Market Roundup
•Japan Current Account n.s.a. (Sep) 1.717T, 3.263T forecast, 3.933 previous
•New Zealand Inflation Expectations (QoQ) 2.1%, 2.0% previous
• Finnish Current Account (Sep) 1.10B , 0.70B previous
Looking Ahead Economic Data(GMT)
•14:00 French 12-Month BTF Auction 2.647% previous
•14:00 French 3-Month BTF Auction 3.085% previous
•14:00 French 6-Month BTF Auction 2.892% previous
Looking Ahead Event
•No Events
Currency Forecast
EUR/USD: The euro dipped against dollar on Monday as strong greenback And conscerns about German politics weighed on euro. Politics remained a drag as German Chancellor Olaf Scholz said he would be willing to call a vote of confidence before Christmas, paving the way for snap elections following the collapse of his governing coalition .Germany's governing coalition collapsed on Wednesday after Chancellor Olaf Scholz sacked his finance minister, capping months of wrangling over budget policy and the direction of the economy. The single currency was weaker at $1.0687 , having shed 1% last week to as low as $1.0683 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 1.068`(23.6%fib), a break below could take the pair towards 1.0600(Psychological level)
GBP/USD: Sterling dipped on Monday as markets braced for U.S. inflation data and a throng of Federal Reserve speakers this week. A host of Fed officials are due to speak this week, including Chair Jerome Powell on Thursday, so there will be plenty of guidance on the outlook for rates.Data will also be influential as U.S. consumer prices are due on Thursday and a core reading above the 0.3% forecasted would further reduce the chance of a December easing. Trading was light with U.S. bond markets closed for a public holiday, though stocks and futures are open. The dollar index was a fraction firmer at 105.05, after gaining 0.6% last week. 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).
AUD/USD: The Australian eased against dollar on Monday after stimulus measures from China failed to meet expectations of investors China unveiled a 10 trillion yuan ($1.4 trillion) debt package on Friday to ease local government financing strains and stabilise flagging economic growth, but did not announce any direct stimulus measures into the struggling economy. The package disappointed investors, who were hoping China would announce extra fiscal buffers to pre-empt another round of fractious Sino-U.S. tensions and trade barriers.At GMT 08:20, the pair was trading down 0.35% at 0.6580 retreating from daily high 0.6595. Immediate resistance can be seen at 0.6627(38.2%fib), an upside break can trigger rise towards 0.6682(50%fib).On the downside, immediate support is seen at 0.6560 (23.6%fib), a break below could take the pair towards 0.6520(Lower BB).
USD/JPY: The dollar strengthened against yen on Monday after the Bank of Japan’s October policy meeting summary revealed differing views among its policymakers. Bank of Japan policymakers were divided on how soon they could raise interest rates with some warning of the risk of renewed market volatility after the U.S. presidential election, a summary of opinions at their October meeting showed on Monday. Many BOJ board members highlighted the need to focus on the economic fallout from market moves at last month's policy review held days before the U.S. presidential election on Nov. 5, a sign that shifts in the yen will remain key to how soon the central bank will raise rates again.. 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
Asian stocks declined on Monday after stimulus measures from China failed to meet expectations of investors, who were also disappointed by recent economic data..
China A50 was down by 0.52%, South Korean KOSPI was down by 1.14%, while Hang Seng was down by 1.45%
Commodities Recap
Gold prices fell on Monday for a second consecutive session as investors awaited U.S. economic data and comments from Federal Reserve officials this week for more clarity on the future direction of U.S. interest rates.
Spot gold dropped 0.5% to $2,670.37 per ounce, as of 0736 GMT. U.S. gold futures fell 0.7% to $2,677.
Oil prices were little changed on Monday as the threat of supply disruptions from a U.S. storm eased and after China's stimulus plan disappointed investors seeking fuel demand growth in the world's No. 2 oil consumer.
Brent crude futures rose 4 cents to $73.91 a barrel by 0714 GMT while U.S. West Texas Intermediate crude futures were at $70.31 a barrel, down 7 cents.
