Market Roundup
•German Nov WPI (MoM) 0.1%,0.2% forecast, -0.2% previous
•German Nov) WPI (YoY) -1.7% , -1.9% previous
•EU Industrial Oct Production (YoY) -3.8%, -4.4% forecast, -6.8% previous
•EU Industrial Production (MoM) 2.1%,2.0% forecast, -0.4% previous
Looking Ahead - Economic Data (GMT)
•14:00 French 12-Month BTF Auction -0.676% previous
•14:00 French 3-Month BTF Auction-0.706% previous
•14:00 French 6-Month BTF Auction -0.682% previous
•16:30 US 3-Month Bill Auction -0.682% previous
•16:30 US 3-Month Bill Auction 0.080% previous
Looking Ahead - Economic events and other releases (GMT)
•13:30 ECB's Schnabel Speaks
Fxbeat
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, whichhas 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 $1.2135 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 touched $1.34 against the dollar on Monday, extending gains of more than 1%, after Britain and the European Union extended discussions on a post-Brexit trade deal beyond Sunday’s deadline.British Prime Minister Boris Johnson and Ursula von der Leyen, the president of the European Commission, told negotiators to continue talks beyond Sunday to resolve an impasse on arrangements that would guarantee British access to the EU’s single market. By 1230 GMT, the pound traded 1.4% higher to the dollar at $1.3405, having hit the day’s high of $1.3411 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/CHF: The dollar declined against the Swiss franc on Monday as as the dollar weakened broadly ahead of a U.S. Federal Reserve meeting this week. Investors now await the U.S Federal Reserve’s two-day policy meeting starting on Tuesday with bets for increased purchases of longer-dated Treasuries to contain a rise in yields.The dollar was down around 0.2% against a basket of currencies at 90.621 at 0804 GMT, staying within December’s ranges but not far from its lowest since 2018. Immediate resistance can be seen at 0.9858 (Daily high), an upside break can trigger rise towards 0.9904 (61.8%fib).On the downside, immediate support is seen at 0. 8875(38.2%fib), a break below could take the pair towards 0. 8851(38.2%fib).
USD/JPY: The dollar declined against the Japanese yen on Monday as uncertainty about U.S. fiscal and monetary stimulus increased demand for yen. Traders are waiting to see if the U.S. Federal Reserve will this week refine its forward guidance on policy at its meeting on Dec. 15-16. The market is also watching for a deal on fiscal stimulus by U.S. lawmakers following months of negotiations on a new coronavirus aid bill. Strong resistance can be seen at 104.08 (Daily high), an upside break can trigger rise towards 104.27 (38.2%fib).On the downside, immediate support is seen at 107.71 (23.6%fib), a break below could take the pair towards 103.21 (9DMA).
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 were limited by a higher pound and a 6.2% drop in AstraZeneca.
At (GMT 12:30),UK's benchmark FTSE 100 was last trading up at 0.31 percent, Germany's Dax was up by 1.27 percent, France’s CAC finished was up by 1.04 percent.
Commodities Recap
Gold prices dipped on Monday as COVID-19 vaccine rollouts lifted riskier assets, overshadowing hopes for further U.S. fiscal and monetary stimulus.
Spot gold fell 0.4% to $1,831.75 per ounce by 0746 GMT, while U.S. gold futures eased 0.4% to $1,836.80.
Oil prices rose on Monday, pushing Brent back above $50 a barrel, buoyed by hopes that a rollout of coronavirus vaccines will lift global fuel demand while a tanker explosion in Saudi Arabia jangled nerves in the market.
Brent crude futures for February rose 67 cents, or 1.3%, to $50.64 a barrel by 0730 GMT, while U.S. West Texas Intermediate crude futures for January were up 62 cents, or 1.3%, at $47.19 a barrel.
