Market Roundup
• US ADP Employment Change Weekly 4.75K, -13.50K previous
• US Redbook (YoY) 5.7%, 7.6% previous
• US JOLTS Job Openings (Sep) 7.658M, 7.200M forecast,7.227M previous
• US Leading Index (MoM) (Sep) -0.3% -0.3% forecast,-0.3% previous
• US JOLTS Job Openings (Oct) 7.670M ,7.658M previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan PPI (YoY) (Nov) 2.7% forecast,2.7% previous
• 23:50 Japan PPI (MoM) (Nov) 0.3% forecast, 0.4% previous
•01:30 China CPI (MoM) (Nov) 0.3% forecast, 0.2% previous
•01:30 China CPI (YoY) (Nov) 0.7% forecast,0.2% previous
•01:30 China PPI (YoY) (Nov) -2.0% forecast,-2.1% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro slipped against the dollar on Tuesday as investors focused on the upcoming Federal Reserve meeting. The Fed is widely expected to cut interest rates on Wednesday, though market participants anticipate divisions among policymakers. Meanwhile, the Bank of Canada and Swiss National Bank are both expected to keep rates unchanged when they meet on Wednesday and Thursday, respectively. On Monday, ECB board member Isabel Schnabel noted that the next move in euro interest rates is more likely to be higher, even if not imminent, warning that holding rates steady for too long could effectively lead to passive monetary easing. Immediate resistance can be seen at 1.1674(Daily high), an upside break can trigger rise towards 1.1692(Higher BB).On the downside, immediate support is seen at 1.1595(SMA20), a break below could take the pair towards 1.1570(38.2%fib).
GBP/USD: Sterling was steady against the dollar on Tuesday as traders readied for an interest rate cut from the U.S. Federal Reserve and October GDP data for a steer on the UK economy. Also supporting sterling is finance minister Rachel Reeves' more positive than expected budget. The currency has added 1.2% since Reeves delivered the budget on November 26 and climbed to six-week highs last week.Surveys released on Tuesday showed British consumers kept a tight rein on spending in November as they awaited the budget while retailers said that Black Friday sales disappointed. Markets are placing a roughly 86% chance of the Bank of England cutting interest rates by a quarter of a point to 3.75% at its next meeting on December 19 .Traders are also awaiting UK GDP figures for October, which are due on Friday.Immediate resistance can be seen at 1.3364(Higher BB), an upside break can trigger rise towards 1.3427(61.8%fib).On the downside, immediate support is seen at 1.3295(50%fib), a break below could take the pair towards 1.3182(SMA 20).
USD/CAD: The Canadian dollar held steady against the U.S. dollar on Tuesday as oil prices declined and investors awaited the Bank of Canada’s upcoming interest rate decision. The central bank is widely expected to keep rates on hold on Wednesday, following its October cut of the benchmark rate to a three-year low of 2.25%. Market participants are anticipating a possible shift toward rate hikes in 2026, supported by recent data showing stronger-than-expected job growth. Meanwhile, the price of oil , one of Canada’s key exports, fell 1.2% to $58.17 a barrel as investors monitored developments in the Russia-Ukraine peace talks. The loonie was trading nearly unchanged at 1.3850 per U.S. dollar, or 72.20 U.S. cents, after trading in a range of 1.3824 to 1.3860. Immediate resistance can be seen at 1.3907 (38.2%fib), an upside break can trigger rise towards 1.4000 (Psychological level).On the downside, immediate support is seen at 1.3824(38.2%fib), a break below could take the pair towards 1.3775 (Lower BB).
USD/JPY: The dollar strengthened against the yen on Tuesday as markets positioned ahead of the Federal Reserve’s anticipated rate cut. The Fed began its two-day policy meeting with traders widely expecting a 25-basis-point reduction, despite inflation remaining above the central bank’s 2% target. Policymakers have offered mixed signals, with some warning that price pressures could reaccelerate, while others expressed concern over the labor market’s health. On the data front, Tuesday’s Labor Department report provided little clarity, showing a slight increase in job openings in October, but subdued hiring. Traders are still pricing in a roughly 87% chance of a 25-basis-point rate cut on Wednesday, according to CME's FedWatch Tool. Immediate resistance can be seen at 157.50(23.6%fib) an upside break can trigger rise towards 158.00 (Psychological level) .On the downside, immediate support is seen at 156.04 (SMA 20) a break below could take the pair towards 155.51 (38.2%fib)
Equities Recap
European shares closed largely flat on Tuesday as investors remained cautious ahead of the U.S. Federal Reserve’s two-day policy meeting. Meanwhile, EssilorLuxottica shares fell after Google announced plans to launch AI-powered glasses.
UK's benchmark FTSE 100 closed down by 0.03 percent, Germany's Dax ended up by 0.49 percent, France’s CAC finished the day down by 0.69 percent.
The S&P 500 ended slightly lower on Tuesday as investors focused on the upcoming Federal Reserve meeting and assessed news that Washington will allow Nvidia’s second-tier chips to be exported to China.
Dow Jones closed down by 0.37 % percent, S&P 500 closed down by 0.09 % percent, Nasdaq settled up by 0.13% percent.
Commodities Recap
Gold climbed on Tuesday as traders stayed optimistic ahead of the U.S. Federal Reserve’s interest rate decision, while silver surged to a record $60 per ounce amid supply shortages.
Spot gold rose 0.6% to $4,211.77 per ounce by 03:21 p.m. ET (2021 GMT). U.S. gold futures for February delivery settled 0.4% higher at $4,236.2 per ounce.
Oil prices slipped on Tuesday following a 2% drop in the previous session, as investors monitored Ukraine peace talks, ample supply concerns, and the upcoming U.S. interest rate decision.
Brent crude futures settled down 55 cents, or 0.88%, at $61.94 a barrel. U.S. West Texas Intermediate crude fell 63 cents, or 1.07%, to $58.25 a barrel.
