Market Roundup
• US Building Permits (MoM) (Oct): -0.6%, -3.1% forecast, -3.1% previous
• US Housing Starts (MoM) (Oct): -3.1%, -1.9% forecast, -1.9% previous
• US Housing Starts (Oct): 1.311M, 1.340M forecast, 1.353M previous
• Canada Common CPI (YoY) (Oct): 2.2%, , 2.1% forecast, 2.1% previous
• Canada Core CPI (MoM) (Oct): 0.4,,0.0% forecast, 0.0% previous
• Canada Core CPI (YoY) (Oct): 1.7%, 1.6% forecast, 1.6% previous
• Canada CPI (YoY) (Oct): 2.0%, 1.9% forecast, 1.6% previous
• Canada CPI (MoM) (Oct): 0.4%, 0.3% forecast, -0.4% previous
• Canada Median CPI (YoY) (Oct): 2.5%, 2.2% forecast, 2.3% previous
• Canada Trimmed CPI (YoY) (Oct): 2.6%, 2.4% forecast, 2.4% previous
• US Redbook (YoY): 5.1%, 4.8% previous
• US Atlanta Fed GDPNow (Q4): 2.6%, 2.5% forecast, 2.5% previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Adjusted Trade Balance: -0.15T forecast, -0.19T previous
• 23:50 Japan Exports (YoY) (Oct): 2.2% forecast, -1.7% previous
• 23:50 JapanImports (YoY) (Oct): -0.3% forecast, 2.1% previous
• 23:50 Japan Trade Balance (Oct): -360.4Bforecast, -294.1B previous
• 01:00 China PBoC Loan Prime Rate (Nov) 3.60% forecast,3.60% previous
• 01:15 China PBoC Loan Prime Rate 3.10%forecast, 3.10% previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro initially dipped on Tuesday but recovered ground as safe-haven flows abated after Russian Foreign Minister Sergei Lavrov said Russia will do everything possible to prevent the breakout of nuclear war. Markets had been put on edge earlier after Russian President Vladimir Putin lowered the threshold for a nuclear strike in response to a broader range of conventional attacks, and Moscow said Ukraine had struck deep inside Russia with U.S.-made ATACMS missiles. It hit $1.0496 last week, its lowest since early October 2023. Immediate resistance can be seen at 1.0611(38.2%fib), an upside break can trigger rise towards 1.0671(50%fib).On the downside, immediate support is seen at 1.0538`(23.6%fib), a break below could take the pair towards 1.0521(Lower BB)
GBP/USD: The pound recovered from early losses as investors avoided big bets ahead of a key inflation report and monitored tensions between Russia and the U.S. over Ukraine. Investors were squarely focused on Wednesday's inflation report after Bank of England Governor Andrew Bailey said upcoming interest rate cuts should be more gradual following tax changes in the recent government budget, which retailers have flagged could feed price pressures. A poll of economists suggest the BoE will keep policy rates unchanged in December in light of renewed worries over global inflation. Sterling recoverd 0.04% to $1.2688.Immediate resistance can be seen at 1.2693(SMA 5), an upside break can trigger rise towards 1.2723(38.2%fib).On the downside, immediate support is seen at 1.2592 (23.6%fib), a break below could take the pair towards 1.2515(My 14th low)
USD/CAD: The Canadian dollar strengthened for a second consecutive day against the U.S. dollar on Tuesday, boosted by hotter-than-expected domestic inflation data. Canada's annual inflation rate rose to 2.0% in October, up from 1.6% in September, surpassing the 1.9% forecast by economists. The increase was driven by a smaller-than-expected decline in gas prices compared to the previous month. Money markets see a 23% chance the BoC would cut interest rates by half a percentage point at its next policy decision on Dec. 12, down from 38% before the data. The Canadian dollar was trading 0.3% higher at 1.3970 to the U.S. dollar, or 71.58 U.S. cents, extending its rebound from a 4-1/2-year low on Friday at 1.4105.Immediate resistance can be seen at 1.3981(9 SMA), an upside break can trigger rise towards 1.4059(23.6%fib).On the downside, immediate support is seen at 1.3946(38.2%fib), a break below could take the pair towards 1.3847 (50%fib).
USD/JPY: The dollar rebounded against the yen on Tuesday after announcement by Russia that it would lower its threshold for a nuclear strike faded following comments by Russian and U.S. officials. Ukraine used U.S. ATACMS missiles to strike Russian territory for the first time, Moscow said, in an attack regarded by Russia as a major increase in hostilities on the war's 1,000th day.Putin approved the change to Russia's nuclear doctrine days after two U.S. officials and a source familiar with the decision said on Sunday that U.S. President Joe Biden's administration would allow Ukraine to use U.S.-made weapons to strike deep into Russia.The dollar index, which measures the greenback against a basket of currencies, rose 0.03% to 106.25 after reaching a high of 106.63 in the session, Immediate resistance can be seen at 154.84(38.2%fib) an upside break can trigger rise towards 157.07(23.6%fib). On the downside, immediate support is seen at 152.91(50%fib).) a break below could take the pair towards 151.12(61.8%fib).
Equities Recap
Europe's main stock index fell to a three-month low, as investors shifted from risky assets to safe havens amid heightened geopolitical tensions following Russia's warning on its updated nuclear doctrine.
UK's benchmark FTSE 100 closed down by 0.13 percent, Germany's Dax ended down by 0.67 percent, France’s CAC finished the day down by 0.67 percent.
The Nasdaq rose more than 1% and S&P 500 also ended higher on Tuesday, led by a jump in technology shares as investors eagerly awaited results this week from Nvidia, while Walmart shares climbed after the retailer raised its annual forecasts.
Dow Jones closed down by 0.28 percent, S&P 500 closed up by 0.40 percent, Nasdaq settled up by 1.02 % percent.
Commodities’ Recap
Oil prices were broadly unchanged on Tuesday as signs of escalation of the Russia-Ukraine war kept investors cautious of supply disruptions, but the partial restart of production in Norway's Johan Sverdrup oilfield limited gains.
Brent crude futures rose by a cent to settle at $73.31 per barrel. U.S. West Texas Intermediate crude futures rose 0.3%, or 23 cents, to close at $69.39 a barrel.
Gold prices climbed for a second consecutive session on Tuesday, hitting a one-week high as mounting Russia-Ukraine tensions sparked a rush for safe-haven assets, while investors awaited key signals on the Federal Reserve's interest rate plans.
Spot gold rose 0.6% to $2,628.76 per ounce by 01:42 p.m. ET (1842 GMT), hitting its highest level since Nov.11. U.S. gold futures settled 0.6% higher at $2,631 per ounce.
