Market Roundup
• Brazil Net Debt-to-GDP ratio (Sep) 62.4%, 62.0% previous
• Brazil Budget Balance (Sep) -53.767B ,-66.800B forecast, -90.381B previous
• Brazil Budget Surplus (Sep) -7.340B,-21.425B previous
• Brazil Gross Debt-to-GDP ratio (MoM) (Sep) 78.3%, 78.9% forecast, 78.5% previous
Looking Ahead Economic Data (GMT)
•00:30 Australia NAB Business Confidence (Oct) -2 previous
• 00:30 Australia NAB Business Survey (Oct) 7 previous
•05:30 Japan Machine Tool Orders (YoY) -6.5% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dropped to its lowest level in 6-1/2 months against the greenback on Monday as investors worried about possible U.S. tariffs that would hurt the euro area's economy. The euro's sensitivity to the potential for higher U.S. import tariffs was evident late Friday when reports emerged that President-elect Donald Trump was selecting Robert Lighthizer, a known trade hardliner, to lead his trade policy. The euro's sensitivity to the potential for higher U.S. import tariffs was evident late Friday when reports emerged that President-elect Donald Trump was selecting Robert Lighthizer, a known trade hardliner, to lead his trade policy. The single currency was down 0.6% at $1.0657, after hitting $1.0656, its lowest level since May 1 .Immediate resistance can be seen at 1.0732(Daily high), an upside break can trigger rise towards 1.0761(38.2%fib).On the downside, immediate support is seen at 1.0638`(23.6%fib), a break below could take the pair towards 1.0600(Psychological level)
GBP/USD: Sterling fell on Monday as markets prepared for key U.S. inflation data and a series of speeches from Federal Reserve officials this week. Among them, Fed Chair Jerome Powell will speak on Thursday, providing important insights into the outlook for interest rates. U.S. consumer price data, also due Thursday, will be closely watched; a core reading above the 0.3% forecast could further diminish expectations for a rate cut in December. Meanwhile, a batch of significant economic data for the UK is set to be released, including Q3 GDP growth, unemployment figures, and wage growth data. The dollar index was 0.3% firmer at 105.32. Last week, it jumped more than 1.5% to 105.44, its highest since early July. Immediate resistance can be seen at 1.2983(38.2%fib), an upside break can trigger rise towards 1.3062 (50%fib).On the downside, immediate support is seen at 1.2876 (23.6%fib), a break below could take the pair towards 1.2850 (Lower BB).
USD/CAD: The Canadian dollar weakened slightly against its U.S. counterpart on Monday as oil prices tumbled and investors weighed prospects of U.S. trade tariffs that could hurt Canada's economy. U.S. President-elect Donald Trump has proposed sweeping tariffs on imported goods. Canada sends about 75% of its exports to the United States, including oil. The price of oil fell 3.1% to $68.21 a barrel after China's stimulus plan disappointed investors and as the U.S. dollar added to recent gains against a basket of major currencies. The loonie was trading 0.1% lower at 1.3915 to the U.S. dollar, after clawing back some of its earlier decline. Immediate resistance can be seen at 1.3952 (23.6%fib), an upside break can trigger rise towards 1.4000 (Psychological level).On the downside, immediate support is seen at 1.3879(5 SMA), a break below could take the pair towards 1.3865 (38.2%fib).
USD/JPY: The dollar gained against the yen on Monday after the Bank of Japan’s summary of its October policy meeting revealed differing opinions among policymakers. Some members expressed caution about raising interest rates too soon, citing concerns over potential market volatility following the U.S. presidential election. The summary, released Monday, showed that many BOJ board members emphasized the importance of monitoring the economic impact of market fluctuations, which were a key focus during last month’s policy review, held just days before the November 5 election. This suggests that movements in the yen will continue to play a critical role in the central bank's decision-making on future rate hikes. Immediate resistance can be seen at 154.19(23.6 %fib) an upside break can trigger rise towards 155.08(Higher BB). On the downside, immediate support is seen at 152.21(Nov 8th low) a break below could take the pair towards 151.32(38.2%fib).
Equities Recap
Europe's main stock index logged its best day in six weeks on Monday, with defence stocks in the lead on prospects of higher military spending in Europe under a Donald Trump U.S. presidency, with investors also awaiting key economic data this week.
UK's benchmark FTSE 100 closed up by 0.65 percent, Germany's Dax ended up by 1.21 percent, France’s CAC finished the day up by 1.20 percent.
Wall Street traders on Monday kicked off a busy week by extending last week's stock rally, while oil prices declined and bitcoin raced to a new record high.
Dow Jones closed up by 0.69% percent, S&P 500 closed up by 0.10 % percent, Nasdaq settled up by 0.09% percent.
Commodities Recap
Gold prices slipped more than 2% on Monday, weighed down by the greenback's continued rise and broader implications of Donald Trump's victory in the U.S. presidential election on fiscal policy and interest rate cuts.
Spot gold fell 2.5% to $2,617.96 per ounce, as of 1:54 p.m. ET (1854 GMT). U.S. gold futures settled 2.9% lower at $2,617.70.
Oil prices fell by more than 2% on Monday after China's latest stimulus plan disappointed investors seeking demand growth in the world's second-biggest oil consumer, while supply looked set to rise in 2025.
Brent crude futures settled at $71.83 a barrel, down$2.04 or 2.76%. U.S. West Texas Intermediate crude futures finished at $68.04 a barrel, down $2.34, or 3.32%.
