Market Roundup
•Japan BoJ Core CPI (YoY) 1.5%, 1.8%forecast, 1.7% previous
Looking Ahead Economic Data(GMT)
•07:00 Sweden PPI (YoY) (Oct) -2.3% previous
•07:00 SwedenPPI (MoM) (Oct) -1.8% previous
• 10:30 German 5-Year Bobl Auction 2.130% previous
• 11:00 UK CBI Distributive Trades Survey (Nov) -14 forecast, -6 previous
Looking Ahead Events And Other Release(GMT)
• 10:00 ECB McCaul Speaks
Currency Forecast
EUR/USD: the euro slipped slower on Tuesday as dollar rallied after US President-elect Donald Trump threatened to impose tariffs on trading partners.U.S. President-elect Donald Trump on Monday pledged big tariffs on the United States' three largest trading partners - Canada, Mexico and China - detailing how he will implement campaign promises that could trigger trade wars.There's little on the calendar in Europe to distract from Trump's post, barring some central bank speakers from around the region. ECB board member Elizabeth McCaul speaks in Frankfurt and peer Mario Centeno presents the Bank of Portugal's financial stability report . Immediate resistance can be seen at 1.0463(38.2%fib), an upside break can trigger rise towards 1.0520(50%fib).On the downside, immediate support is seen at 1.0400`(23.6%fib), a break below could take the pair towards 1.0326(Daily low)
GBP/USD: The pound dipped on Tuesday as dollar rallied sharply after U.S. President-elect Donald Trump pledged tariffs on all imports from Canada and Mexico, and additional tariffs on China.Trump said that on his first day in office he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, citing concerns over illegal immigration and the trade of illicit drugs.Trump has previously pledged to end China's most-favored-nation trading status and slap tariffs on Chinese imports in excess of 60%. Sterling lost 0.34% to $1.2527. Immediate resistance can be seen at 1.2612(38.2%fib), an upside break can trigger rise towards 1.2721(50%fib).On the downside, immediate support is seen at 1.2488 (23.6%fib), a break below could take the pair towards 1.2400(Psychological level)
AUD/USD: The Australian dollar declined on Tuesday as US dollar gained traction after U.S. President-elect Donald Trump stepped up his threat to slap hefty tariffs on Canada, Mexico and China, sending the greenback sharply higher. Trump pledged a 25% tariff on all products from Mexico and Canada from his first day in office, and an additional 10% tariff on goods from China.The Aussie plunged 1% to $0.6438, the lowest since early August. Immediate resistance can be seen at 0.6555(38.2%fib), an upside break can trigger rise towards 0.6564(SMA 21).On the downside, immediate support is seen at 0.6481(Nov 19th low), a break below could take the pair towards 0.6389(April 16th low).
USD/JPY: The dollar eased against the yen on Tuesday as Japanese yen strengthen amid U.S. tariff worries. U.S. President-elect Donald Trump on Monday pledged big tariffs on the United States' three largest trading partners - Canada, Mexico and China detailing how he will implement campaign promises that could trigger trade wars. The Japanese government maintained its assessment that the economy is recovering moderately on Tuesday, while cautioning about the potential impact of U.S. President-elect Donald Trump's policies on the economic outlook. Investors now await the minutes of the Federal Reserve's November policy meeting due later in the day for cues on policymakers' thinking about the future path of policy rates. Immediate resistance can be seen at 155.28(38.2%fib) an upside break can trigger rise towards 156.00(Psychological level). On the downside, immediate support is seen at 153.98(50%fib) a break below could take the pair towards 153.63(21SMA).
Equities Recap
Asian stocks declined, giving back some of the robust gains of the previous session after U.S. President-elect Donald Trump pledged tariffs on all imports from Canada and Mexico, and additional tariffs on China.
Japan's Nikkei dropped 0.84%, Hong Kong's Hang Seng was flat, while mainland blue chips eased 0.2%
Commodities Recap
Oil prices extended declines from the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah.
Brent crude futures fell 0.38% to $72.73 a barrel, while U.S. West Texas Intermediate crude futures were at $68.62 a barrel, down 0.46%.
Gold prices plunged over 3% on Monday, breaking a five-session rally to its highest in nearly three weeks, as reports of Israel nearing a ceasefire with Hezbollah, coupled with Trump's nomination of Scott Bessent as the U.S. Treasury Secretary soured the precious metal's safe-haven appeal.
Spot gold fell 3.4% to $2,619.66 per ounce by 02:01 p.m. ET (1901 GMT), its biggest daily percentage decline since Jun.07. U.S. gold futures settled 3.5% lower to $2618.50.
Oil prices ticked up in early trade on Tuesday after falling in the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah, weighing on oil's risk premium.
Brent crude futures rose 29 cents, or 0.4%, to $73.2 a barrel as at 0430 GMT, while U.S. West Texas Intermediate crude futures were at $69.2 a barrel, up 26 cents, or 0.38%.
