Market Roundup
•French 12-Month BTF Auction 2.344% ,2.145% previous
•French 3-Month BTF Auction 1.301% ,1.330% previous
•French 6-Month BTF Auction 1.726% ,1.680% previous
•US Oct CB Employment Trends Index 119.57,120.17 previous
•US 3-Month Bill Auction 4.120%,4.070% previous
•US 6-Month Bill Auction 4.490%, 4.440% previous
•US Sep Consumer Credit 24.98B, 30.00B forecast , 32.24B previous
Looking Ahead Economic Data(GMT)
•05:00 Japan Sep Leading Index (MoM) 2.4% previous
•05:00 Japan Sep Coincident Indicator (MoM) 1.7% previous
•05:00 Japan Leading Index 97.5 forecast , 101.3 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened against the safe-haven dollar on Monday, supported by a risk-on sentiment across markets as investors digested positive euro zone data and looked to cash in on the strength of the U.S. currency.A survey showed on Monday that investor morale in the euro zone improved in November, the first time it rose in three months, reflecting hopes that recent warmer temperatures and falling energy prices will prevent gas rationing on the continent this winter. Investors were also cheered by a readout on Monday showing that German industrial production grew in September, beating analyst expectations. The euro was up 0.69% to $1.0029.Immediate resistance can be seen at 1.0039(38.2%fib), an upside break can trigger rise towards 1.0091 (Higher BB).On the downside, immediate support is seen at 0.9935 (11DMA), a break below could take the pair towards 0.9841 (23.6%fib).
GBP/USD: Sterling rose on Monday, largely boosted by a softer dollar, which pushed the pound back up to levels seen before the Bank of England (BoE) delivered its biggest interest rate hike in three decades last week . The pound is trading roughly where it was in the run-up to Thursday’s decision by the Bank of England to raise its benchmark interest rate by 75 bps as it battles to bring down double-digit inflation. But analysts remain gloomy about the prospects for the currency given the economic outlook. Immediate resistance can be seen at 1.1653 (Higher BB), an upside break can trigger rise towards 1.1783(Higher BB).On the downside, immediate support is seen at 1.1453(23.6%fib), a break below could take the pair towards 1.1351(21DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday as oil prices fell and investors awaited some key U.S. drivers over the coming days, with the currency holding near its strongest level in nearly seven weeks. As the central bank considers raising interest rates at a slower pace, it is focusing on inflation measures that are more timely than typically observed, which could help it avoid tightening beyond the level needed to subdue price pressures.The price of oil, one of Canada’s major exports, fell on mixed signals over China potentially relaxing its strict COVID-19 restrictions. U.S. crude oil futures settled 0.9% lower at $91.79 a barrel. Immediate resistance can be seen at 1.3587 (5DMA), an upside break can trigger rise towards 1.3643(23.6%fib).On the downside, immediate support is seen at 1.3370 (38.2%fib), a break below could take the pair towards 1.3396(Lower BB).
USD/JPY: The dollar declined against the yen on Monday as investors awaited consumer inflation data this week. The biggest macroeconomic risk event this week will be the October consumer price index (CPI), which could be instrumental in setting investor expectations for the likely course of Federal Reserve monetary policy. Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting, sounding less hawkish than Chair Jerome Powell. There are at least seven Fed officials scheduled to speak this week, which will help refine the rate outlook with markets now narrowly leaning toward a half-point rate hike next month to 4.25-4.5%. Strong resistance can be seen at 147.26 (5DMA), an upside break can trigger rise towards 148.23(23.6%fib).On the downside, immediate support is seen at 146.00 (Psychological level), a break below could take the pair towards 145.44(38.2%fib).
Equities Recap
European shares closed on Monday at a more than seven-week high as a jump in travel and technology stocks helped outweigh a drag from China-exposed luxury giants.
The UK's benchmark FTSE 100 closed up by 1.31 percent, Germany's Dax ended up by 0.96 percent, and France’s CAC finished the up by 0.85 percent.
Wall Street ended sharply higher Monday as investors focused on Tuesday's midterm elections that will determine control of Congress, while shares of Meta Platforms jumped on a report of job cuts at the Facebook parent.
Dow Jones closed up by 0.47 percent, S&P 500 closed up 0.60 percent, Nasdaq closed up by 1.18 percent.
Treasuries Recap
U.S. Treasury yields rose in choppy trading on Monday after a week of high volatility, as bond investors turned their focus to the U.S. midterm elections on Tuesday that will determine control of Congress.
U.S. two-year yields, which are sensitive to rate expectations, rose 7 basis points to 4.216%
Commodities Recap
Gold prices steadied on Monday near a three-week peak hit in the previous session, buoyed by a weaker dollar, while investors looked forward to U.S. inflation data later this week that could influence the size of Federal Reserve rate-hike.
Spot gold was little changed at $1,676.24 per ounce by 1:50 p.m. ET (1850 GMT), after rising more than 3% to its highest since Oct. 13 at $1,681.69 on Friday.U.S. gold futuressettled up 0.2% to $1,680.5.
Oil prices fell on Monday, paring gains after rising to more than two-month highs, on mixed signals over China, the world's top crude importer, potentially relaxing its strict COVID-19 restrictions.
Brent crude futures fell 65 cents to settle at $97.92 a barrel. Earlier in the session, they rose to a session high of $99.56 a barrel, the highest since Aug. 31.
U.S. West Texas Intermediate crude dropped 82 cents to settle at $91.79. It earlier rose 74 cents to a session high of $93.74 a barrel, the highest since Aug. 30.
