Posted at 07 December 2021 / Categories Market Roundups
•Swiss Nov Unemployment Rate n.s.a 2.5%,2.6% forecast, 2.5% previous
•Swiss Nov Unemployment Rate s.a 2.5%,2.6% forecast, 2.7% previous
•UK Nov Halifax House Price Index (MoM) 1.0%, 0.8% forecast, 0.9% previous
•German Oct Industrial Production (MoM) 2.8% ,0.8% forecast, -1.1% previous
•French Oct Trade Balance -7.5B, -6.9B forecast, -6.8B previous
• German Dec ZEW Economic Sentiment 29.9,25.1 forecast, 31.7 previous
• EU GDP (QoQ) (Q3) 2.2% ,2.2% forecast, 2.1% previous
• German ZEW Current Conditions -7.4 ,5.0 forecast, 12.5 previous
• EU GDP (YoY) (Q3) 3.9% ,3.7% forecast, 14.2% previous
Looking Ahead - Economic Data (GMT)
• 13:30 Canada Oct Trade Balance 2.00B forecast, 1.86B previous
• 13:30 US Unit Labor Costs (QoQ) (Q3) 8.3% forecast, 1.1% previous
• 13:30 US Nonfarm Productivity (QoQ) (Q3) -4.9% forecast, -5.0% previous
• 13:30 US Oct Trade Balance -66.80B forecast, -80.90B previous
• 13:30 Canada Oct Exports 53.00B previous
• 13:30 US Exports 207.60B previous
• 13:30 US Imports 288.50B previous
• 14:30 GlobalDairyTrade Price Index 1.9% previous
• 15:00 Canada Nov Ivey PMI 59.3 previous
• 15:00 Canada Nov Ivey PMI n.s.a 61.2 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro dipped against dollar on Tuesday as s a firmer dollar and U.S. Treasury yields weighed on euro. The dollar index steadied, hanging on to an overnight jump made with U.S. yields as investors hoped early signs the Omicron variant may be mild will be proved correct.On the data front,German industrial output rose more than expected in October in a rare sign of strength in manufacturing, but analysts warned that supply bottlenecks for raw materials and intermediate goods would continue to hamper production in Europe's biggest economy. The euro was down 0.07 percent at $1.1277. 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 was slightly higher on Tuesday, while some in the market bet that the Bank of England will raise interest rates in February 2022 after keeping them unchanged this month. BoE Deputy Governor Ben Broadbent reignited some hopes for an interest rate hike when he said on Monday that inflation in Britain might "comfortably exceed" 5% in April next year and that the country's tight labour market risked becoming a more constant source of inflation. Sterling strengthened 0.1% versus the dollar to $1.327 at 0848 GMT. 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 declined against the Swiss franc on Tuesday as investors hoped early signs the Omicron variant may be mild would be borne out. Early observations in South Africa suggest those infected suffer relatively minor symptoms compared with previous virus waves. Anthony Fauci, the top U.S. infectious disease official, also said it doesn't seem too severe. Financial markets, which have struggled this year to decipher central bankers’ policy signals, face their biggest challenge yet in December when in the space of 24 hours the Federal Reserve, ECB and Bank of England hold crucial meetings. Dollar dipped 0.12% to the franc at 0.9234 . Immediate resistance can be seen at 0.9229 (38.2%fib), an upside break can trigger rise towards 0.9308(Oct 13th high).On the downside, immediate support is seen at 0.9229 (38.2%fib), a break below could take the pair towards 0.9193 (50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as traders bet that the Omicron variant of COVID-19 would not be as severe as previously expected. On Sunday, the top U.S. infectious disease official, Anthony Fauci said Omicron variant does not look like there's a great degree of severity so far. Besides Omicron, central banks are in focus. The Bank of Canada meets on Wednesday, with markets expecting it to set course for rate hikes next year. The Fed, Bank of England, European Central Bank and Bank of Japan all meet next week. Dollar was 0.16% higher against the yen at 113.65 yen. Strong resistance can be seen at 113.77(23.6%fib), an upside break can trigger rise towards 113.91 (30DMA).On the downside, immediate support is seen at 113.17 (38.2%fib), a break below could take the pair towards 112.68 (50%fib).
European stocks rose on Tuesday to their highest in more than a week, with technology shares witnessing a rebound, as worries about the Omicron coronavirus variant ebbed, while miners jumped after China eased its monetary policy.
At (GMT 10:15),UK's benchmark FTSE 100 was last trading up at 1.11 percent, Germany's Dax was up by 1.96 % percent, France’s CAC finished was up by 2.03% percent.
Gold prices were flat on Tuesday, as a firmer dollar and U.S. Treasury yields weighed on its appeal and confined the metal to a tight $4 range.
Spot gold was little changed at $1,778.79 per ounce by 0130 GMT. U.S. gold futures were flat at $1,780.00.
Oil prices edged up on Tuesday after a near 5% rebound the day before as concerns about the impact of the Omicron variant on global fuel demand eased while Iran nuclear talks hit roadblocks, delaying the return of Iranian crude supplies.
Brent crude futures rose 60 cents, or 0.8%, to $73.68 a barrel at 0520 GMT, after settling 4.6% higher on Monday. U.S. West Texas Intermediate crude was at $70.23 a barrel, up 74 cents, or 1.1%, building on a 4.9% gain in the previous session.