Market Roundup
•Canada New Nov Housing Price Index (MoM) 0.6%,0.9%,0.8% previous
•US Nov Chicago Fed National Activity 0.27, 0.83 previous
•EU Dec Consumer Confidence -13.9, -16.8 forecast, -17.6 previous
•US 3-Month Bill Auction 0.000%, 0.075% previous
•US 6-Month Bill Auction0.000%, 0.085% previous
Looking Ahead - Economic Data (GMT)
•00:30 Australia Retail Sales (MoM) 1.4% previous
Looking Ahead - Economic events and other releases (GMT)
• No Significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Monday on fears about a fast-spreading new coronavirus strain that was discovered in the UK, prompting investors to seek safety in the greenback. The pandemic stress in Europe overshadowed a weekend deal among U.S. congressional leaders for a $900 billion coronavirus aid package. The dollar index gained 0.2% to 90.43, after it sank to two-and-a-half-year lows last week, driven by optimism that vaccines would help revive global growth. Immediate resistance can be seen at 1.2198 (Higher BB), an upside break can trigger rise towards 1.2274 (23.6%fib).On the downside, immediate support is seen at 1.2150 (38.2%fib), a break below could take the pair towards 1.2100(Psychological level).
GBP/USD: Sterling fell against the dollar on Monday as more countries cut transport ties with Britain, where a fast-spreading new strain of the coronavirus had broken out.Hong Kong and India joined a growing list of nations, including France, Germany, Ireland and Canada, that have halted travel and suspended flights to ward off the new strain. The travel chaos comes just as Britain was bracing for disruption if UK-EU trade talks collapse without a deal, with negotiations continuing just days before a transition period expires at the end of the year. Sterling hit 10-day lows against the dollar and euro, reversing recent gains. Immediate resistance can be seen at 1.3342 (23.6%fib), an upside break can trigger rise towards 1.3378 (21DMA).On the downside, immediate support is seen at 1.3247 (38.2%fib), a break below could take the pair towards 1.3222 (50%fib).
USD/CAD: The Canadian dollar weakened to a near three-week low against its U.S. counterpart on Monday before clawing back much of its decline, as the spread of a new coronavirus strain in Britain clipped investor risk appetite. The strain, which is said to be up to 70% more transmissible than the original, forced many countries, including Canada, to shut off travel ties with the UK. U.S. crude oil futures settled 2.8% lower at $47.74 a barrel, while the Canadian dollar was trading down 0.3% at1.2825 to the greenback, or 77.97 U.S. cents. It touched its weakest intraday level since Dec. 2 at 1.2955. Immediate resistance can be seen at 1.2846 (61.8), an upside break can trigger rise towards 1.2500(Higher BB).On the downside, immediate support is seen at 1.2797 (50DMA), a break below could take the pair towards 1.2749 (9 DMA).
USD/JPY: The dollar gained against the Japanese yen on Monday as dollar was boosted by news that U.S. congressional leaders reached agreement on a COVID-19 aid package. The Fed last week vowed to keep funnelling cash into financial markets and keep rates low until a U.S. economic recovery is secure. The dollar was 0.27 percent higher versus the Japanese yen at 103.51. Strong resistance can be seen at 103.67 (50%fib), an upside break can trigger rise towards 103.86 (61.8%fib).On the downside, immediate support is seen at 103.40 (5DMA), a break below could take the pair towards 103.26 (23.6%fib).
Equities Recap
European shares fell on Monday in their worst session in almost two months as the rapid spread of a new strain of the coronavirus forced more stringent curbs in Britain and travel bans from several countries.
UK's benchmark FTSE 100 closed down by 1.73 percent, Germany's Dax ended down by 2.82 percent, France’s CAC finished the day down by 2.43 percent.
Wall Street’s main indexes fell on Monday, as a more-virulent strain of the coronavirus in Britain sparked fears of fresh disruptions and weighed on investors’ expectations of a vaccine-led economic rebound.
Dow Jones closed up by 0.12% percent, S&P 500 closed down by 0.40 % percent, Nasdaq settled down by 0.10% percent.
Treasuries Recap
Benchmark Treasury yields were little changed on Monday, erasing an earlier dip, as investors shrugged off concerns about a new strain of COVID-19 in the United Kingdom.
Benchmark 10-year yields were little changed on the day at 0.936%, after earlier falling to 0.882%, the lowest since Dec. 11. The yields have ranged from 0.798% to 0.986% for the past 1-1/2 months.
Commodities Recap
Gold edged down on Monday as fears of a new coronavirus strain roiled markets and investors opted for the dollar, while the metal gained some support from a U.S. stimulus package.
Spot gold fell 0.2% to $1,877.83 per ounce by 1:44 p.m. EST (1844 GMT), having earlier hit its highest since Nov. 9 at $1,906.46. U.S. gold futures settled down 0.3% at $1,882.80.
Oil prices tumbled nearly 3% on Monday as a fast-spreading new coronavirus strain that has shut down much of Britain and led to tighter restrictions in Europe sparked worries about a slower recovery in fuel demand.
Brent crude settled down $1.35, or 2.6%, at $50.91 a barrel, while U.S. West Texas Intermediate (WTI) crude for delivery in January ended the session $1.36, or 2.8%, lower at $47.74 ahead of expiry.
