Market Roundup
• U.S. durable goods data come in weaker than forecast
• U.S. new home sales rebound, lifts yields
• US Nov Chicago Fed National Activity 0.56, -0.76 previous
• US Nov Core Durable Goods Orders (MoM) 0.0%,0.1% forecast, 0.3% previous
• US Nov Durable Goods Orders (MoM) -2.0%,1.5% forecast,0.2% previous
• US Nov Goods Orders Non Defense Ex Air (MoM) 0.1%,0.2% forecast, 1.1% previous
• Canada Oct GDP (Mo) -0.1%,0.1% forecast, 0.1% previous
• US Nov New Home Sales (MoM) 1.3%,-0.3%forecast, -2.7% previous
• US Nov New Home Sales 719K, 734K forecast, 710K previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan Monetary Policy Meeting Minutes
• 05:00 Japan BoJ Core CPI (YoY) 0.3% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events.
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Monday, as single strengthened ahead of the Christmas holiday break, with investors taking profit on selling euro earlier this month. The future path for Euro is likely linked to what kind of benefits non-U.S. currencies reap from the recent easing in trade-related tensions between the United States and China. The euro was at $1.1090, up 0.05% after slipping 0.4% last week. Immediate resistance can be seen at 1.1150 (200 DMA), an upside break can trigger rise towards 1.1200 (Dec 13th high).On the downside, immediate support is seen at 1.1065 (100 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: The British pound declined against dollar on Monday, as sterling was pulled down by holiday-thinned trade by nagging concern over the British government’s hard line on Brexit talks. The pound fell to a low of $1.2938, down 0.6% on the day. It was also 0.6% lower versus the euro at 85.79 pence, hitting its lowest level in over three weeks. Immediate resistance can be seen at 1.3024 (5 DMA), an upside break can trigger rise towards 1.3144 (11 DMA).On the downside, immediate support is seen at 1.2905 (Daily low), a break below could take the pair towards 1.29819 (Nov 27th low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, as U.S. President Donald Trump’s comments that a preliminary trade deal with China would be signed very shortly boosted Canadian dollar. Investors’ spirit was further lifted after China’s finance ministry said on Monday Beijing would lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year. At (21:22 GMT), the Canadian dollar was trading 0.06% higher at 1.3151 to the greenback. The currency traded in a range of 1.3175 to 1.3137. Immediate resistance can be seen at 1.3170 (11 DMA), an upside break can trigger rise towards 1.3213 (21 DMA).On the downside, immediate support is seen at 1.3137 (5 DMA), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Monday, as trading dwindled before the Christmas holiday and investors took profit on gains made this month. Data on Friday showed U.S. growth rose in the third quarter and the economy was probably maintained its expansion as the year ended. Consumer spending was stronger than previously reported, and there were upgrades to business spending. During US hours on Monday, dollar edged lower against yen after reaching daily high at 109.50. Strong resistance can be seen at 109.74 (Dec 3rd high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.19 (11 DMA), a break below could take the pair towards 108.86 (50 DMA).
Equities Recap
European shares dipped slightly on Monday after nearing a record high in the previous session, as investors locked in some of the recent gains in thin trading ahead of the Christmas and Boxing Day holidays later in the week.
UK's benchmark FTSE 100 closed up by 0.54 percent, Germany's Dax ended down by 0.13 percent, France’s CAC finished the day up by 0.13 percent.
The S&P 500 and the Nasdaq hit fresh record highs on Monday as President Donald Trump said an initial U.S.-China trade pact would be signed “very shortly”, while Boeing shares lifted the Dow after the planemaker fired its chief executive officer.
Dow Jones closed up by 0.34 percent, S&P 500 ended up 0.09 percent, Nasdaq finished the day up by 0.23 percent.
Treasuries Recap
U.S. Treasury prices slipped, pushing yields slightly higher, in generally thin trading on Monday as investors sold government debt ahead of a two-year note auction and as market participants squared up positions going into year-end.
The yield on the U.S. 10-year note inched up to 1.922% from 1.917% late on Friday, while U.S. 30-year bond yields were slightly up at 2.347% from 2.346% on Friday
Commodities Recap
Gold prices gained on Monday on sparse trade ahead of the holiday season, with lingering concerns about the health of major global economies supporting demand for safe-haven bullion.
Spot gold rose 0.4% to $1,483.86 per ounce as of 10:43 a.m. ET (1543 GMT). Prices notched $1,485.13 earlier in the session, the highest since Dec. 12.U.S. gold futures gained 0.5% to $1,487.90 per ounce.
Oil prices were little changed on Monday as Russia said an OPEC-led producer group may consider easing output cuts next year, offsetting support from some investor optimism that an initial U.S.-China trade deal would be signed soon.
Brent crude was up 25 cents, or 0.4%, at $66.39 per barrel by 12:08 p.m. ET (1705 GMT) in thin trading ahead of the Christmas holiday. West Texas Intermediate was up 11 cents, or 0.2%, at $60.55 a barrel.
