Market Roundup
•US Redbook (YoY) 2.8%,1.7% previous
•US Redbook (MoM) -0.5%, -1.0% previous
•Belgium NBB Business Climate -12.1, -8.5 previous
•US Sep S&P/CS HPI Composite - 20 s.a. (MoM) 1.3%,0.7% forecast, 0.5% previous
•US S&P/CS HPI Composite - 20 n.s.a. (YoY) 6.6%,5.1% forecast, 5.2% previous
•US Sep S&P/CS HPI Composite - 20 n.s.a. (MoM) 1.2%,0.5% forecast, 1.1% previous
•US Sep House Price Index 302.6, 297.7 previous
•US Sep House Price Index (MoM) 1.7%, 1.5% previous
•US Sep House Price Index (YoY) 9.1%, 8.0% previous
•US Nov CB Consumer Confidence 96.1 ,98.0 forecast, 100.9 previous
•US Nov Richmond Services Index 13, 19 previous
•US Nov Richmond Manufacturing Shipments 20, 30 previous
•US Richmond Manufacturing Index 15 ,29 previous
Looking Ahead Economic Data
•23:50 Japan Corporate Services Price Index (CSPI) (YoY) 1.3% previous
•00:30 Australia Construction Work Done (QoQ) (Q3) -2.0% forecast,-0.7% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro gained on Tuesday after U.S. President Donald Trump accepted the start of a transition to a Biden regime, that may include former Federal Reserve Chair Janet Yellen as Treasury secretary. Trump gave the head of the General Services Administration the go-ahead to proceed with a transition to a government led by President-elect Joe Biden despite plans to continue with legal challenges. Democratic allies to the Biden campaign said Yellen is expected to be nominated to become Treasury Secretary, heartening investors as she has called for increased government spending to lift the economy out of a coronavirus induced recession. Immediate resistance can be seen at 1.1908 (23.6%fib), an upside break can trigger rise towards 1.1920 (Nov 9th high).On the downside, immediate support is seen at 1.1847 (50%fib), a break below could take the pair towards 1.1819 (61.8% fib).
GBP/USD: Sterling strengthened against dollar on Tuesday as optimism that this week's Brexit negotiations will result in a deal. The November flash purchasing managers index came in better than expected on Monday, adding to the optimism, although the number remained below 50, which represents contraction. The British pound was last up 0.4% at $1.3322, close to $1.3396, its highest since Sept. 2, reached on Monday. If it were to rise above $1.3481, the surge would propel it to nearly a one-year high. Immediate resistance can be seen at 1.3398 (23.6%fib), an upside break can trigger rise towards 1.3487 (Aug 24th high).On the downside, immediate support is seen at 1.3310 (38.2%fib), a break below could take the pair towards 1.3264 (23rd Nov low).
USD/CAD: The Canadian dollar strengthened to a two-week high against the greenback on Tuesday, as news that U.S. President-elect Joe Biden got the formal go-ahead to begin his White House transition lifted investor sentiment. U.S. crude oil futures settled 4.3% higher at $44.91 a barrel.On the data front, Canadian manufacturing sales in October most likely rose by 0.6% on higher sales of petroleum and other resources, following a 1.5% gain in September, Statistics Canada said in a flash estimate. The Canadian dollar was trading 0.6% higher at 1.3003 to the greenback. Immediate resistance can be seen at 1.3023(23.6%fib), an upside break can trigger rise towards 1.3110 (50%fib).On the downside, immediate support is seen at 1.2925(223.6%fib), a break below could take the pair towards 1.2880(Lower BB).
USD/JPY: The dollar declined against the Japanese yen Tuesday after U.S. President Donald Trump accepted the transition to a Joe Biden presidency and on optimism that COVID-19 vaccines are close to being rolled out. Trump acknowledged that the head of the General Services Administration should go ahead with a transition to a government led by President-elect Biden, despite plans to continue with legal challenges to election results. The dollar index was last down 0.31% at 92.214, having reached a three-month low of 92.013 on Monday. Strong resistance can be seen at 104.64 (50% fib), an upside break can trigger rise towards 104.97(61.8% fib).On the downside, immediate support is seen at 104.29 (38.2%fib), a break below could take the pair towards 104.06 (5DMA).
Equities Recap
European shares ended higher on Tuesday, as the potential easing of lockdowns in France combined with optimism around the deployment of a coronavirus vaccine as early as the beginning of next year to lift hopes of a swift economic recovery.
UK's benchmark FTSE 100 closed up by 1.55 percent, Germany's Dax ended down by 1.26 percent, France’s CAC finished the day up by 1.21 percent.
U.S. stocks rallied on Tuesday and the Dow breached the 30,000 level for the first time, as investors anticipated a 2021 economic recovery on coronavirus vaccine progress and the formal clearance for President-elect Joe Biden’s transition to the White House.
Dow Jones closed up by 1.54% percent, S&P 500 closed up by 1.62% percent, Nasdaq settled up by 1.31% percent.
Treasuries Recap
U.S. Treasury yields on the longer end of the curve rose on Tuesday as investors rushed to riskier investments, including soaring stocks.
The benchmark 10-year yield, which hit a session high of 0.888%, was last up 2.4 basis points at 0.8832% and the yield curve steepened. The yield on 30-year bonds was last up 4.4 basis points at 1.6072%.
Commodities Recap
Gold fell to a four-month low on Tuesday and looked set to dip below the $1,800 psychological level as progress on COVID-19 vaccines and hopes for a quick transition in the White House drove investors towards riskier assets.
Spot gold dropped 1.7% to $1,804.81 an ounce by 11:40 a.m. EST (1640 GMT), after touching its lowest since July 17 at $1,800.01.U.S. gold futures shed 1.9% to $1,802.40.
Oil rose about 4% on Tuesday to touch highs not seen since March as a third promising coronavirus vaccine raised hope for fuel- demand recovery and U.S. President-elect Joe Biden began his transition to the White House.
Brent crude settled at $47.86 a barrel, gaining $1.80, or 3.9%. U.S. West Texas Intermediate crude settled at $44.91 a barrel, rising $1.85 or 4.3%.
