Market Roundup
•Swiss CPI (MoM) (Nov): -0.1%, -0.1% forecast, -0.1% previous
•Spanish Unemployment Change (Nov): -16.0K, 29.3K forecast, 26.8K previous
Looking Ahead Economic Data(GMT)
•13:55 USD Redbook (YoY): 4.9% previous
•15:00 USD JOLTS Job Openings (Oct): 7.490M forecast, 7.443M previous
•15:10 USD IBD/TIPP Economic Optimism (Dec): 54.1 forecast, 53.2 previous
Looking Ahead Events And Other Releases (GMT)
•17:35 US FOMC Member Kugler Speaks
•20:45 US Fed Goolsbee Speaks
Currency Forecast
EUR/USD: The euro gained on Tuesday, recovering some ground after political turmoil in France prompted traders to seek hedging protection against potential price swings. French Prime Minister Michel Barnier faces a no-confidence vote on Wednesday after widespread opposition to his budget, which includes painful tax hikes and spending cuts designed to address the country's fragile finances. The euro, the weakest G10 currency in November, started this month with a 0.7% drop on Monday but later gained 0.2%, reaching $1.05185. In the last month, the euro has lost 3% against the dollar and more than 1% against both the pound and the Swiss franc . Immediate resistance can be seen at 1.0506(SMA 9), an upside break can trigger rise towards 1.0568(38.2%fib).On the downside, immediate support is seen at 1.0478(23.6%fib), a break below could take the pair towards 1.0358(Lower BB)
GBP/USD: Sterling gained against the dollar on Tuesday after dovish comments from Federal Reserve Governor Christopher Waller. Federal Reserve Governor Christopher Waller, whose views are often a bellwether for U.S. monetary policy, said on Monday that with inflation still forecast to fall to 2% he is inclined "at present" to support another interest rate cut later this month.The comments from a key US rate-setter led investors to boost expectations for a rate cut at the Fed's December 17-18 meeting to nearly 75% . Markets are now pricing in a 70% likelihood of a 25 basis point rate cut at the Fed's next meeting on Dec. 18, compared to about 50% just over a week ago. The pound was last up 0.16% at $1.2678, recovering some of Monday's 0.7% loss. In the last three months.Immediate resistance can be seen at 1.2735(50%fib), an upside break can trigger rise towards 1.2789 (SMA 30).On the downside, immediate support is seen at 1.2629(38.2%fib), a break below could take the pair towards 1.2507(23.6%fib)
AUD/USD: The Australian dollar was little changed against the U.S. dollar on Tuesday as investors digested mixed Australian economic data. Australia's current account deficit came in higher than expected in the third quarter as its surplus on trade alone shrank to the smallest since mid-2018 on weaker resource prices, while net exports added less to economic growth than hoped.Data from the Australian Bureau of Statistics on Tuesday showed the current account ran a deficit of A$14.1 billion ($9.12 billion) in the September quarter, above forecasts of a A$10.0 billion shortfall. The previous quarter's deficit was as well revised sharply higher to A$16.4 billion. The Australian dollar was up 0.2% at $0.6488, reversing some of the previous session's 0.7% fall. Immediate resistance can be seen at 0.6494(SMA 14), an upside break can trigger rise towards 0.6519(38.2%fib).On the downside, immediate support is seen at 0.6446(23.6%fib), a break below could take the pair towards 0.6436(Lower BB).
USD/JPY: The USD/JPY remained near a seven-week low amid growing expectations that the Bank of Japan (BOJ) could soon raise interest rates. Over the weekend, BOJ Governor Kazuo Ueda signaled that such hikes are imminent, supported by encouraging economic data, including October inflation figures from Tokyo. The yen, which was the only G10 currency to appreciate against the dollar last month, surged to a high of 149.09 on Monday, its strongest level since late October. Currently, markets are assigning a 56% probability that the BOJ will raise rates by 0.25% to 0.5% during its upcoming policy meeting on December 18-19. Immediate resistance can be seen at 150.15 (38.2%fib) an upside break can trigger rise towards 150.97 (50%fib). On the downside, immediate support is seen at 149.07(50%fib) a break below could take the pair towards 148.41(Lower BB).
Equities Recap
Europe's STOXX 600 index to a near one-month high on Tuesday, while investors kept a close watch on France's political turmoil as the likelihood of the government's collapse sent shockwaves through its markets.
At GMT 13:13 ,UK's benchmark FTSE 100 was last up by 0.90 percent, Germany's Dax was last up by 0.50 percent, France’s CAC was last up by 0.47 percent.
Commodities Recap
Gold prices inched higher on Tuesday, as renewed expectations of a U.S. rate cut in December put pressure on the dollar and Treasury yields.
Spot gold rose 0.1% to $2,640.16 per ounce by 1242 GMT, after falling as much as 1% on Monday. U.S. gold futures gained 0.2% to $2,662.80.
Oil prices rose nearly 1% on Tuesday, as investors focused on the upcoming OPEC+ meeting later in the week.
Brent crude futures rose 76 cents, or 1.06%, to $72.59 a barrel by 1131 GMT, while U.S. West Texas Intermediate crude climbed 75 cents, or 1.1%, to $68.85.
