Market Roundup
•Finnish Current Account (Sep) 1.10B, 0.70B previous
• China M2 Money Stock (YoY) (Oct) 7.5%, 7.0% forecast, 6.8% previous
• China New Loans (Oct) 500.0B 770.0B, 1,590.0B previous
• China Outstanding Loan Growth (YoY) (Oct) 8.0%, 8.0% forecast, 8.1% previous
•China Chinese Total Social Financing (Oct) 1,400.0B, 1,545.0B forecast, 3,760.0B 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 Events And Other Releases(GMT)
• 18:00 German Buba Balz Speaks
Currency Forecast
EUR/USD: The euro hits a 4-1/2-month low against the U.S. dollar as investors worried about possible U.S. tariffs which would hurt the euro area's economy. Market participants flagged that the sensitivity of the euro to the threat of higher U.S. import tariffs was evident late Friday, when media reported that Trump was lining up Robert Lighthizer, seen as a hawk on trade, to run his trade policy. However, two sources familiar with the matter said Lighthizer has not been asked by Trump to return to the agency overseeing trade policy. The single currency was down 0.3% at $1.0685, after hitting $1.0679, its lowest level since late-June. 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 1.0655`(Daily low), 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. A range of important economic data for the UK is due this week, including Q3 GDP growth, the unemployment rate, and wage growth figures. The dollar index was 0.3% firmer at 105.32. Last week, it jumped more than 1.5% to 105.44, its highest since early July. 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 12:29, the pair was trading up 0.02% at 0.6584 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
European shares advanced on Monday, with most sectors gaining, ahead of a week packed with global economic data including inflation readings in Germany and the United States.
At (GMT 12:29),UK's benchmark FTSE 100 was last trading up at 0.84 percent, Germany's Dax was up by 1.41 percent, France’s CAC was last up by 1.13 percent.
Commodities Recap
Gold prices declined for a second session on Monday, hurt by a firmer dollar and increased risk appetite, as markets expect the Federal Reserve to adopt a cautious approach under U.S. President-elect Donald Trump's administration.
Spot gold fell 0.8% to $2,662.59 per ounce as of 1112 GMT. U.S. gold futures fell 0.9% to $2,669.40.
Oil prices fell on Monday, after China's stimulus plan disappointed investors seeking fuel demand growth in the world's No. 2 oil consumer and as the U.S. dollar edged higher.
Brent crude futures fell $1.10, or 1.5% to $72.77 a barrel by 1101 GMT while U.S. West Texas Intermediate crude futures were at $69.17 a barrel, down $1.21, or 1.7%.
