Market Roundup
- U.S. existing home sales -3.4%, more than expected in Oct, Sept unrevised was highest since '07.
- Saudi Arabia: ready to work with others to stabilize oil market; oil ends near flat after gyrating wildly.
- ECB's Lautenschlaeger says no reason for further ECB action, Draghi likely has votes to cut in Dec.
- Dollar hits 8-month high as Fed rate hike view persists, EUR dips below 1.06 for a bit.
- Fed's Tarullo: worried about too-low inflation, US econ chugging along, but still a mixed picture.
- Latin American currencies weaken on China; Argentine assets spike on Macri's victory.
- Mexico Sept retail sales fall 1.1 pct from Aug.
Looking Ahead - Economic Data (GMT)
- 01:35 JP Nikkei Mfg PMI Flash* Nov 52.4-previous
Looking Ahead - Events, Other Releases (GMT)
- 09:05 Australia RBA Gov Glenn speaks at ABE annual dinner
Currency Summaries
EUR/USD is likely to find support at 1.0590 levels and currently trading at 1.0624 levels. The pair has made session high at 1.00655and hit lows at 1.0591 levels. The dollar edged higher on Monday, pushed by hawkish comments from a regional U.S. Federal Reserve president over the weekend that helped further cement expectations of an interest rate hike in December. San Francisco Fed President John Williams on Saturday endorsed strong backing for raising rates when Fed's central bankers meet next month, as long as U.S. economic data does not disappoint. Williams, a voting member of the Federal Open Market Committee, said the Fed could raise rates in the near term, but should do so at a gradual pace. The euro fell below $1.06, hitting a new seven-month low against the dollar. It was last down 0.2 percent at $1.0623. To the upside, immediate resistance can be seen at 1.0658. To the downside, immediate support level is located at 1.0630 levels.
GBP/USD is supported in the range of 1.5089 and currently trading at 1.5114 levels. It reached session high at 1.5132 and hit low at 1.5113 levels. Sterling declined sharply on Monday as the investors are keenly awaiting for cues on mid-year budget review from the finance minister and testimony from Bank of England officials. The next policy move from the BoE is more likely to be an interest rate hike, but markets have postposed rate hike plans to the end of 2016. Sterling fell 0.2 percent to $1.5165, not far from a seven-month trough of $1.5027 hit earlier this month. Against the euro, it inched down 0.15 percent to 70.15 pence, with the single currency boosted by better than expected surveys from the euro zone that showed business growth at four-year highs. Sterling fell against the dollar, dropping around 0.5 percent to $1.5117 on Monday. To the upside, immediate resistance can be seen at 1.5143. To the downside, immediate support level is located at 1.5107 levels.
USD/JPY is supported around 122.62 levels and currently trading at 122.86 levels. It hit session high at 123.05 and made session lows at 122.75 levels. The dollar slipped lower against Japanese Yen on Monday, after U.S. home sales data came negative in October as a persistent shortage of properties limited choice for potential buyers and pushed up prices, suggesting some softening in the pace of the housing market recovery after strong gains early this year. The National Association of Realtors said on Monday existing home sales declined 3.4 percent to an annual rate of 5.36 million units. September's sales pace was unrevised at 5.55 million units and was the second highest since 2007. The weak sales come on the heels of reports last week showing a drop in housing starts in October and a dip in confidence among home builders. Economists had forecast sales falling to a rate of 5.40 million units last month. To the upside, immediate resistance can be seen at 123.00. To the downside, immediate support level is located at 122.70 levels.
USD/CAD is supported at 1.3322 levels and is trading at 1.3375 levels. It has made session high at 1.3392 and lows at 1.3331 levels. The Canadian dollar weakened against a stronger dollar on Monday, although initially in US session the Lonnie trimmed some losses in tandem with crude oil after Saudi Arabia reiterated its willingness to work with other oil producers to stabilize prices. The currency's strongest level of the session was C$1.3326, while its weakest level was C$1.3436, having moved back in sight of the 11-year low hit in September at 1. the euro, the Canadian dollar was 0.1 percent lower at C$1.4225 after business activity in the euro zone picked up at its fastest pace since mid-, Bank of Canada Deputy Governor Lynn Patterson will give a presentation on Tuesday at the University of Regina, the last scheduled appearance by a policymaker before the central bank's next interest rate decision due Dec. 2. To the upside, immediate resistance can be seen at 1.3394. To the downside, immediate support level is located at 1.3325 levels.
Equities Recap
European shares slipped lower on Monday as slow demand dragged on commodities and energy stocks, but British defence plays such as Rolls Royce rose on plans to boost military spending.
UK's benchmark FTSE 100 closed down by 0.3 percent, the pan-European FTSEurofirst 300 ended the day down by 0.2 percent, Germany's Dax ended down by 0.01 percent, France's CAC finished the day down by 0.02 percent.
U.S. stocks turned negative on Monday after a week of strong gains, while a record healthcare deal failed to impress investors.
Dow Jones closed down by 0.16 percent, S&P 500 ended down by 0.11 percent, Nasdaq finished the day up by 0.06 percent.
Treasuries Recap
U.S. Treasuries prices rose on Monday as a solid two-year note auction renewed demand for longer-dated bonds whose yield differences with shorter-dated issues contracted to their smallest levels since August.
Two-year notes were little changed in price for a yield of 0.922 percent, up 1 basis point from Friday. The yield reached 0.958 percent on Nov. 6, which was the highest since May 2010.
Benchmark 10-year notes were up 4/32 in price to yield 2.246 percent, down nearly 2 basis points. They recovered from an earlier drop of 10/32 and a yield of 2.297 percent.
Commodities Recap
Brent settled steady and U.S. crude slightly lower on Monday after prices were whipsawed by volatility as Saudi Arabia pledged to work toward oil price stability but traders worried about a global supply glut and signs of rising U.S. stockpiles.
Brent futures settled up 17 cents at $45.83 a barrel.U.S. crude's West Texas Intermediate (WTI) futures finished the session down 15 cents at $41.75.
Gold fell 1 percent on Monday, nearing last week's 2010 low on a robust dollar and upbeat comments from Federal Reserve officials on a possible U.S. rate hike next month.
Spot gold was down 0.9 percent at $1,068 an ounce at 3:00 p.m. EST (2000 GMT), down for a 13th of the 16 trading days so far this month. Its session low was $1,066.60, just shy of last week's lowest since February 2010 at $1,064.95.
U.S. gold futures for December delivery settled down 0.9 percent at $1,066.80 an ounce.
