Market Roundup
•Spanish CPI (YoY) -0.8%,-0.8% previous
• Spanish CPI (MoM) 0.2%,0.5% previous
•Spanish HICP (MoM) 0.1%,0.3% previous
•Spanish Nov HICP (YoY) -0.9%, -0.8% forecast, -0.9% previous
•UK BoE Consumer Credit -0.590B, 0.285B previous
•UK M4 Oct Money Supply (MoM) 0.6%,1.0% forecast, 0.9% previous
•UK Oct Mortgage Approvals 97.53K, 84.49K forecast, 91.45K previous
•UK Oct Mortgage Lending 4.29B, 4.46B forecast, 4.83B previous
•UK Net Lending to Individuals 3.7B, 4.7B forecast, 4.2B previous
• Italian CPI (YoY) -0.2%,-0.4% forecast, -0.3% previous
•Italian Nov CPI (MoM) -0.1%,0.1% forecast, 0.2% previous
•Italian Nov HICP (YoY) -0.3%,-0.5% forecast, -0.6% previous
•Portuguese GDP (YoY) (Q3) -5.7%,-5.7% previous
•Portuguese GDP (QoQ) (Q3) 13.3%,13.3% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Oct Building Permits (MoM) -5.0% forecast, 17.0% previous
•12:30 Canada Oct RMPI (YoY) -9.4% previous
•12:30 Canada Oct RMPI (MoM) -2.2% previous
•12:30 Canada Oct IPPI (MoM) 0.1% forecast, -0.1% previous
•12:30 Current Account (Q3) -9.1B forecast, -8.6B previous
•13:00 Belgian GDP (QoQ) (Q3) 10.7% previous
• 13:30 French 12-Month BTF Auction -0.616% previous
• 13:30 French 3-Month BTF Auction -0.634% previous
•14:15 US Nov Chicago PMI 59.0 forecast, 61.1 previous
•15:00 US Oct Pending Home Sales (MoM) 1.0% forecast, -2.2% previous
•15:00 US Oct Pending Home Sales Index 130.0 previous
•15:00 US Nov Dallas Fed Mfg Business Index 19.8 previous
•16:00 Canada Sep Budget Balance (YoY) -170.52B previous
•16:00 Canada Sep Budget Balance -21.94B previous
•16:30 US 3-Month Bill Auction 0.085% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fx Beat
EUR/USD: The euro rose against the U.S. dollar on Monday, as a combination of optimism over a COVID-19 vaccine and stable U.S. politics drove buying of risk-driven assets. Joe Biden’s U.S. presidential win also bolstered hopes for calmer trade policies in the world’s largest economy. The euro was down 0.02 percent at $1.1138. Immediate resistance can be seen at 1.1990 (Daily High), an upside break can trigger rise towards 1.2015 (Higher BB).On the downside, immediate support is seen at 1.1987 (Daily low), a break below could take the pair towards 1.1923 (38.2%fib).
GBP/USD: Sterling hovered above $1.33 on Monday as traders clung to hopes that Britain and the European Union would soon seal a long-awaited Brexit trade deal, even as the clock ticked down on the Brexit transition period. On Monday, the British currency rose to as high as $1.3355 before falling back to trade at $1.3316, unchanged on the session. Immediate resistance can be seen at 1.3365(Daily high), an upside break can trigger rise towards 1.3409 (23.6%fib).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3269 (14DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday, as demand for riskier assets decreased as the global equities rally that has seen risk appetite surge in November paused for breath. On the last day of the month, the dollar was set for its biggest monthly loss against a basket of currencies since July, having wiped 2.5% off its value in November. At 1217 GMT it was at 91.625, down 0.1% on the day. Immediate resistance can be seen at 0.9789 (Higher BB), an upside break can trigger rise towards 0.9800 (Psychological level).On the downside, immediate support is seen at 0.9021 (23.6%fib), a break below could take the pair towards 0.8996 (Lower BB).
USD/JPY: The dollar edged lower against the Japanese yen on Monday, as a combination of vaccine optimism and bets on more monetary easing in the United States drove investors out of the world's reserve currency. The dollar index has dropped about 2.5% in November as promising trial results for major vaccine candidates excited investors about an eventual end to the coronavirus pandemic. Strong resistance can be seen at 104.11 (38.2%fib), an upside break can trigger rise towards 104.38 (Higher BB).On the downside, immediate support is seen at 103.85 (23.6%fib), a break below could take the pair towards 103.00(Psychological level).
Equities Recap
Europe’s benchmark stock index was flat on Monday with focus on Brexit negotiations, but was still on track for its best month on record on the prospect of easing coronavirus restrictions and hopes for a COVID-19 vaccine.
At (GMT 12:50),UK's benchmark FTSE 100 was last trading slightly higherat 0.01 percent, Germany's Dax was up by 0.54 percent, France’s CAC finished was down by 0.29 percent.
Commodities Recap
Gold prices extended their slide to five month lows on Monday as prospects of a vaccine-led boost to the economy cast a shadow over safe-haven assets and set bullion on course for its worst month in four years.
Spot gold fell 0.8% to $1,774.01 per ounce by 1029 GMT, shedding 5.6% so far this month. The metal also hit its lowest level since July 2 at $1,764.29 earlier in the session.U.S. gold futures dropped 0.6% to $1,771.20 per ounce.
Oil prices tumbled on Monday on uncertainty about whether OPEC+ would agree to extend large output cuts at talks this week, but vaccine hopes still kept benchmark crudes on track to rise more than a fifth in November.
Brent crude for January delivery, a contract that expires on Monday, dropped 69 cents, or 1.4%, to $47.49 a barrel by 1220 GMT. The more actively traded February Brent contract was down 65 cents at $47.60.U.S. West Texas Intermediate crude for January fell 53 cents, or 1.2%, to $45.00 a barrel.