Market Roundup
•EU Sep Current Account n.s.a 3.8B ,-20.2B previous
•EU Sep Current Account -8.1B ,-20.3B forecast,-26.3B previous
•UK Oct Public Sector Net Cash Requirement 9.732B ,10.136B previous
•UK Oct Public Sector Net Borrowing 12.73B ,19.10B forecast, 19.25B previous
•Belgium Nov Consumer Confidence -22 ,-27 previous
Looking Ahead Economic Data(GMT)
•13:30 Canada Manufacturing Sales (MoM) 0.2% forecast, 0.0% previous
•13:30 Canada Wholesale Sales (MoM) 0.4% forecast, 0.1% previous
•13:30 Canada New Housing Price Index (MoM) 0.2% forecast, -0.1% previous
•13:30 Canada Sep core Retail Sales (MoM) -0.6% forecast, 0.7% previous
•13:55 US Redbook (YoY) 6.8% previous
•15:00 US Nov Richmond Manufacturing Index -9 forecast, -10 previous
•15:00 US Nov Richmond Services Index -8 previous
•15:00 US Nov Richmond Manufacturing Shipments -3 previous
•15:00 EU Nov Consumer Confidence -26.0 forecast, -27.6 previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 US FOMC Member Mester Speaks
•17:00 Canada BoC Senior Deputy Governor Rogers Speaks
•18:00 EU German Buba President Nagel Speaks
•19:15 US FOMC Member George Speaks
•19:45 US FOMC Member Bullard Speaks
Fxbeat
EUR/USD: The euro strengthened on Tuesday as the dollar eased, as focus turned to minutes from the U.S. Federal Reserve’s latest meeting for clues on future rate hikes. The Fed’s November meeting minutes are due on Wednesday, with most traders betting on a 50-basis point hike in the December meeting. San Francisco Federal Reserve President Mary Daly said on Monday the real-world impact of the U.S. central bank’s interest rate hikes is likely greater than what its short-term rate target implies. Meanwhile, Cleveland Fed President Loretta Mester said the central bank can downshift to smaller interest rate hike increments from next month as it fine-tunes its policy actions to help bring down high inflation.Immediate resistance can be seen at 1.0307 (38.2%fib), an upside break can trigger rise towards 1.0395(Nov 18th high).On the downside, immediate support is seen at 1.0240(Daily low), a break below could take the pair towards 1.0189(38.2%fib).
GBP/USD: The pound rose on Tuesday as the dollar retreated following three days of gains. The greenback typically the driver of global currency markets rose sharply on Monday as a jump in COVID-19 cases in China sparked growth fears and sent investors towards the safe-haven currency, causing the pound to drop 0.59%.Still, the U.S. currency was down against its major peers on Tuesday, with sterling rising 0.33% to $1.185. The pound has rallied sharply in recent weeks after touching a record low of $1.0327 in September, when the government unveiled plans for large unfunded tax cuts. Immediate resistance can be seen at 1.1898 ( 23.6%fib), an upside break can trigger rise towards 1.2037 (Higher BBb).On the downside, immediate support is seen at 1.1782 (11DMA), a break below could take the pair towards 1.1615 (38.2%fib).
USD/CHF: The dollar retreated against the Swiss franc on Tuesday as investors awaited cues on the U.S. Federal Reserve’s monetary policy path. The Federal Reserve will release the mintues from its most recent meeting on Wednesday, and investors will scour that for any insight into policymakers' views on the outlook for inflation and economic growth. Meanwhile, Cleveland Fed President Loretta Mester said on Monday the Federal Reserve can downshift to smaller interest rate hike increments from next month. Immediate resistance can be seen at 0.9561 (11DMA), an upside break can trigger rise towards 0.9618 (38.2%fib).On the downside, immediate support is seen at 0.9491(38.2% fib), a break below could take the pair towards 0.9429(Nov 17th low).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as greenback retreated following an overnight rally that saw investors flocking to the safe-haven currency on worries over China's COVID flare ups. The major factor driving dollar moves in recent months has been market expectations of how aggressively the Federal Reserve will raise rates. Cleveland Fed President Loretta Mester said the central bank can downshift to smaller interest rate hike increments from next month, and San Francisco Fed President Mary Daly said the real-world impact of interest rate hikes is likely greater than its short-term rate target implies. Strong resistance can be seen at 142.22 (50% fib), an upside break can trigger rise towards 142.96 (14DMA).On the downside, immediate support is seen at 140.40 (38.2%fib), a break below could take the pair towards 138.96 (Nov 17th low).
Equities Recap
European shares rose on Tuesday, supported by a recovery in oil stocks after a rout in the previous session as investors weighed mixed signals from central bank policymakers on the path of interest rate hikes.
At (GMT 11:44 ),UK's benchmark FTSE 100 was last trading up at 0.60 percent, Germany's Dax was up by 0.02 percent, France’s CAC finished was down by 0. 15 percent.
Commodities Recap
Gold prices snapped a four-session slump to rise on Tuesday, propped up by a retreat in the dollar while investors awaited cues on the U.S. Federal Reserve’s monetary policy path.
Spot gold was up 0.5% at $1,746.52 per ounce, as of 1001 GMT. U.S. gold futures rose 0.5% to $1,748.90.
Oil rose on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market, outweighing global recession worries and concern about China's rising COVID-19 case numbers.
Brent crude rose 37 cents, or 0.4%, to $87.82 by 0915 GMT. U.S. West Texas Intermediate (WTI) crude was up 46 cents, or 0.6%, at $80.50.
