Market Roundup
• French 12-Month BTF Auction -0.719%, -0.676% previous
• French 3-Month BTF Auction -0.743%, -0.706% previous
• French 6-Month BTF Auction -0.692%, -0.682% previous
• US 3-Month Bill Auction 0.075%, -0.682% previous
• US 3-Month Bill Auction,0.085%,,0.080% previous
Looking Ahead - Economic Data (GMT)
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Looking Ahead - Economic events and other releases (GMT)
•Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro strengthened against dollar on Monday after Britain and the European Union agreed to continue talks on post-Brexit trade beyond Sunday’s deadline. The single currency has been charging hard against the U.S. dollar, which has entered a cyclical downtrend as the prospect of a vaccine-driven global economic recovery lessens the need for greenback. The euro was up 0.2% on Monday at $1.2146 and within striking distance of its recent 31-month top of $1.2177.Immediate resistance can be seen at 1.2157 (23.6% fib), an upside break can trigger rise towards 1.2200 (Psychological level).On the downside, immediate support is seen at 1.2120 (5EMA), a break below could take the pair towards 1.2100 (38.2% fib).
GBP/USD: Sterling held on to gains made against the dollar on Monday after Britain and the European Union extended discussions on a post-Brexit trade deal beyond the previous day’s deadline. The EU’s Brexit negotiator, Michel Barnier, said a new pact with Britain was still possible as negotiators sought to break deadlocks on access to fishing waters for EU vessels and corporate economic fair-play rules. By 18:00 GMT, the pound traded 0.9% higher to the dollar at $1.3318, having risen as much as 1.6% to $1.3444 earlier. Immediate resistance can be seen at 1.3441(Daily high), an upside break can trigger rise towards 1.3514 (23.6%fib).On the downside, immediate support is seen at 1.3368 (38.2%fib), a break below could take the pair towards 1.3245 (50%fib).
USD/CAD: The Canadian dollar was little changed to slightly higher against the U.S. currency in thin trading on Monday, as optimism about a Brexit trade deal and progress in the global rollout of COVID-19 vaccines was tempered by stricter lockdowns in Europe. Germany, Britain, and the Netherlands on Monday announced tighter restrictions going into the holiday season. So far this month, the Canadian currency has gained about 2% against its U.S. counterpart. The Canadian dollar was flat to modestly higher on the day at C$1.2762 per U.S. dollar. Since late October, the Canadian dollar has risen 5%. Immediate resistance can be seen at 1.2778(38.2%fib), an upside break can trigger rise towards 1.2825 (50%fib).On the downside, immediate support is seen at 1.2721 (23.6%fib), a break below could take the pair towards 1.2700 (Psychological level).
USD/JPY: The dollar gained against the Japanese yen on Monday as traders consolidating positions amid competing forces that pull the currency in different directions, the surge in virus cases, on the one hand, and positive vaccine news, on the other. The greenback last traded to 104.04, up 0.05%, as an intensive care unit nurse became the first person in the United States to receive the vaccine developed by Pfizer Inc and German partner BioNTech SE on Monday. Strong resistance can be seen at 104.08 (38.2%fib), an upside break can trigger rise towards 104.33 (30EMA).On the downside, immediate support is seen at 103.55(38.2%fib), a break below could take the pair towards 103.00 (Psychological level).
Equities Recap
European shares rose on Monday as a decision to extend trade talks between Britain and the European Union kept hopes of an eventual deal alive, but gains in London’s blue-chips lagged a higher pound and a near 6% drop in AstraZeneca weighed.
UK's benchmark FTSE 100 closed down by 0.24 percent, Germany's Dax ended up by 0.83 percent, France’s CAC finished the day up by 0.37 percent.
Wall Street’s main indexes rose on Monday as travel stocks surged on the launch of a nationwide COVID-19 vaccine campaign, while Alexion Pharmaceuticals jumped on a $39 billion buyout offer from AstraZeneca in one of the year’s biggest deals.
Dow Jones closed down by 2.44%percent, S&P 500 closed down by 1.79% percent, Nasdaq settled down by 1.03 % percent.
Treasuries Recap
The Treasury yield curve steepened modestly on Monday, ahead of this week’s Federal Reserve meeting, and as select hospitals were set to administer the first COVID-19 vaccines.
The benchmark 10-year yield was last at 0.898%, up 0.7 basis point from Friday’s close, well within last week’s trading range. The 30-year yield was up 1.2 basis points to 1.637%, also within its recent range.The two-year yield was last at 0.117%, down 0.4 basis point from Friday.
Commodities Recap
Oil prices were little changed in choppy trade on Monday as persistent oversupply in the market largely offset hopes that a rollout of coronavirus vaccines will lift global fuel demand.
Brent crude futures for February ended the session 32 cents, or 0.6%, higher at $50.29 a barrel, while U.S. West Texas Intermediate crude futures for January settled up 42 cents, or 0.9%, at $46.99 a barrel.
Gold prices slid on Monday as the rollout of a COVID-19 vaccine in the United States drove optimism in wider financial markets with investors banking on a resultant economic recovery.
Spot gold was 0.6% lower at $1,827.55 per ounce by 1:58 p.m. EST (1858 GMT), having earlier fallen as much as 1% to $1,819.35.U.S. gold futures settled down 0.6% to $1,832.10.
