Market Roundup
• Canada RMPI (YoY) (Nov) 6.4%, 5.8% previous
•Canada IPPI (MoM) (Nov) 0.9%, 0.3% forecast, 1.7% previous
•Canada IPPI (YoY) (Nov) 6.1%, 5.7% previous
•US Chicago Fed National Activity (Sep) -0.21, -0.31 previous
Looking Ahead Economic Data (GMT)
•02:00 New Zealand M3 Money Supply (Nov) 442.3B previous
Looking Ahead Events And Other Releases (GMT)
• 00:30 RBA Meeting Minutes
Currency Summaries
EUR/USD : The euro rose on Friday as the dollar weakened ahead of this week’s key U.S data release ahead of Christmas holiday. The preliminary reading of third-quarter GDP, December consumer confidence data, and weekly jobless claims, are scheduled for release this week, offering insights about the health of the U.S. economy as well as hints about the monetary policy path. Financial markets are likely to remain subdued as traders book profits ahead of the long holiday period. The euro rose 0.4% against the dollar , advancing after four straight days of weakness last week. The European Central Bank left euro zone rates unchanged and effectively closed the door on rate cuts any time soon.The decision had been widely expected, however, and ECB President Christine Lagarde has said numerous times the central bank is "in a good place" on monetary policy. Immediate resistance can be seen at 1.1766(Daily high), an upside break can trigger rise towards 1.1795(23.6%fib).On the downside, immediate support is seen at 1.1705(Daily low), a break below could take the pair towards 1.1649(50%fib).
GBP/USD: The pound extended gains on Monday as sterling was supported by in line with expectation UK GDP data. British households saved less in the July-to-September period of this year as they felt the hit from higher taxes but still increased their spending, according to official data which confirmed a slowdown in the broader economy.Gross domestic product grew by only 0.1%, the Office for National Statistics said, in line with its initial estimate .Growth in the April-to-June period was revised down to 0.2% from a previous estimate of 0.3%. Last week the Bank of England said it expected zero GDP growth in the October-to-December period but it thought that the underlying pace of economic growth was around 0.2% per quarter.Immediate resistance can be seen at 1.3485(38.2%fib), an upside break can trigger rise towards 1.3525 (Higher BB).On the downside, immediate support is seen at 1.3340(50%fib), a break below could take the pair towards 1.3334(SMA 20).
USD/CAD: The Canadian dollar gained ground against the U.S. dollar on Monday, supported by a rise in oil prices and anticipation of key economic data. Market attention is now focused on Tuesday’s release of October GDP, which is expected to shed light on the recent pace of economic activity. Analysts forecast a 0.2% contraction in GDP, signaling continued weakness amid trade uncertainties.Oil, a major Canadian export, climbed 2.3% to $57.82 a barrel following reports that the U.S. Coast Guard pursued a tanker in international waters near Venezuela. Tensions were further heightened after Ukraine damaged Russian vessels and piers, fueling concerns about potential supply disruptions and boosting the commodity-linked Canadian dollar. The loonie was trading 0.4% higher at 1.3740 per U.S. dollar , after moving in a range of 1.3737 to 1.3804. Last Tuesday, the currency touched a near three-month high at 1.3728. Immediate resistance can be seen at 1.3805 (Daily high), an upside break can trigger rise towards 1.3840(38.2%fib).On the downside, immediate support is seen at 1.3729(23.6%fib), a break below could take the pair towards 1.3655(Lower BB).
USD/JPY: The U.S. dollar eased from a one-month high as yen firmed after Japanese officials warned against "one-sided and sharp" currency moves, signaling readiness to take appropriate action in what analysts viewed as a clear hint of intervention. Atsushi Mimura said authorities would take “appropriate” action against excessive FX moves, keeping intervention risks alive after last week’s central bank meeting triggered renewed yen weakness. His comments echoed Finance Minister Satsuki Katayama’s warning over speculative yen moves amid rising import costs and household expenses. The yen has fallen in recent sessions against the dollar despite the Bank of Japan raising interest rates to 0.75% from 0.5% last Friday, taking borrowing costs to a level unseen in 30 years. It is poised to end December lower, for a fourth consecutive month. Immediate resistance can be seen at 157.80(23.6%fib) an upside break can trigger rise towards 158.00(Psychological level) .On the downside, immediate support is seen at 155.91 (SMA 20) a break below could take the pair towards 155.61 (38.2%fib).
Equities Recap
European shares remained largely flat on Monday, dragged down by beverage stocks, as investors entered a holiday-shortened week following a record close in the prior session.
UK's benchmark FTSE 100 closed down by 0.32 percent, Germany's Dax ended down by 0.02 percent, France’s CAC finished the day down by 0.37 percent.
U.S. stocks rose on Monday to start the holiday-shortened week, supported by a rebound in technology shares, with gains seen across nearly all 11 S&P 500 sectors.
Dow Jones closed up by 0.47 % percent, S&P 500 closed up by 0.64 % percent, Nasdaq settled up by 0.52% percent.
Commodities Recap
Gold surged over 2% to a record high on Monday, driven by safe-haven buying amid U.S.-Venezuela tensions, while silver also reached an all-time peak.
Spot gold was up 2.2% at $4,434.26 per ounce by 1:54 p.m. ET (1854 GMT) after hitting an all-time high of $4,441.92 earlier. U.S. gold futures for February delivery settled 1.9% higher at $4,469.40 per ounce.
Oil prices rose on Monday after the U.S. Coast Guard pursued a tanker near Venezuela and Ukraine damaged Russian vessels and piers, raising supply disruption concerns.
Brent crude futures gained $1.60, or 2.7%, to settle at $62.07 a barrel, while U.S. West Texas Intermediate crude futures rose $1.49, or 2.6%, to settle at $58.01 a barrel.
