Market Roundup
- Gold gains as Hong Kong tensions unnerve investors
- Oil steady ahead of OPEC+ meet
Economic Data Ahead
- (0200 ET/0700 GMT) German retail sales October
- (0355 ET/0855 GMT) German unemployment rate October
- (0500 ET/1000 GMT) EZ consumer price index Prelim Nov
- (0500 ET/1000 GMT) EZ consumer price index - core Prelim Nov
Key Events Ahead
- No significant events scheduled
FX Beat
DXY: The dollar index held firm near a 2-week peak, amid signs of U.S. labor market strength and a possible turnaround in business investment. The greenback against a basket of currencies traded up at 98.32, having touched a high of 98.44 on Wednesday, its highest since November 13.
EUR/USD: The euro rose, extending previous session gains as investors continued to digest yesterday's data that showed Eurozone economic sentiment rebounded more than expected in November, boosted by optimism in the services sector and a better mood in industry and among consumers. The European currency traded 0.05 percent up at 1.1012, having touched a low of 1.0992 on Wednesday, its lowest since November 14. Investors’ attention will remain on a series of data from the eurozone economies, EZ consumer price index, unemployment rate and ECB Luis De Guindos' speech, amid a lack of economic data from the U.S. docket. Immediate resistance is located at 1.1038 (10-DMA), a break above targets 1.1052 (21-DMA). On the downside, support is seen at 1.0989, a break below could drag it below 1.0966.
USD/JPY: The dollar declined after rising to a 6-month peak earlier in the session on data showing the U.S. economy on a firm footing that prompted investors to scale back rate-cut bets. However, doubts over a preliminary U.S.-China trade deal dented the upside in the pair. The major was trading 0.05 percent down at 109.47, having hit a high of 109.60 earlier, its highest since May 31. Investors’ will continue to track the broad-based market sentiment, amid a lack of economic data from the U.S. docket. Immediate resistance is located at 109.74, a break above targets 109.92. On the downside, support is seen at 109.28, a break below could take it near at 109.00.
GBP/USD: Sterling gained, reversing most of its previous losses, after a model from pollsters YouGov showed Britain’s governing Conservative Party would win a comfortable majority in the December 12 election. The major traded 0.1 percent up at 1.2917, having hit a high of 1.2951 on Thursday, it’s highest since November 21. Investors’ attention will remain on the development surrounding the general elections, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2945, a break above could take it near 1.3000. On the downside, support is seen at 1.2882 (21-DMA), a break below targets 1.2823. Against the euro, the pound was trading flat at 85.24 pence, having hit a high of 84.99 on Thursday, it’s highest since May 8.
AUD/USD: The Australian dollar gained but was heading for a fourth straight week of losses as uncertainty shrouded the U.S.-China trade talks. The Aussie trades 0.1 percent up at 0.6775, having hit a low of 0.6759 the day before, it’s lowest since October 17. Immediate support is seen at 0.6750, a break below targets 0.6715. On the upside, resistance is located at 0.6793 (10-DMA), a break above could take it near 0.6834.
NZD/USD: The New Zealand dollar rose, halting a 2-day losing streak, and was heading for its third week of gains boosted by a run of upbeat domestic data. The Kiwi trades 0.1 percent up at 0.6422, having touched a high of 0.6433 on Wednesday, its highest level since November 21. Immediate resistance is located at 0.6449, a break above could take it near 0.6465. On the downside, support is seen at 0.6394 (21-DMA), a break below could drag it below 0.6360.
Equities Recap
Asian shares tumbled amid concerns a new U.S. law backing Hong Kong protesters could hamper efforts to end the U.S.-China trade war.
MSCI's broadest index of Asia-Pacific shares outside Japan slumped 0.2 percent.
Tokyo's Nikkei eased 0.4 percent to 23,328.29 points, Australia's S&P/ASX 200 index declined 0.3 percent to 6,846.00 points and South Korea's KOSPI plunged 1.3 percent to 2,091.16 points.
Shanghai composite index fell 0.9 percent to 2,862.93 points, while CSI 300 index traded 1.3 percent down at 3,813.68 points.
Hong Kong’s Hang Seng traded 2.1 percent lower at 26,324.29 points. Taiwan shares shed 1.1 percent to 11,489.57 points
Commodities Recap
Crude oil prices declined as investors cautiously awaited a meeting of OPEC and its allies next week that may result in the extension of a production cut agreement to support the market. International benchmark Brent crude was trading 1.5 percent down at $62.94 per barrel by 0530 GMT, having hit a low of $62.90 earlier, its lowest since November 21. U.S. West Texas Intermediate was trading 0.6 percent down at $57.92 a barrel, after rising as high as $58.71 last week, its highest since September 23.
Gold prices surged but remained on track for their worst month in three years as hopes for a preliminary U.S.-China trade deal supported demand for riskier assets. Spot gold was trading 0.3 percent up at $1,458.98 per ounce by 0532 GMT, having touched a low of $1449.92 on Tuesday, its lowest since Nov. 12. U.S. gold futures rose 0.3 percent to $1,457.80.
Treasuries Recap
The yields on 3-year paper declined 13 basis points just this week to 0.61 percent, not far from the all-time low of 0.57 percent. The yields on 10-year bonds were off 8 basis points for the week at 1.01 percent and approaching their record trough of 0.85 percent.
The New Zealand bonds with 10-year yields were down 5 basis points for the week at 1.32 percent.
