Market Roundup
•Canada GDP (QoQ) (Q3) 8.9% ,-11.5% previous
•Canada GDP (YoY) (Q3) -5.16%, -13.01% previous
•Canada GDP Annualized (QoQ) (Q3) 40.5% ,47.6% forecast, -38.7% previous
•Canada GDP Implicit Price (QoQ) (Q3) 2.60% -1.20% previous
•Canada Sep GDP (MoM) 0.8%, 0.9% forecast, 1.2% previous
•US Redbook (MoM) 1.3% ,-0.5% previous
•US Redbook (YoY) 9.2% ,2.8% previous
•Canada Nov RBC Manufacturing PMI 55.8, 55.5 previous
•New Zealand GlobalDairyTrade Price Index 4.3% ,1.8% previous
•US Nov Manufacturing PMI 56.7, 53.4 previous
•US Oct Construction Spending (MoM) 1.3%, 0.8% forecast, 0.3% previous
•US Nov ISM Manufacturing Employment 48.4, 53.2 previous
•US ISM Manufacturing New Orders Index 65.1, 67.9 previous
•US Nov ISM Manufacturing PMI 57.5 ,58.0 forecast, 59.3 previous
•US Nov ISM Manufacturing Prices 65.4 ,65.0 forecast, 65.5 previous
•US Nov Dallas Fed Services Revenues -0.7 , 7.1 previous
•US Texas Nov Services Sector Outlook -2.6, 13.2 previous
Looking Ahead Economic Data(GMT)
•05:00 Japan Nov Household Confidence 33.6 previous
Looking Ahead - Events, Other Releases (GMT)
Currency summaries
EUR/USD: The euro rose against dollar on Tuesday as the U.S. dollar fell on expectations of more monetary stimulus from the United States. Worries about rising coronavirus cases have not provided the dollar with much support. Speculation is growing that the Federal Reserve will act to support the economy through a tough winter before vaccinations become available. The Fed meets to set policy on Dec. 15 and 16. Before then on Tuesday and Wednesday Fed Chair Jerome Powell will appear before Congress, and his remarks will be closely watched for any clues as to the Fed’s next moves. Euro/dollar was up 0.3% at $1.1964, close to $1.2004, its highest since Sept. Immediate resistance can be seen at 1.2076 (Daily high), an upside break can trigger rise towards 1.2126(23.6%fib).On the downside, immediate support is seen at 1.2046 (38.2%fib), a break below could take the pair towards 1.2000 (Psychological level).
GBP/USD: The pound rose against dollar on Tuesday as market participants remained optimistic that a Brexit deal could be reached this week, despite a lack of tangible progress in negotiations. The UK left the European Union in January and is currently in a status quo transition period that will end on Dec. 31. Both sides are currently in trade talks to reach an agreement on the UK’s future relationship with the bloc. The pound rose, pushed up above $1.34 by a weaker dollar. At 0841 GMT it was at a three-month high of $1.3403, up 0.6% on the day. Immediate resistance can be seen at 1.3439(23.6%fib), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3368 (38.2%fib), a break below could take the pair towards 1.3312(50%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as the potential for U.S. economic stimulus and approval of a coronavirus vaccine bolstered investor sentiment, while domestic data showed the economy growing at a record pace.The loonie was trading 0.5% higher at 1.2935 to the greenback, or 77.31 U.S. cents, having traded in a range of 1.2930 to 1.3006. On Monday, it notched its strongest intraday level in over two years at 1.2919. Immediate resistance can be seen at 1.2973 (5DMA), an upside break can trigger rise towards 1.3028 (38.2%fib).On the downside, immediate support is seen at 1.2927(23.6%fib), a break below could take the pair towards 1.2900(Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday after robust China data boosted expectations of a recovery from the COVID-19 downturn and as drugmakers seeks fast approval for their vaccines and authorities look set to keep stimulus support. Breakthroughs in vaccine developments from top drugmakers Pfizer, Moderna and AstraZeneca last month along with a market-friendly outcome of the U.S. presidential election helped dollar gain against Japanese yen. At 13:00 GMT, the dollar was 0.06 percent higher versus the yen at 104.36.Strong resistance can be seen at 104.30 (Daily high), an upside break can trigger rise towards 104.63 (50% fib).On the downside, immediate support is seen at 104.00 (Psychological level), a break below could take the pair towards 103.85 (23.6% fib).
Equities Recap
European shares made a positive start to the month on Tuesday following record-breaking gains in November, with optimism around a coronavirus vaccine strengthening the case for economic recovery.
UK's benchmark FTSE 100 closed up by 1.89 percent, Germany's Dax ended up by 0.69 percent, France’s CAC finished the day up by 1.14 percent.
The S&P 500 and the Nasdaq hit record highs on Tuesday as hopes that a COVID-19 vaccine will be available soon and better-than-expected factory data from China bolstered bets of a speedy economic recovery.
Dow Jones closed up by 0.63% percent, S&P 500 closed down by 1.13% percent, Nasdaq settled up by 1.28% percent.
Treasuries Recap
U.S. Treasury yields surged on Tuesday, propelled by a new push in Congress to send federal aid to businesses and state and local governments slammed by the coronavirus pandemic.
The benchmark 10-year yield was last up 7.9 basis points at 0.9211%, after hitting a session high of 0.938%, its highest since Nov. 12. The most closely watched section of the yield curve steepened to its widest also since Nov. 12.
Commodities Recap
Gold jumped over 2% on Tuesday, rebounding from a five-month low in the last session, and silver soared over 5%, as the dollar slid, with U.S. stimulus bets due to mounting COVID-19 cases adding to bullion’s appeal as an inflation hedge.
Spot gold climbed 1.9% to $1,810.02 per ounce by 11:41 a.m. EST (1641 GMT). U.S. gold futures gained 1.8% to $1,808.90.
Oil prices extended losses to a second day on Tuesday after OPEC and its allies left markets in limbo by postponing a formal meeting to decide whether to lift output come January.
Brent crude ended the session down 46 cents, or 1%, at $47.42 a barrel, while U.S. West Texas Intermediate settled down 79 cents, or 1.7%, at $44.55.
