Market Roundup
• Finnish Oct CPI (YoY) 3.2%, 2.5% previous
•Sweden Oct CPI (YoY) 2.8, 2.7% forecast, 2.5% previous
•Sweden Oct CPI (MoM) 0.6% forecast,0.5% previous
•EU Sep Trade Balance 7.3B,6.5B forecast, 4.8B previous
Looking Ahead Economic Data (GMT)
•13:30 Canada New Motor Vehicle Sales (MoM) 150.0% previous
•US NY Nov Empire State Manufacturing Index 21.60 forecast, 19.80 previous
•US Sep Manufacturing Sales (MoM) -3.2% forecast, 0.5% previous
•US Sep Wholesale Sales (MoM) 1.1%,0.3% previous
• 14:00 French 12-Month BTF Auction -0.675% previous
• 14:00 French 3-Month BTF Auction -0.782% previous
•14:00 French 6-Month BTF Auction -0.711% previous
•16:30 US 6-Month Bill Auction 0.065% previous
•16:30 US 6-Month Bill Auction 0.045% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro was little cahnged on Monday as traders awaited fresh clues on the U.S. economy after bringing forward bets last week for a Federal Reserve interest rate hike on the back of red-hot inflation. The main event on the U.S. economic calendar this week will be Tuesday's retail sales data, particularly after a survey on Friday showed consumer confidence unexpectedly plunged to a decade low in early November as high inflation hit sentiment. The euro added 0.13% to $1.1457, but still within sight of Friday's 16-month low of $1.1433. Immediate resistance can be seen at 1.1482 (5DMA), an upside break can trigger rise towards 1.1501 (38.2%fib).On the downside, immediate support is seen at 1.1436 (23.6 % fib), a break below could take the pair towards 1.1400(Psychological level).
GBP/USD: The pound was steady in early trading on Monday, lagging behind other risk-related currencies, as investors focused on talks over post-Brexit trade arrangements for Northern Ireland, ahead of market data later in the week. Relations between Brussels and London have deteriorated in recent weeks after Britain, unhappy with the Brexit deal it signed up to in 2020, threatened to trigger an emergency clause known as Article 16 of the Northern Ireland Protocol, potentially leading to a trade war. In the week ahead, markets will be focused on the UK jobs report on Tuesday and CPI data on Wednesday. Surprisingly high U.S. inflation data boosted the dollar to 16-month highs last week, prompting traders to raise their bets on a U.S. rate hike as early as mid-2022. Immediate resistance can be seen at 1.3440(38.2% fib), an upside break can trigger rise towards 1.3500 (50%fib).On the downside, immediate support is seen at 1.3363 (23.6%fib), a break below could take the pair towards 1.3332(Lower BB).
USD/CHF: The dollar dipped against the Swiss franc on Monday as investors assessed the Federal Reserve’s possible response to high inflation expectations. Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday he expected higher inflation over the next few months, but warned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary. Immediate resistance can be seen at 0.9236 (50 % fib), an upside break can trigger rise towards 0.9242 (Higher BB).On the downside, immediate support is seen at 0.9200 (38.2%fib), a break below could take the pair towards 0.9182(5DMA ).
USD/JPY: The dollar edged lower against the Japanese yen on Monday as investors awaited fresh clues on U.S. monetary policy. Investors will also be watching any comments coming out of a virtual summit between Chinese leader Xi Jinping and U.S. President Joe Biden. The dollar eased as traders await fresh clues on the U.S. economy after soaring inflation numbers led investors to pull forward their Federal Reserve rate hike bets. The dollar slipped 0.07% to 113.825 yen, consolidating around 114 since Wednesday. Strong resistance can be seen at 107.90 (38.2% fib), an upside break can trigger rise towards 108.53 (Higher BB).On the downside, immediate support is seen at 107.25 (21 DMA), a break below could take the pair towards 106.91 (61.8% fib).
Equities Recap
European shares hit another record peak on Monday as Royal Dutch Shell led energy stocks higher after saying it would end its dual-share system, while some upbeat Chinese data also buoyed sentiment.
At (GMT 11:00 ),UK's benchmark FTSE 100 was last trading down at 0.09 percent, Germany's Dax was up by 0.14 percent, France’s CAC finished was up by 0.44 percent.
Commodities Recap
Gold prices eased on Monday, as investors assessed the Federal Reserve’s possible response to high inflation expectations, but a pullback in U.S. bond yields capped losses.
Spot gold fell 0.1% to $1,862.51 per ounce by 1052 GMT, while U.S. gold futures dipped 0.2% to $1,865.00.
Crude oil prices fell on Monday on expectations of increasing supply, while higher energy costs and rising COVID-19 cases are also seen weighing on demand.
Brent crude futures fell 96 cents, or 1.2%, to $81.21 a barrel, as of 1036 GMT. U.S. West Texas Intermediate (WTI) crude lost 73 cents, or 0.9%, to $80.06 a barrel.
