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America’s Roundup: Dollar recovers in face of Omicron ,Wall Street closes lower, Gold bounces, Oil falls on Omicron variant concerns-November 2nd,2021

Market Roundup

•US Nov ADP Nonfarm Employment Change  534K,525K forecast, 571K previous

•Canada Oct Building Permits (MoM)  1.3%,-1.0% forecast, 4.3% previous

•Canada Nov Manufacturing PMI  57.2,57.7 previous

•US Nov Manufacturing PMI  58.3,59.1 previous

•US Oct Construction Spending (MoM)  0.2%,0.4% forecast, -0.5% previous

•US Nov ISM Manufacturing PMI 61.1, 61.0 forecast, 60.8 previous

•US ISM Manufacturing Employment   53.3,52.0 previous

•US Crude Oil Inventories -0.910M, -1.237M forecast, 1.017M previous

•US Cushing Crude Oil Inventories 1.159M,  0.787M previous

Looking Ahead Economic Data (GMT)

•03: 00 Australia Nov AIG Construction Index  57.6 previous

•03: 30 Australia Services PMI 55.0 previous

•06: 00 Japan Nov Services PMI  50.7 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro dipped against dollar on Wednesday after data showed German factory activity in November dipped. Supply chain problems held back growth in German manufacturing activity for the fourth month running in November, a survey showed on Wednesday, supporting expectations for a weak final quarter for factories in Europe's largest economy.IHS Markit's final Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of Europe's largest economy, fell to 57.4 in November, down from 57.8 in October and the lowest in 10 months. The euro lost 0.2% on the day to $1.1314. Immediate resistance can be seen at 1.1374(50%fib), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1314(5DMA), a break below could take the pair towards 1.1289(38.2%fib).

GBP/USD: The British pound inched higher on Wednesday but held near a 2021 low versus the U.S. dollar as doubts grew on whether the Bank of England will raise interest rates at a policy meeting this month. The BoE said in November it would probably have to raise rates from its all-time low of 0.1% "over the coming months", but policymakers have sounded increasingly divided on this prospect after a new coronavirus variant was detected. Sterling edged 0.2% higher to $1.33 after falling briefly below $1.32 to a fresh 2021 low in volatile trading on Tuesday.Immediate resistance can be seen at 1.3291(5DMA), an upside break can trigger rise towards 1.3342(38.2%fib).On the downside, immediate support is seen at 1.3262 (23.6%fib), a break below could take the pair towards 1.3204(Daily low).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday, giving back its earlier gains as a rebound in oil petered out and investor appetite for risk remained fragile. The price of oil, one of Canada's major exports, reversed course after a U.S. official said the country was still considering tools to lower energy prices, and as government data pointed to weaker gasoline demand. U.S. crude oil futures settled 0.9% lower at $65.57 a barrel. The loonie was trading 0.2% lower at 1.2807 to the greenback , after trading in a range of 1.2713 to 1.2828. On Tuesday, it touched a 10-week low at 1.2837. Immediate resistance can be seen at 1.2838(23.6%fib), an upside break can trigger rise towards 1.2896 (20th Sep high).On the downside, immediate support is seen at 1.2774 (38.2%fib), a break below could take the pair towards 1.2721 (50%fib).

USD/JPY: The dollar recovered ground against the Japanese yen on Wednesday as dollar found support in renewed expectations for interest rates hikes. U.S. central bankers in December will discuss whether to end bond purchases a few months earlier than expected, Federal Reserve Chair Jerome Powell said, pointing to a strong economy, stalled workforce growth and high inflation that is expected to last into mid-2022. The dollar's was also was supported after report from the Institute for Supply Management came out showing that U.S. manufacturing activity picked up in November amid strong demand for goods, keeping inflation high as factories continued to struggle with pandemic-related shortages of raw materials.  Strong resistance can be seen at 113.10 (38.2% fib), an upside break can trigger rise towards 113.67(23.6%fib).On the downside, immediate support is seen at 112.60(50%fib), a break below could take the pair towards 112.12(61.8%fib).

Equities Recap

European shares posted their best session in almost six months on Wednesday, as investors picked up beaten down stocks that were hammered in the past few sessions by fears of the spread of a new and highly infectious strain of the coronavirus.

UK's benchmark FTSE 100 closed up at 1.55 percent, Germany's Dax ended down by 2.47  percent, France’s CAC finished the the day up at 2.39 percent.

Wall Street closed lower on Wednesday after a morning rally faded as investors fretted about the latest coronavirus variant and the first evidence of its U.S. arrival while they also digested Federal Reserve Chair Jerome Powell's comments on surging inflation.

Dow Jones closed down by 1.34 percent, S&P 500 ended down by 1.18 percent, Nasdaq finished the day down by 1.83 percent.

Treasuries Recap

Longer-dated U.S. Treasury yields were little changed after giving up earlier gains on Wednesday as the Omicron coronavirus variant was found in the United States, though short-dated yields stayed higher on chances that the U.S. Federal Reserve will speed up its bond purchase tapering.

Benchmark 10-year yields were little changed on the day at 1.434%, after earlier rising to 1.506%.

Commodities Recap

Gold rose on Wednesday, tracking a retreat in the dollar as investors used a pullback in the previous session to buy bullion as a hedge against wider market volatility amid concerns over the impact of the Omicron coronavirus variant.

Spot gold was up 0.4% to $1,780.05 per ounce by 2:33 p.m. ET (1933 GMT ).U.S. gold futures settled up 0.4% at $1,784.30.

 Oil prices tumble on Wednesday as concerns about the first U.S. case of the Omicron variant and sooner-than-expected interest rate hikes next year by the Federal Reserve turned investor sentiment bearish.

U.S. crude futures fell 61 cents to settle at $65.57 a barrel after earlier trading as much as 4% higher, while global benchmark Brent crude slid 36 cents to settle at $68.87 a barrel.

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