Market Roundup
•German Sep Exports (MoM) -0.7%,0.5% forecast, -1.2% previous
•German Sep Trade Balance 13.2B,13.6B forecast, 13.0B previous
•German Sep Imports (MoM) 0.1%, 0.6% forecast, 3.5% previous
•German Sep Current Account Balance n.s.a 19.6B, 11.8B previous
•French Sep Current Account -2.70B,-1.30B previous
• French Sep Exports 42.0B,42.3B previous
•French Sep Imports 48.8B,49.0B previous
•German Nov ZEW Current Conditions 12.5, 18.0 forecast, 21.6 previous
•German Nov ZEW Economic Sentiment 31.7,20.0 forecast, 22.3 previous
•EU Nov ZEW Economic Sentiment 25.9, 21.0 previous
Looking Ahead Economic Data (GMT)
•13:30 US Oct Core PPI (YoY) 6.8% forecast, 6.8% previous
•13:30 US Oct PPI (YoY) 8.7% forecast, 8.6% previous
•13:30 US Oct PPI (MoM) 0.6% forecast, 0.5% previous
•13:30 US Oct Core PPI (MoM) 0.5% forecast,0.2% previous
•13:30 US Oct PPI (MoM) 0.6% forecast, 0.5% previous
•13:55 US Redbook (YoY) 16.9% previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 ECB President Lagarde Speaks
•13:15 ECB's Enria Speaks
•14:00 ECB McCaul Speaks
•14:00 US Fed Chair Powell Speaks
•14:00 US BoE Gov Bailey Speaks
•14:00 ECB's Schnabel Speaks
•16:45 FOMC Member Daly Speaks
•17:10 Canada BoC Deputy Governor Beaudry Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Tuesday as German investor morale rose in November. Investor sentiment in Germany rose unexpectedly in November on expectations that price pressures will ease at the start of next year and growth will pick up in Europe's largest economy, a survey showed on Tuesday. The ZEW economic research institute said its economic sentiment index increased to 31.7 from 22.3 points in October. The euro , which had dropped to a 15-month trough of $1.15135 last week, firmed 0.2% to $1.1606. Immediate resistance can be seen at 1.1593 (38.2%fib), an upside break can trigger rise towards 1.1646 (50%fib).On the downside, immediate support is seen at 1.1576 (5DMA), a break below could take the pair towards 1.1545 (Lower BB).
GBP/USD: Sterling was little changed against dollar on Tuesday as fading rate hike expectations continued to weigh on sentiment. Sterling fell sharply after the Bank of England surprised the market by leaving interest rates unchanged last week, while investors bet that policymakers will keep rates on hold for now. Markets are assigning an around 50% probability of a rate hike in December, while before the BoE meeting, they had priced two rate hikes by year-end. The pound flatlined against the dollar by 0820 GMT at $1.357, off a $1.3425 five-week low hit on Friday. Immediate resistance can be seen at 1.3608 (50%fib), an upside break can trigger rise towards 1.3672(61.8%fib).On the downside, immediate support is seen at 1.3546(38.2%fib), a break below could take the pair towards 1.3496(Lower BB).
USD/CHF: The dollar was little changed against the Swiss franc on Tuesday as investors were reluctant to commit further to the rally before getting a clearer picture of the surge in U.S inflation. The dollar index, which tracks the greenback against a basket of six currencies, was down 0.06% at 94.00. At (GMT 11:03), greenback gained 0.38% versus the Swiss franc to 0.9155.Immediate resistance can be seen at 0.9156 (38.2%fib), an upside break can trigger rise towards 0.9184 (50%fib).On the downside, immediate support is seen at 0.9114 (23.6%fib), a break below could take the pair towards 0.9076 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as traders awaited inflation figures due in the U.S. and China to guide the interest rate outlook. The data due on Wednesday is expected to show U.S. consumer prices galloped and Chinese factory gate prices soared in October. But it also comes as commodity prices have eased from peaks and central bankers have dampened speculation that they will raise interest rates imminently. Strong resistance can be seen at 113.23 (38.2%fib), an upside break can trigger rise towards 113.48(5DMA).On the downside, immediate support is seen at 112.75(50% fib), a break below could take the pair towards 112.33(61.8%fib).
Equities Recap
European shares were trading near record highs on Tuesday, with strong corporate earnings aiding sentiment, while investors awaited fresh U.S. inflation data for clues on the direction of interest rates.
At (GMT 11:40),UK's benchmark FTSE 100 was last trading up at 0.17 percent, Germany's Dax was up by 0.28 percent, France’s CAC was last up by 0.32 percent.
Commodities Recap
Gold prices held near a two-month high on Tuesday, drawing support from lower U.S. yields and a weaker dollar in the run-up to data could shed more light on the U.S. inflation picture.
Spot gold edged up 0.05% to $1,825.11 per ounce by 0942 GMT, just about $2 shy of its Sept. 7 high. U.S. gold futures for December delivery fell 0.1% to $1,825.80 per ounce.
Oil rose towards $84 a barrel on Tuesday, gaining for a third session, as the U.S. lifting of travel restrictions and more signs of a global post-pandemic recovery lifted the demand outlook, while supply remained tight.
Brent crude rose 50 cents, or 0.6%, to $83.93 a barrel by 0920 GMT, after gaining 0.8% on Monday. U.S. oil advanced 41 cents, or 0.5%, to $82.34, also after a 0.8% rise the previous day.
