Posted at 20 November 2023 / Categories Market Roundups
•German Oct PPI (MoM) -0.1%, -0.1% forecast, -0.2% previous
•German Oct German PPI (YoY) -11.0%, -11.0% forecast,-14.7% previous
•Greek Sep Current Account (YoY) -0.404B, 0.498B previous
Looking Ahead Economic Data(GMT)
•13:55 French 12-Month BTF Auction 3.674% previous
•13:55 French 3-Month BTF Auction 3.796% previous
•13:55 French 6-Month BTF Auction 3.796% previous
•15:00 US Oct Leading Index (MoM) -0.7% forecast,-0.7% previous
•16:30 US 3-Month Bill Auction 5.285% previous
•16:30 US 6-Month Bill Auction 5.270% previous
•18:00 US 20-Year Bond Auction 5.245% previous
Looking Ahead Events And Other Release (GMT)
•18:45 UK BoE Gov Bailey Speaks
EUR/USD: The euro rose against dollar on Monady as the dollar extended its slide on expectations that the Federal Reserve was done raising interest rates. Last week's data reignited hopes that the Fed could begin easing monetary conditions sooner than expected after a slowing jobs market report in the U.S. and a weaker-than-expected consumer inflation report. The minutes of the Federal Reserve's last meeting, due during U.S. trading hours on Tuesday, will provide insights to investors on how well placed current expectations on interest rates are. The euro was up 0.15% at $1.0924 .Immediate resistance can be seen at 1.0897(Daily high), an upside break can trigger rise towards 1.0930( (23.6%fib).On the downside, immediate support is seen at 1.0843 (38.2%fib), a break below could take the pair towards 1.0827(5DMA).
GBP/USD: The pound strengthened against dollar on Monday as investors awaited updates on the government's fiscal policy later this week. Investor attention turned towards Britain's budget deficit readings for October on Tuesday, followed by the UK's Autumn Statement on Wednesday that would provide insights on the government's budget plans. Britain’s next government will almost certainly need to raise taxes and make unwelcome spending choices even if this week's budget update from finance minister Jeremy Hunt presents a superficially brighter picture. Immediate resistance can be seen at 1.2522(23.6%fib), an upside break can trigger rise towards 1.2544 (Sep11th high).On the downside, immediate support is seen at 1.2448 (5DMA), a break below could take the pair towards 1.2425(38.2%fib).
USD/CHF: The U.S. dollar dipped against Swiss franc on Monday as greenback weakened on optimism that U.S. interest rates may have peaked. The U.S. dollar has lost steam, giving up gains it made earlier this year, as the steep decline in Treasury yields since the start of November continued following economic data that suggested inflation is cooling, boosting expectations that the Federal Reserve is near the end of its rate-hiking cycle.Meanwhile, minutes of the Fed's last meeting will be released on Tuesday and is likely to offer some colour on policymakers' thinking as they held rates steady for a second time. The next policy meeting is scheduled for Dec. 12-13. Immediate resistance can be seen at 0.8867(5DMA), an upside break can trigger rise towards 0.8904(38.2%fib).On the downside, immediate support is seen at 0.8829(23.6%fib), a break below could take the pair towards 0.8800(Psychological level)
USD/JPY: The dollar declined against the yen on Monday extending a downtrend from last week as traders reaffirmed their belief that U.S. rates have peaked and turned their attention to when the Federal Reserve could begin cutting rates. Black Friday sales will test the pulse of the consumer-driven U.S. economy this week, while the upcoming Thanksgiving holiday made for thin markets.The flow of U.S. economic data turns to a trickle this week, but minutes of the Federal Reserve's last meeting will offer some colour on policy makers' thinking as they held rates steady for a second time. The dollar lost nearly 1% versus the Japanese currency and was last down 0.83% at 148.28 yen .Strong resistance can be seen at 149.00(38.2%fib),an upside break can trigger rise towards 150.06(23.6%fib).On the downside, immediate support is seen 148.78 (50%fib)a break below could take the pair towards 147.20 (61.8%fib).
European shares were subdued on Monday after a strong week driven by aggressive bets on interest rate cuts, with drugs-to-pesticides group Bayer sliding to a more than 14-year low and weighing on the healthcare sector and Germany's benchmark index.
(At GMT 11:32)UK's benchmark FTSE 100 was down by 0.11 percent, Germany's Dax was down by 0.22percent, France’s CAC was up by 0.26 percent.
Gold prices were off last session's two-week highs on Monday as U.S. Treasury yields bounced back, with investors looking forward to the minutes of Federal Reserve's last meeting to gauge the U.S. central bank's policy stance.
Spot gold was down 0.1% to $1,977.30 per ounce as of 1017 GMT, after rising to as high as $1,993.29 on Friday. U.S. gold futures fell 0.3% to $1,979.60.
Oil futures edged higher on Monday, extending gains on the prospect of OPEC+ deepening supply cuts to shore up prices that have fallen for four weeks on demand concerns and Middle East supply disruption owing to the Israel-Hamas conflict.
Brent crude futures rose 34 cents to $80.95 a barrel by 0915 GMT. U.S. West Texas Intermediate crude was up 31 cents at $76.20.
The front-month December WTI contract expires later on Monday while the more active January futures gained 38 cents to $76.42.