Market Roundup
• German Oct Industrial Production (MoM) 3.2%,1.6% forecast, 1.6% previous
•French Nov Reserve Assets Total 184,544.0M, 196,617.0M previous
•Sweden Current Account (Q3) 67.4B, 63.2B previous
•UK Halifax House Price Index (YoY) 7.6%,7.5% previous
•UK Nov Halifax House Price Index (MoM) 1.2%, 0.5% forecast, 0.3% previous
•Sweden Oct Industrial New Orders (YoY) 1.3%,-0.3% previous
•Sweden Industrial Production (MoM) 1.2%,-1.4% previous
•Sweden Industrial Production (YoY) 0.2%,-2.4% previous
•EU Dec Sentix Investor Confidence -2.7, -8.3 forecast, -10.0 previous
Looking Ahead - Economic Data (GMT)
•13:00 Brazil Auto Production (MoM) 7.4% previous
•13:00 Brazil Auto Sales (MoM) 3.5% previous
•14:00 French 6-Month BTF Auction -0.646% previous
•14:00 French 3-Month BTF Auction -0.655% previous
•14:00 French 12-Month BTF Auction-0.647% previous
•15:00 US Nov CB Employment Trends Index 97.57 previous
•15:00 Canada Nov Ivey PMI 54.7 forecast, 54.5 previous
•15:00 Canada Nov Ivey PMI n.s.a 55.9 previous
•16:30 US 3-Month Bill Auction 0.085% previous
•16:30 US 6-Month Bill Auction 0.090% previous
•20:00 US Oct Consumer Credit 97.57 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
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. British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen will review the situation on Monday evening. The pound was steady overnight but started to fall in early London trading, dropping sharply not long after 0800 GMT when The Sun newspaper reported that Johnson was ready to pull out of Brexit talks “within hours” unless the European Union changes its demands. Immediate resistance can be seen at 1.3304(50%fib), an upside break can trigger rise towards 1.3405 (23.6%fib).On the downside, immediate support is seen at 1.3207 (50%fib), a break below could take the pair towards 1.3113 (61.8% fib).
USD/CHF: The dollar declined against the Swiss franc on Monday as as traders eyed more US stimulus after weak U.S. jobs data last week heightened expectations of economic aid. Friday’s jobs data showed non-farm payrolls increased by 245,000 last month, the smallest gain since May, a sign the jobs recovery slowing during the third wave of coronavirus infections. Talks aimed at delivering fresh coronavirus relief to gathered momentum in the U.S. Congress on Friday, as a bipartisan group of lawmakers worked to put the finishing touches on a $908 billion bill. Immediate resistance can be seen at 0.8939 (50%fib), an upside break can trigger rise towards 0.8963 (61.8%fib).On the downside, immediate support is seen at 0.8913(38.2% fib), a break below could take the pair towards 0.8881(23.6%fib).
USD/JPY: The dollar gained against the Japanese yen on Monday on hopes coronavirus vaccine rollout this week may fuel global recovery next year. Britain begins its vaccine programme this week and others are likely to follow soon, so governments are seeking to reassure people of vaccines’ safety and efficacy in order to get a critical mass to take them. The World Health Organization estimates a 65-70% vaccine coverage rate as necessary to reach population immunity through vaccination, though the idea of herd immunity assumes a vaccine prevents transmission, not just the disease itself. At 12:50 GMT, the dollar against the Japanese yen gained 0.03% to 104.21. 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.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading up at 0.31 percent, Germany's Dax was down by 0.33 percent, France’s CAC finished was down by 0.78 percent.
Commodities Recap
Gold prices fell on Monday on overall optimism over this week’s coronavirus vaccine rollout in Britain and as the dollar bounced off a multi-year low.
Spot gold prices were 0.3% lower at $1,832.30 per ounce by 1027 GMT, while U.S. gold futures were down 0.2% at $1,836.10.
Oil prices slipped on Monday as the positive impact from COVID-19 vaccines and an OPEC+ deal on oil production cuts was undermined by surging coronavirus cases and heightened tensions between the United States and China.
Brent crude fell 76 cents, or 1.5%, to $48.49 a barrel by 0911 GMT. U.S. crude was down 82 cents, or 1.8%, at $45.44.
