Market Roundup
• Chinese exports fall, highlight trade war damage
• Fed, ECB meet later this week
• US Nov CB Employment Trends Index 110.18, 109.96 previous
• US 3-Month Bill Auction 1.520%,1.560% previous
• US 6-Month Bill Auction 1.520%,1.565% previous
• US 3-Year Note Auction 1.632%,1.630% previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan M2 Money Stock (YoY) 2.5% previous
• 23:50 Japan Nov M3 Money Supply
• 00:30 Australia House Price Index (QoQ) (Q3) 0.5%, -0.7% previous
• 00:30 Australia Nov NAB Business Confidence 2 previous
• 00:30 Australia Nov NAB Business Survey
• 01:00 China Nov CPI (MoM) 0.1% forecast,0.9 previous
• 01:00 China Nov CPI (MoM) 4.5%, 3.8% previous
• 01:00 Australia Nov PPI (YoY) -1.5%, -1.6% previous
• 06:00 Japan Machine Tool Orders (YoY) -37.4% previous
Looking Ahead - Events, Other Releases (GMT)
• 02:45 Australia RBA Assist Gov Bullock Speaks
Currency Summaries
EUR/USD: The euro declined against the dollar on Monday, as dollar gained on back of last week’s stronger-than-expected jobs data, although worries about U.S./China trade talks kept gains in check. The dollar stood its ground in the wake of Friday’s jobs data. Attention shifted to U.S. Federal Reserve and European Central Bank policy meetings this week, while a deadline looms for the next wave of U.S. tariffs on Chinese goods to kick in. Immediate resistance can be seen at 1.1115 (Dec 4th high), an upside break can trigger rise towards 1.1156 (200 DMA).On the downside, immediate support is seen at 1.1041 (50 DMA), a break below could take the pair towards 1.1000 (Psychological Level).
GBP/USD: Sterling strengthened against greenback on Monday, as sterling was boosted by opinion polls that point to the ruling Conservative Party winning Britain’s general election on Thursday. The sterling earlier hit a seven-month high against the dollar and a 2-1/2 year peak versus the euro after British Prime Minister Boris Johnson’s Conservatives extended their lead over Jeremy Corbyn’s main opposition Labour Party The later poll, which showed their lead declining to six percentage points, put some pressure on sterling, which was last up 0.2% at $1.3146. It had earlier hit $1.3280. Immediate resistance can be seen at 1.3180 (Higher BB), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3105 (5 DMA), a break below could take the pair towards 1.3007 (11 DMA).
USD/CAD: The Canadian dollar gained modestly against the greenback on Monday, but held on to much of the losses sustained on Friday after data showed a slump in domestic jobs, suggesting that the economy was not as resilient as the Bank of Canada had hoped.The Canadian job market lost 71,200 net positions in November while the unemployment rate rose to 5.9%, the highest in more than a year, data from Statistics Canada showed. Analysts had forecast a gain of 10,000 jobs. The Canadian dollar tumbled to 1.3269 to the U.S. dollar , after the jobs report.It retraced a small portion of these losses to trade at $1.3251 . Immediate resistance can be seen at 1.3262 (11 DMA), an upside break can trigger rise towards 1.3352 (Higher BB).On the downside, immediate support is seen at 1.3159 (Lower BB), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Monday, as investors awaited cues from the U.S. Federal Reserve on its monetary policy outlook. The U.S. Fed will meet on Dec.10-12 for an interest rate decision. Last week's booming jobs report was likely to give the central bank all it needs to stick to its plan not to cut rates further in the near future.. Strong resistance can be seen at 108.85 (11 DMA), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 108.43 (Daily low), a break below could take the pair towards 107.77 (100 DMA).
Equities Recap
European stocks slipped on Monday, dragged down by a slump in shares of Tullow Oil after its chief executive stepped down and the oil and gas explorer scrapped its dividend, while weak data out of China also weighed on sentiment.
The UK's benchmark FTSE 100 was last trade date down by 0.08 percent, Germany's Dax ended down by 0.46 percent, and France’s CAC finished the down by 1.59 percent.
The S&P 500 and Nasdaq indexes edged higher on Monday, with investors keeping a close watch on headlines around U.S.-China trade as planned tariffs on Chinese imports kick in on Dec. 15. report that the United States and China were moving closer to signing a “phase one” trade deal.
Dow Jones closed down at 0.25 percent, S&P 500 ended down 0.18 percent, Nasdaq finished the day down by 0.24 percent.
Treasuries Recap
U.S. Treasury yields rose on Wednesday on a more positive outlook for a trade deal with China and showing the market zeroed in on slight changes in comments from U.S. President Donald Trump.
The benchmark 10-year yield was up 5.8 basis points to 1.768% in morning trade, part of a broader enthusiasm for risk globally.
Commodities Recap
Gold inched up on Monday as investors awaited cues from the U.S. Federal Reserve on its monetarypolicy outlook, while trying to size up the chances of a new round of U.S. tariffs on Chinese goods.
Spot gold rose 0.2% to $1,462.10 per ounce by 0740 GMT. U.S. gold futures rose 0.1% to $1,466.50.
Oil prices fell on Monday after data showed Chinese exports declined for a fourth straight month, sending jitters through a market already concerned about damage to global demand by the trade war between Washington and Beijing.
Brent futures were down 15 cents, or 0.25%, at $64.24 per barrel by 12:29 p.m. EDT (1629 GMT), after gaining about 3% last week on news that OPEC and its allies would deepen output cuts. West Texas Intermediate oil futures were down 13 cents, or 0.24% to $59.07 a barrel
