Market Roundup
•US Nov NY Empire State Manufacturing Index 6.30, 13.50 forecast, 10.50 previous
•Canada Sep Manufacturing Sales (MoM) 1.5%, 1.5%, forecast, -2.0% previous
•French 6-Month BTF Auction -0.602%, -0.628% previous
•French 3-Month BTF Auction-0.600%, -0.635% previous
•French 12-Month BTF Auction -0.598%, -0.627% previous
•US 6-Month Bill Auction 0.100%, 0.110% previous
•US 3-Month Bill Auction0.090%, 0.100% previous
Looking Ahead Economic Data
•22:30 New Zealand Business NZ PMI 54.0 previous
Looking Ahead - Economic events and other releases (GMT)
•00:30 Australia RBA Meeting Minutes
•06:00 Australia RBA Assist Gov Debelle Speaks
Currencies Summary
EUR/USD: The euro strengthened on Monday as investors began the week in a relatively upbeat mood after strong economic data from Asia and on hopes for a successful vaccine against COVID-19. The euro inched higher on Monday, Despite fears of a resurgence of global cases of COVID-19, investors remain hopeful a working vaccine could rescue the global economy, helping to fuel a rally in stock markets and a rebound in riskier currencies. Immediate resistance can be seen at 1.1872 (23.6% fib), an upside break can trigger rise towards 1.1914 (Higher BB).On the downside, immediate support is seen at 1.1818 (50% fib), a break below could take the pair towards 1.1777 (50%fib).
GBP/USD: Sterling slipped against dollar on Monday as Brexit talks resumed in Brussels, while bearish bets on the pound increased for the second week running. After initially opening higher, the pound fell as investors focused on Brexit negotiations, which have failed to make progress on two key issues, competition rules and fishing.Britain left the EU in January and both sides are trying to reach a deal that would govern nearly 1 trillion dollars in annual trade before the status-quo transition period ends on Dec. 31. Immediate resistance can be seen at 1.3238 (23.6% fib), an upside break can trigger rise towards 1.3328 (23.6% fib).On the downside, immediate support is seen at 1.3158 (50%fib), a break below could take the pair towards 1.3080 (61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as promising results from a COVID-19 vaccine trial boosted investor sentiment and domestic data showed manufacturing sales climbing in September. Canadian factory sales increased by 1.5% in September from August on higher sales in the wood industry, as well as the chemical industry.U.S. crude oil futures settled 3% higher at $41.34 a barrel. The Canadian dollar traded 0.3% higher at 1.3097 to the greenback, extending its recovery from an eight-day low intraday on Friday at 1.3172. Immediate resistance can be seen at 1.3097 (38.2%fib), an upside break can trigger rise towards 1.3160 (50%fib).On the downside, immediate support is seen at 1.3021 (23.6%fib), a break below could take the pair towards 1.2963(Lower BB).
USD/JPY: The dollar gained against the Japanese yen Monday as demand for riskier assets increased on hopes for a COVID-19 vaccine and optimism arising from the prospects for a Biden presidency in the United States. Investors were also buoyed by factory output in China rising faster-than-expected in October. China’s factory output rose faster than expected in October and retail sales surged, as a recovery in the world’s second-largest economy from its COVID-19 slump gathered momentum. Strong resistance can be seen at 105.04 (50 %fib), an upside break can trigger rise towards 105.47 (61.8%fib).On the downside, immediate support is seen at 104.56 (38.2%fib), a break below could take the pair towards 104.06 (23.6%fib).
Equities Recap
European shares ended at a more-than-eight-month high on Monday as positive data from Moderna Inc’s COVID-19 vaccine boosted investor confidence in a faster pace of economic revival, while signs of recovery in Asia also helped.
UK's benchmark FTSE 100 closed up by 1.66 percent, Germany's Dax ended up by 0.47 percent, France’s CAC finished the day up by 1.70 percent.
Wall Street stocks advanced on Monday, setting the S&P 500 and the Dow on course for all-time closing highs as news of another promising coronavirus vaccine bolstered hopes of eradicating the disease, while spiking infections and new shutdowns threaten to hobble a recovery from the pandemic recession.
Dow Jones closed up by 1.60% percent, S&P 500 closed up by 1.16 % percent, Nasdaq settled up by 0.80%percent.
Treasuries Recap
U.S. Treasury yields rose on Monday and the yield curve steepened as news of another promising coronavirus vaccine boosted optimism that the economy may be closer to returning to normal, but that was tempered by a likely slow rollout.
Benchmark 10-year yields rose 1.5 basis points to 0.908%. The yields reached an eight-month high of 0.975% last Monday, ahead of new supply of three-year, 10-year and 30-year debt as part of the Treasury's quarterly refunding.
Commodities Recap
Gold retreated more than 1% on Monday after drug maker Moderna declared an effective COVID-19 vaccine in tests, bolstering hopes for a swifter economic recovery and accelerating a shift into riskier assets.
Spot gold was down 0.7% to $1,875.71 per ounce at 1251 GMT, having earlier hit its highest since Nov. 9 at $1,898.81. U.S. gold futures slipped 0.7% at $1,873.80.
Oil prices settled up more than 2% on Monday after trading higher earlier in the day as Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.
Brent crude futures for January settled up 1.04, or 2.43%, at $43.82 a barrel, after earlier rising more than 4%. U.S. West Texas Intermediate crude for December was up $1.21, or 3%, at $41.34.
