% previous
•00:30 Australia NAB Business Confidence 5 previous
•00:30 Australia Building Approvals (MoM) 3.8% previous
Looking Ahead - Economic events and other releases -6.9 previous
•No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Monday as growing risks of a no-deal Brexit weighed on euro. A Brexit deal hung in the balance on Monday as Britain and the EU made a last-ditch attempt to bridge significant differences to strike a trade deal that would avoid a disorderly exit in just 24 days time. This week’s ECB meeting is also putting downward pressure on euro, with policymakers expected to announce further unprecedented stimulus to help prop up an economy battered by the pandemic. Immediate resistance can be seen at 1.2110 (38.2%fib), an upside break can trigger rise towards 1.2153 (23.6%fib).On the downside, immediate support is seen at 1.2078 (50% fib), a break below could take the pair towards 1.2040 (61.8% fib).
GBP/USD: The pound declined against dollar on Monday as investors became more fearful about the chance of a Britain and the European Union failing to agree on a Brexit deal as last-ditch talks resumed in Brussels. The EU’s chief Brexit negotiator, Michel Barnier, was rather downbeat about the chance of a deal, a senior EU diplomat said. Traders and analysts still believe that a Brexit deal is more likely than not, but options markets indicate that they expect further price swings as the Dec. 31 deadline approaches - when Britain leaves the EU customs union and single market. Immediate resistance can be seen at 1.3404(23.6%fib), an upside break can trigger rise towards 1.3505 (Dec 3rd high).On the downside, immediate support is seen at 1.3305 (38.2%fib), a break below could take the pair towards 1.3215 (50% fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as rising tensions between the United States and China weighed on investor sentiment, with the currency pulling back from a two-and-a-half-year high on Friday. Oil prices were pressured by heightened U.S.-China tensions and surging coronavirus cases. U.S. crude prices were down 1.1% at $45.75 a barrel. The Canadian dollar was trading 0.2% lower at 1.2808 to the greenback. On Friday, it touched its strongest intraday level since May 2018 at 1.2768 after data showed that Canada added more jobs than expected in November. Immediate resistance can be seen at 1.2834(38.2%fib), an upside break can trigger rise towards 1.2855 (5DMA).On the downside, immediate support is seen at 1.2760 (23.6%fib), a break below could take the pair towards 1.2700 (Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Monday as investors looked past the surge in coronavirus cases and ahead to a possible new COVID-19 U.S. stimulus deal and vaccines to fight the pandemic. White House economic adviser Larry Kudlow on Monday said talks on another round of stimulus funding to deal with the deadly coronavirus pandemic are moving in the right direction, and President Donald Trump’s administration and Congress are getting closer to agreement.The United States has experienced increasing numbers of COVID-19 cases, with a death toll of about 283,000. The dollar fell 0.2% against the Japanese currency to 104.01 yen. Strong resistance can be seen at 104.34 (50%fib), an upside break can trigger rise towards 104.68 (61.8% fib).On the downside, immediate support is seen at 103.99 (38.2%fib), a break below could take the pair towards 103.59 (23.6%fib).
Equities Recap
European shares slipped on Monday as rising tension between the United States and China sapped some appetite for risky assets, while Britain-based exporters outperformed as uncertainty over a Brexit trade deal battered the pound.
UK's benchmark FTSE 100 closed down by 0.08 percent, Germany's Dax ended down by 0.21 percent, France’s CAC finished the day down by 0.64 percent.
The Nasdaq closed at a record high on Monday after investors moved into mega-cap growth stocks even as a new round of COVID-19 restrictions underscored the continuing economic impact of the pandemic on the United States.
Dow Jones closed down by 0.48% percent, S&P 500 closed down by 0.19 % percent, Nasdaq settled up by 0.45% percent.
Treasuries Recap
.U.S. Treasury yields fell on Monday as rising coronavirus caseloads and new public health restrictions drove investors to buy the safe securities.
The benchmark 10-year yield was down 4.3 basis points at 0.9261% in afternoon trading, flattening a key part of the yield curve.
Commodities Recap
Gold gained more than 1% to a two-week high on Monday, bolstered by expectations of fresh fiscal stimulus in the United States.
Spot gold prices were 1.3% higher at $1,860.49 per ounce by 2:04 p.m. EST (1904 GMT), after rising to their highest level since Nov. 23 at $1,868.25 earlier. U.S. gold futures settled up 1.4% at $1,866.
