Market Roundup
•Canada Housing Starts (Oct): 240.8K, forecast 239.0K, 223.4K previous
•Canada Foreign Securities Purchases (Sep): 29.30B, forecast 10.50B, previous 10.33B
•Canada - Foreign Securities Purchases by Canadians (Sep): 4.14B, previous 12.25B
• French 12-Month BTF Auction: 2.507%, 2.515% previous
•French 3-Month BTF Auction: 2.937%, 2.989% previous
• French 6-Month BTF Auction: 2.724%, 2.806% previous
•US NAHB Housing Market Index (Nov): 46, forecast 42, 43 previous
• US 3-Month Bill Auction: 4.420%, 4.420% previous
• US - 6-Month Bill Auction: 4.310%, 4.310% previous
Looking Ahead Economic Data(GMT)
•No economic data
Looking Ahead Events And Other releases (GMT)
• 00:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro strengthened against dollar on Monday as U.S. dollar fell as traders pared expectations of future interest-rate cuts by the Federal Reserve . Investors continue to weigh up the outlook for U.S. interest rates in light of Fed Chair Jerome Powell's remarks last Thursday that the central bank is in no rush to raise them, and last week's relatively strong U.S. economic data.The U.S. central bank is widely expected to deliver a third rate cut in December, although recent data showed progress in bringing inflation back to its 2% target has stalled. At least seven Fed officials are scheduled to speak this week. The euro stood at $1.0547.Immediate resistance can be seen at 1.0611(38.2%fib), an upside break can trigger rise towards 1.0671(50%fib).On the downside, immediate support is seen at 1.0538`(23.6%fib), a break below could take the pair towards 1.0521(Lower BB)
GBP/USD: Sterling rebounded on Monday as caution prevailed ahead of UK inflation report due later in the week. The Bank of England should keep interest rates on hold until upside risks to inflation - including those posed by the election of Donald Trump as the United States' next president - dissipate, a top BoE official said on Thursday.Mann said the risk of global shocks should be incorporated into the monetary policy decision-making process, and that economic volatility in general tended to create higher inflation and require higher interest rates to tackle it. Sterling was last up 0.1% at $1.2627, from $1.2598 on Friday, its lowest since mid-May. Traders see a roughly 80% chance the Bank of England will cut rates again next month, and see rates falling by around 65 basis points to just above 4% by the end of next year. The BoE rate is currently 4.75%. Immediate resistance can be seen at 1.2683(SMA 5), an upside break can trigger rise towards 1.2723(38.2%fib).On the downside, immediate support is seen at 1.2592 (23.6%fib), a break below could take the pair towards 1.2515(My 14th low)
USD/CAD: The Canadian dollar strengthened on Monday as higher commodities prices and weaker dollar boosted Canadian dollar. Oil prices rose following reports that output at Norway's Johan Sverdrup oilfield has halted.Gold prices rose sharply on Monday as investors looked for a safe haven to park money after the Russia-Ukraine war escalated. The stalled U.S. dollar, which has been rising for the past few weeks, added to the bullion demand. Canada will release consumer-price data on Tuesday and economists expect the numbers could help determine the size of the expected rate cut by the Bank of Canada next month. The loonie was trading 0.5% higher at C$1.4018 to the greenback, after trading in a range of 1.4005 to 1.4102. Immediate resistance can be seen at 1.4100(23.6%fib), an upside break can trigger rise towards 1.4111(Higher BB).On the downside, immediate support is seen at 1.4019(38.2%fib), a break below could take the pair towards 1.3949 (50%fib).
USD/JPY: The dollar strengthened against the yen on Monday after Japan's top central banker flagged further policy tightening ahead but left open the question of timing, leaving the market no clearer on whether a move would come next month. Bank of Japan Governor Kazuo Ueda reiterated on Monday the central bank will keep raising rates if economic and price developments move in line with its forecasts, but made no mention of whether a hike could come in December.However, he later said in a press conference that keeping inflation-adjusted real interest rates low for too long could cause excessive inflation and force the BOJ into hiking interest rates rapidly.Ueda's comments were closely watched by investors for clues on the BOJ's next rate hike. The greenback strengthened 0.36% against the Japanese yen to 154.9. Immediate resistance can be seen at 155.20(Daily high) an upside break can trigger rise towards 156.46(23.6%fib). On the downside, immediate support is seen at 153.70(Daily low) a break below could take the pair towards 153.50(SMA 21).
Equities Recap
European shares kicked off the week on a dour note, weighed down by declines in real estate stocks, while investors studied speeches from European Central Bank policymakers to assess the future direction of interest rates.
UK's benchmark FTSE 100 closed up by 0.57 percent, Germany's Dax ended down by 0.11 percent, France’s CAC finished the day up by 0.12percent.
The Nasdaq and S&P 500 closed higher on Monday, recovering some losses as investors anticipate quarterly earnings from AI leader Nvidia , and Tesla jumped on the prospect of favorable policy changes from the incoming Trump administration.
Dow Jones closed down by 0.13% percent, S&P 500 closed up by 0.39 % percent, Nasdaq settled up by 0.60% percent.
Commodities Recap
Gold prices soared on Monday, after six days of losses, as the U.S. dollar's surge stalled and heightened uncertainty over the Russia-Ukraine conflict rekindled safe-haven demand.
Spot gold jumped 1.8% to $2,608.19 per ounce by 01:44 p.m. ET (1844 GMT), moving away from a two-month low on Thursday. U.S. gold futures settled 1.7% up at $2,614.60.
Oil prices climbed more than $2 a barrel on Monday after news that crude production at Norway's Johan Sverdrup oilfield had been halted, which added to earlier gains stemming from escalation of the Russia-Ukraine war.
Brent crude futures settled at $73.30 a barrel, gaining $2.26, or 3.2%. U.S. West Texas Intermediate crude futures settled at $69.16 a barrel, rising $2.14, or 3.2%.
