Market Roundup
• French 12-Month BTF Auction 2.382%, 2.507% previous
•French 3-Month BTF Auction 2.824%, 2.937% previous
•French 6-Month BTF Auction 2.613%, 2.724% previous
•Belgium NBB Business Climate (Nov) -11.1, -12.7 forecast, -12.8 previous
•US Dallas Fed Mfg Business Index (Nov) -2.7, -2.4 forecast, -3.0 previous
Looking Ahead Economic Data (GMT)
• 05:00 Japan BoJ Core CPI (YoY) 1.8%, 1.7% previous
Looking Ahead Events And Other Release(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: the euro initially gained but gave up ground on Monday as market digested news of selection of Scott Bessent as U.S. Treasury Secretary. The appointment raised expectations of a more restrained approach to tariffs, helping to reduce U.S.-China trade tensions. The broad selloff eased some pressure on the euro, which has fallen sharply this month on worries over Trump tariffs, deteriorating economic conditions and signs of an escalation between Russia and Ukraine.The contrast saw European bond yields fall sharply, widening the gap with Treasury yields to the benefit of the dollar. Minutes of the Fed's last meeting are due on Tuesday and will offer more colour on the decision to cut by 50 basis points and the discussion for future easing.Also due this week are figures on U.S. and EU inflation, which will further refine the outlook for rates. Immediate resistance can be seen at 1.0463(38.2%fib), an upside break can trigger rise towards 1.0520(50%fib).On the downside, immediate support is seen at 1.0400`(23.6%fib), a break below could take the pair towards 1.0326(Daily low)
GBP/USD: The pound recovered from a three-day losing streak as the dollar weakened following the appointment of fund manager Scott Bessent as U.S. Treasury Secretary, providing a boost to most major currency pairs. The news spurred bets his appointment would reduce the chance of severe tariffs and keep a lid on deficits, pressuring yields which slightly diminished the dollar's rate appeal. With no significant British data set for release this week, attention will shift to U.S. and euro zone inflation reports, along with comments from Bank of England officials. The pound firmed 0.4% to $1.2579 after slumping to a six-month low of $1.2475 on Friday after disappointing British business output and retail sales data raised the prospect of more aggressive interest rate cuts by the Bank of England. Immediate resistance can be seen at 1.2612(38.2%fib), an upside break can trigger rise towards 1.2721(50%fib).On the downside, immediate support is seen at 1.2488 (23.6%fib), a break below could take the pair towards 1.2400(Psychological level)
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Monday as the bond market's enthusiasm about the choice of U.S. Treasury secretary offset a drop in oil prices and caution ahead of comments by a Bank of Canada policymaker. The price of oil , one of Canada's major exports, settled 3.2% lower after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict. Bank of Canada Deputy Governor Rhys Mendes is due to speak on Tuesday on monetary policy, the last scheduled appearance by a BoC policymaker before the Dec. 11 interest rate decision. The loonie was trading nearly unchanged at 1.3978 per U.S. dollar, or 71.54 U.S. cents, after moving in a range of 1.3928 to 1.4007. Last week, the currency rallied 0.8%, its biggest weekly gain since August. .Immediate resistance can be seen at 1.4073 (23.6%fib), an upside break can trigger rise towards 1.4132(Higher BB).On the downside, immediate support is seen at 1.3952(38.2%fib), a break below could take the pair towards 1.3871(50%fib).
USD/JPY: The dollar steadied against the yen on Monday as investors welcomed the incoming U.S. president's selection of fund manager Scott Bessent as the next U.S. Treasury secretary.. Ahead of the Thanksgiving holiday week, President-elect Donald Trump ended intense speculation over the Treasury pick late on Friday and put Bessent forward for the job.While in favor of extending 2017's tax cuts, more tax reform and deregulation, Bessent has been vocal about fiscal control, sees tariff threats mostly as a negotiating tool and supports the dollar's dominant reserve currency status. The index was last down 0.47% at 106.98, having hit a two-year peak of 108.090 on Friday. The dollar dipped 0.30% on the Japanese yen to 154.26 , and further away from its recent peak of 156.76.Immediate resistance can be seen at 155.28(38.2%fib) an upside break can trigger rise towards 156.00(Psychological level). On the downside, immediate support is seen at 153.98(50%fib) a break below could take the pair towards 153.63(21SMA).
Equities Recap
Europe's main stock index slipped back from a two-week high as gains were limited by a slump in energy stocks, while market sentiment remained optimistic following the nomination of the new U.S. Treasury Secretary and encouraging remarks from the ECB's chief economist regarding monetary policy easing.
UK's benchmark FTSE 100 closed up by 0.36 percent, Germany's Dax ended up by 0.43percent, France’s CAC finished the day up by 0.03 percent.
Wall Street's main indexes ended higher on Monday, with the small-cap Russell 2000 index hitting an all-time high after Scott Bessent's nomination as U.S. Treasury secretary helped push bond yields lower..
Dow Jones closed up by 0.99% percent, S&P 500 closed up by 0.30 % percent, Nasdaq settled up by 0.27% percent.
Commodities Recap
Oil prices fell more than $2 a barrel on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict, citing unnamed senior U.S. officials.
Brent crude futures settled at $73.01 a barrel, down $2.16, or 2.87%. U.S. West Texas Intermediate crude futures finished at $68.94 a barrel, down $2.30 or 3.23%.
Gold prices plunged over 3% on Monday, breaking a five-session rally to its highest in nearly three weeks, as reports of Israel nearing a ceasefire with Hezbollah, coupled with Trump's nomination of Scott Bessent as the U.S. Treasury Secretary soured the precious metal's safe-haven appeal.
Spot gold fell 3.4% to $2,619.66 per ounce by 02:01 p.m. ET (1901 GMT), its biggest daily percentage decline since Jun.07. U.S. gold futures settled 3.5% lower to $2618.50.
