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America’s Roundup: Dollar recovers from more than two-year low as U.S. stocks slide,Gold slips to a five-month low, Oil prices fall as OPEC+ debates 2021 output policy-December 1st,20202

Market Roundup

• French 12-Month BTF Auction -0.647%, -0.616% previous

• French 3-Month BTF Auction -0.655%,-0.634% previous

•US Nov Chicago PMI   58.2, 59.0 forecast, 61.1 previous

•US Oct Pending Home Sales (MoM) -1.1%,  1.0% forecast, -2.2%previous

•US Oct Pending Home Sales Index  128.9, 130.0 previous

•US Nov Dallas Fed Mfg Business Index                12.0, 19.8 previous

•US 3-Month Bill Auction 0.085%, 0.085% previous

Looking Ahead - Economic Data (GMT) 

• 23:30 Japan Oct Jobs/applications ratio   1.03 forecast, 1.03 previous

• 23:50 Japan Oct Unemployment Rate  3.1% forecast, 3.0% previous

• 23:50 Japan Capital Spending (YoY) (Q3) -12.0% forecast, -11.3% previous

•00:30 Australia Oct Building Approvals (MoM)  -3.0% forecast, 15.4% previous

•00:30 Australia Net Exports Contribution (Q3) -1.7% forecast, 1.0% previous

•00:30 Australia Current Account (Q3)    7.1B forecast, 17.7B previous

•00:30 Australia Private House Approvals  9.7% previous

•03:30 Australia Dec RBA Interest Rate Decision  0.10% forecast, 0.10% previous

Looking Ahead - Events, Other Releases (GMT)      

•03:30 Australia RBA Rate Statement

Currency Summaries

EUR/USD: The euro dipped against the U.S. dollar on Monday, as broad risk sentiment soured again and shares on Wall Street fell, with investors disheartened by any traction on another stimulus package. German annual consumer prices fell further in November, pushed down by a VAT cut introduced as part of the government’s stimulus push to help Europe’s largest economy recover from the coronavirus shock. Consumer prices fell 0.7% year-on-year after shrinking by 0.5% in the previous month, the Federal Statistics Office said. Immediate resistance can be seen at 1.1925 (Nov 27th high), an upside break can trigger rise towards 1.2000 (23.6%fib).On the downside, immediate support is seen at 1.1922 (38.2%fib), a break below could take the pair towards 1.1888 (11DMA).

GBP/USD: Sterling gained on Monday as traders clung to hopes that Britain and the European Union will soon seal a long-awaited Brexit trade deal. The United Kingdom exits the EU’s orbit on Dec. 31, when a transition period of informal membership ends following its formal departure last January. The sides are trying to secure a deal to govern nearly $1 trillion in annual trade from Jan. 1 but are yet to bridge differences on fishing, state aid and how to resolve any future disputes. Immediate resistance can be seen at 1.3365(Daily high), an upside break can trigger rise towards 1.3409 (23.6%fib).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3269 (14DMA).

USD/CAD: The Canadian dollar strengthened to a three-week high against its U.S. counterpart on Monday before paring some gains, with the currency benefiting from optimism this month that a COVID-19 vaccine will help lead to a stronger global economic recovery. The loonie was trading 0.2% higher at 1.2970 to the greenback, having touched its strongest intraday level since October 2018 at 1.2923. For the month, the Canadian dollar was up 2.7%.Immediate resistance can be seen at 1.2998 (5DMA), an upside break can trigger rise towards 1.3025 (38.2%fib).On the downside, immediate support is seen at 1.2967 (Lower BB ), a break below could take the pair towards 1.2929 (23.6% fib)

USD/JPY: The dollar strengthened against the Japanese yen on Monday, as the prospect of a vaccine-driven economic recovery next year and further stimulus measures by central banks eclipsed immediate concerns about the spiking coronavirus pandemic. Federal Reserve Chair Jerome Powell testifies to Congress on Tuesday amid speculation of further policy action at its next meeting in mid-December. Strong resistance can be seen at 104.11 (38.2%fib), an upside break can trigger rise towards 104.38 (Higher BB).On the downside, immediate support is seen at 103.85 (23.6%fib), a break below could take the pair towards 103.00(Psychological level).

Equities Recap

Europe’s benchmark stock index posted its biggest monthly gain on record on the prospect of easing coronavirus restrictions and hopes for a COVID-19 vaccine, but ended Monday lower with eyes on the Brexit trade deal negotiations.

The UK's benchmark FTSE 100 closed down by 1.59 percent, Germany's Dax ended down  by 0.33percent, and France’s CAC finished the down 1.42 percent.

U.S. stock index futures dipped on Monday as investors paused ahead of crucial economic indicators later this week to take stock of what was set to be a record-setting month for the benchmark S&P 500.

Dow Jones closed down at 1.21 percent, S&P 500 ended down 0.77 percent, Nasdaq finished the day down by 0.06 percent.

Treasury Recap

The U.S. Treasury curve was slightly steeper on Monday afternoon even though traders were in the process of rebalancing their portfolios for month-end, an event which typically drives longer-dated yields lower.

The spread between the two- and 10-year Treasury yields , one measure of the yield curve, was about a basis point wider on Monday at 69.4 basis points.

Commodities Recap

Oil edged lower on Monday as the world’s major oil producers discussed extending deep output cuts at talks this week, but benchmark crude ended the month with a strong rally built on hopes that COVID-19 vaccines will soon be available.

Brent crude for January delivery, which expires on Monday, settled at $47.59 a barrel, dropping 59 cents, or 1.2%. The more actively traded February Brent contract was down 37 cents at $47.88.

Gold dropped to a five-month low on Monday and was on track for its worst month in four years as optimism over a swift vaccine-fuelled economic recovery dented allure for safe havens.

Spot gold was down 0.8% at $1,773.56 per ounce by 10:11 a.m. EST (1511 GMT), having earlier hit its lowest level since July 2 at $1,764.29, and has shed 5.6% so far this month.U.S. gold futures dropped 0.4% to $1,780.10 per ounce.

 

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