Market Roundup
• UK Nationwide House Price Index (MoM) (Nov): 0.3%, 0.0% forecast, 0.2% previous.
• French Government Budget Balance (Oct): -136.2B, -155.4B previous.
•French Car Registration (YoY) (Nov): -0.3%, 2.9% previous.
•Spanish Unemployment Change (Nov): -18.8K, -12.4K forecast, 22.1K previous.
•Italian Unemployment Rate (Oct): 6.0%, 6.1% forecast, 6.2% previous.
•Eurozone Core CPI (YoY) (Nov): 2.4%, 2.4% forecast, 2.4% previous.
•Eurozone Core CPI (MoM) (Nov): -0.5%, 0.3% previous.
•Eurozone CPI (YoY) (Nov): 2.2%, 2.1% forecast, 2.1% previous.
•Eurozone CPI (MoM) (Nov): -0.3%, 0.2% previous.
•Eurozone CPI, n.s.a (Nov): 129.35, 129.70 previous.
•Eurozone HICP ex Energy & Food (YoY) (Nov): 2.4%, 2.4% previous.
•Eurozone HICP ex Energy & Food (MoM) (Nov): -0.4%, 0.2% previous.
•Eurozone Unemployment Rate (Oct): 6.4%, 6.3% forecast, 6.4% previous.
Looking Ahead Economic Data (GMT)
•15:00 US Construction Spending (MoM) (Sep) 0.2% previous.
•15:00 US Total Vehicle Sales (Nov) 15.40M forecast, 15.30M previous.
•15:00 Global DairyTrade Price Index -3.0% previous.
•15:00 US Milk Auctions 3,678.0 previous.
•15:10 USIBD/TIPP Economic Optimism 44.1 forecast, 43.9 previous.
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro steadied after data on Tuesday after showed euro zone inflation was slightly hotter-than-expected. The euro was steady at $1.1608 after data showed inflation in the 20 nations sharing the euro accelerated to 2.2% last month from 2.1% in October, a small rise that is unlikely to be too concerning for the European Central Bank. Inflation in the euro zone is practically at the ECB's 2% target, ECB policymaker Joachim Nagel said in an interview published on Tuesday. Nagel played down the significance for the ECB of a rise in U.S. inflation, which he said was caused by import tariffs and could get worseif the Federal Reserve cut interest rates. Immediate resistance can be seen at 1.1652(Dec 1st high), an upside break can trigger rise towards 1.1668(Higher BB).On the downside, immediate support is seen at 1.1572(SMA20), a break below could take the pair towards 1.1524(50%fib).
GBP/USD: Sterling slipped against the dollar on Tuesday as the post-budget boost faded and attention shifted to increasingly dovish expectations for the Bank of England. Britain's economy will grow faster than previously expected next year, the OECD said on Tuesday, citing the impact of Finance Minister Rachel Reeves' budget on consumption and drag from global uncertainty that could keep pressure on inflation.Last week Reeves' long-awaited budget soothed some concerns about Britain's long-term finances, fuelling a rally in UK shares, bonds and the pound. Investors in the global markets are awaiting the decision from the U.S. Federal Reserve on interest rates next week, with markets expecting a 25-basis-point rate cut. The Bank of England is expected to deliver a similar sized move later in the month .Immediate resistance can be seen at 1.3253(38.2%fib), an upside break can trigger rise towards 1.3273(SMA 20).On the downside, immediate support is seen at 1.3122(SMA 20), a break below could take the pair towards 1.3051(23.6%fib).
AUD/USD: The Australian dollar edged higher on Tuesday after data signalled solid third-quarter economic growth, buoyed by a jump in government spending and a long-awaited rebound in business investment. Figures from the Australian Bureau of Statistics showed government spending added 0.4 percentage points to GDP in the September quarter. The Reserve Bank of Australia meets next week and is expected to hold rates at 3.60%, with a slightly more hawkish tone possible. Governor Michele Bullock appears before lawmakers on Wednesday. Immediate resistance can be seen at 0.6560(50%fib), an upside break can trigger rise towards 0.6583 (Higher BB).On the downside, immediate support is seen at 0.6504(38.2%fib), a break below could take the pair towards 0.6468(Nov 26th low)
USD/JPY: The U.S. dollar steadied on Tuesday as traders took profit on the yen following its strong recent rally. The move in the Japanese currency was driven by hawkish signals from Bank of Japan Governor Kazuo Ueda, who said in a speech in Nagoya that policymakers would weigh the “pros and cons” of a potential December rate hike marking the clearest indication yet of near-term policy tightening. He later added that the central bank would clarify its future rate path once interest rates reach 0.75%, noting that wage data and other key indicators would play a central role in shaping December’s decision. Markets have since priced in a rising probability of a December move, with last month’s slide in the yen to 10-month lows further strengthening the case for tighter policy. . Immediate resistance can be seen at 156.17(Dec 1st high) an upside break can trigger rise towards 157.40 (23.6%fib) .On the downside, immediate support is seen at 155.14 (38.2%fib) a break below could take the pair towards 154.71 (Dec 1st low)
Equities Recap
European equities inched up on Tuesday as gains in the banking sector offset losses in healthcare, while Bayer shares jumped after the U.S. government backed the company’s appeal in weedkiller-related lawsuits.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading up at 0.17 percent, Germany's Dax was up by 0.33 percent, France’s CAC was last up by 0.05 percent.
Commodities Recap
Gold slid about 1% on Tuesday as rising U.S. Treasury yields and profit-taking after a six-week high weighed on prices, while silver retreated from the record peak hit a day earlier.
Spot gold lost 0.7% to $4,204.50 per ounce by 1215 GMT, after falling over 1% earlier in the session.U.S. gold futures for February delivery were down 0.9% at $4,235.50 per ounce.
Oil prices held steady on Tuesday as investors weighed supply risks from Ukrainian drone strikes on Russian energy infrastructure and rising tensions between the United States and Venezuela involving Ukraine and Russia.
Brent crude futures fell 12 cents, or 0.2%, to $63.05 a barrel by 1301 GMT. U.S. West Texas Intermediate crude was down 7 cents, or 0.1%, to stand at $59.25 a barrel.
