Posted at 06 December 2021 / Categories Market Roundups
• German Oct Factory Orders (MoM) -6.9%,-0.5% forecast, 1.3% previous
• German Nov IHS Markit Construction PMI 47.9, 47.7 previous
•Sweden Current Account (Q3) 63.0B, 80.3B previous
•UK Nov Construction PMI 55.5, 52.0 forecast, 54.6 previous
•EU Dec Sentix Investor Confidence 13.5, 15.9 forecast, 54 18.3 previous
Looking Ahead - Economic Data (GMT)
•14:00 French 6-Month BTF Auction-0.863% previous
•14:00 French 3-Month BTF Auction-0.949% previous
•14:00 French 12-Month BTF Auction-0.771% previous
•US Nov CB Employment Trends Index 112.23 previous
Looking Ahead - Events, Other Releases (GMT)
EUR/USD: The euro was little changed against dollar on Monday as investors assessed the potential economic fallout of the new Omicron variant and an increasingly hawkish commentary from the U.S. Federal Reserve. Concerns over the new variant had spurred large swings in markets over the past week as investors feared more curbs on activity, while uncertainty over a hawkish Federal Reserve also kept investors cautious. The euro was down 0.10 percent at $1.1294. Immediate resistance can be seen at 1.1362 (50% fib), an upside break can trigger rise towards 1.1420 (30 DMA).On the downside, immediate support is seen at 1.1274(38.2%fib), a break below could take the pair towards 1.1179 (23.6% fib).
GBP/USD: Sterling edged higher against the dollar on Monday, but remained close to a 2021 low hit last week as investors awaited a speech on monetary policy and economic growth from Bank of England Deputy Governor Ben Broadbent.Markets now broadly expect the BoE to keep interest rates unchanged in its Dec. 16 policy meeting as the Omicron variant spreads across the world. The pound rose 0.39% to $1.3283 at 12:25 GMT, not far from a 2021 low of $1.3194 touched last week. Immediate resistance can be seen at 1.3265(50%fib), an upside break can trigger rise towards 1.3328(61.8%fib).On the downside, immediate support is seen at 1.3194 (38.2%fib), a break below could take the pair towards 1.3126 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as Treasury yields rose off last week's 2-1/2-month lows following news that initial observations suggested those suffering from the Omicron COVID-19 strain only had mild symptoms. The Omicron news from South Africa helped reverse some of the moves from Friday.The dollar index inched 0.10% higher at 96.29, within range of November's 16-month peak of 96.938. Dollar gained 0.5% to the franc at 0.9222 . Immediate resistance can be seen at 0.9229 (38.2%fib), an upside break can trigger rise towards 0.9266(Nov 30th high).On the downside, immediate support is seen at 0.9193 (50%fib), a break below could take the pair towards 0.9156 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as Omicron emerged in more countries and investors faced a week-long wait for key U.S. inflation figures that could settle the course of interest rates. Omicron remained a concern as the variant spread to about one-third of U.S. states, though there were reports from South Africa that cases there only had mild symptoms. Dollar was 0.37% higher against the yen at 113.18 yen. Strong resistance can be seen at 113.17 (38.2%fib), an upside break can trigger rise towards 113.73 (23.6%fib).On the downside, immediate support is seen at 112.69 (50%fib), a break below could take the pair towards 112.20 (61.8%fib).
European stocks opened higher on Monday while U.S. futures also traded in the black in a tentative rebound from last week when the spread of the COVID-19 Omicron variant and expectations of tighter U.S. monetary policy rocked global markets.
At (GMT 11:15),UK's benchmark FTSE 100 was last trading up at 0.60 percent, Germany's Dax was down by 0.03 % percent, France’s CAC finished was up by 0.40% percent.
Gold prices edged lower on Monday, pressured by a stronger dollar and rising expectations that the U.S. Federal Reserve could reduce its asset purchases at a faster pace amid signs of a tighter labour market.
Spot gold fell 0.2% to $1,780.63 per ounce by 0820 GMT, while U.S. gold futures dropped 0.1% to $1,782.70.
Oil prices rose by more than US$1 a barrel on Monday after top exporter Saudi Arabia raised prices for its crude sold to Asia and the United States, and as indirect U.S.-Iran talks on reviving a nuclear deal appeared to hit an impasse.
Brent crude futures for February gained US$1.61, or 2.3%, to US$71.49 a barrel by 0720 GMT while US West Texas Intermediate crude for January were at US$67.89 a barrel, up US$1.63, or 2.5%.