Market Roundup
•Italian Nov Trade Balance Non-EU 6.68B, 7.09B previous
•Greek Oct Current Account (YoY) -0.767B, -0.499B previous
•UK Dec CBI Distributive Trades Survey -3, -35 frecast, -25 previous
Looking Ahead - Economic Data (GMT)
•13:30 Canada New Nov Housing Price Index (MoM) 0.9%,0.8% previous
•13:30 US Nov Chicago Fed National Activity 0.83 previous
•14:00 French 6-Month BTF Auction -0.719% previous
•14:00 French 3-Month BTF Auction -0.743% previous
•14:00 French 12-Month BTF Auction -0.692% previous
•15:00 EU Dec Consumer Confidence -16.8 forecast, -17.6 previous
•16:30 US 3-Month Bill Auction 0.075% previous
•16:30 US 6-Month Bill Auction 0.085% previous
•18:00 US 20-Year Bond Auction 1.422% previous
Fxbeat
EUR/USD: The euro declined against dollar on Monday as a new fast-spreading coronavirus strain that shut down in much of the United Kingdom weighed on euro.Britain was shut off from much of Europe after its closest allies cut transport ties, following Prime Minister Boris Johnson’s warning that a highly infectious new strain of the virus was a danger to the country. 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 and euro 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/CHF: The dollar rose higher against the Swiss franc on Monday as investors sought refuge in the dollar, after a fast-spreading new coronavirus strain shut down much of the United Kingdom and disrupted international freight amid Brexit talks uncertainties. Britain insisted on Sunday that the EU should shift position to open the way to a post-Brexit trade deal, but there was so far no sign a breakthrough. The dollar’s rebound comes 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 0.8878(50%fib), an upside break can trigger rise towards 0.8901 (61.8% fib).On the downside, immediate support is seen at 0.8853 (38.2% fib), a break below could take the pair towards 0.8825 (23.6%fib ).
USD/JPY: The dollar rose higher 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
A more than 5% drop in travel stocks led a slump in European shares on Monday, as the rapid spread of a new strain of the coronavirus forced more stringent curbs in England and a travel ban from many countries.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 2.58 percent, Germany's Dax was down by 3.08 percent, France’s CAC was last down by 3.07 percent.
Commodities Recap
Gold climbed to a six-week high on Monday, driven by news that U.S. congressional leaders reached agreement on a COVID-19 aid package, while lockdowns in the United Kingdom soured appetite for riskier assets and added to the metal’s support.
Spot gold rose 0.9% to $1,896.56 per ounce by 0745 GMT, having earlier hit its highest since Nov. 9 at $1,906.46. U.S. gold futures gained 0.8% to $1,904.20.
Oil prices tumbled by $3 on Monday, their biggest daily fall since June, 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 was down $3.00, or 5.7%, to $49.26 a barrel by 1028 GMT, and U.S. West Texas Intermediate (WTI) crude was down $2.92, or 6%, to $46.18 a barrel.
