Posted at 05 December 2022 / Categories Market Roundups
•Italian Nov Composite PMI 48.9,45.8 previous
• Italian Nov Services PMI 49.5, 48.3 forecast,46.4 previous
•French Nov S&P Global Composite PMI 48.7, 48.7 forecast,50.2 previous
•French Nov Services PMI 49.3, 49.4 forecast, 51.7 previous
•German Nov Composite PMI 46.3,46.4 forecast, 45.1 previous
•German Nov Services PMI 46.1, 46.4 forecast 46.5 previous
•EU Services Nov PMI 48.5,48.6 forecast, 48.6 previous
•UK Nov Composite PMI 48.2,48.3 forecast, 48 previous
•EU Dec Sentix Investor Confidence -21.0, -27.6 forecast,-30.9 previous
•UK Nov Services PMI 48.8, 48.8 forecast, 48.8 previous
•EU Oct Retail Sales (MoM) -1.8%,-1.7% forecast, 0.4% previous
• EU Oct Retail Sales (YoY) -2.7%, -2.6% forecast, -0.6% previous
Looking Ahead - Economic Data (GMT )
•13:30 Canada Oct Building Permits (MoM) -6.1% forecast, -17.5% previous
•14:00 French 12-Month BTF Auction 2.346% previous
•14:00 French 3-Month BTF Auction 1.500% previous
•14:00 French 6-Month BTF Auction 1.927% previous
•14:45 US Nov Services PMI 46.1 forecast,46.1 previous
•14:45 US Nov S&P Global Composite PMI 46.3 forecast,48.2 previous
•15:00 US Nov CB Employment Trends Index 119.57 previous
•15:00 US Oct Durables Excluding Transport (MoM) 0.5% previous
•15:00 US Nov ISM Non-Manufacturing PMI 53.1 forecast, 54.4 previous
•15:00 US Nov ISM Non-Manufacturing Prices 70.7 previous
•15:00 US Nov ISM Non-Manufacturing Employment 49.1 previous
•15:00 US Nov ISM Non-Manufacturing Business Activity 55.7 previous
•15:00 US Nov ISM Non-Manufacturing New Orders 56.5 previous
•15:00 US Oct Durables Excluding Defense (MoM) 0.8% previous
•15:00 US Oct Factory Orders (MoM) 0.7% forecast 0.3% previous
•15:00 US Oct Factory orders ex transportation (MoM) -0.1% previous
•16:30 US 3-Month Bill Auction 4.285% previous
•16:30 US 6-Month Bill Auction 4.550% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro edged higher on Monday as investors balanced expectations for a slowdown in central banks’ monetary tightening path against Friday’s U.S. jobs data which fuelled inflation fears. Investors focused on comments from European Central Bank officials in the next few days, which might fine-tune the market view on rates. The ECB pre-meeting blackout period starts on Thursday. The European Central Bank should raise interest rates by 50 bps on Dec. 15, French central bank chief Francois Villeroy de Galhau said on Sunday, reinforcing expectations for the ECB to slow the pace of monetary tightening after back-to-back 75 bp hikes. Immediate resistance can be seen at 1.0573(23.6%fib), an upside break can trigger rise towards 1.0614(Higher BB).On the downside, immediate support is seen at 1.0475(9DMA), a break below could take the pair towards 1.0431(38.2%fib).
GBP/USD: The pound slid on Monday, as an initial jolt of investor enthusiasm over signs of possible loosening in COVID restrictions in China faded, and sterling still held within sight of five-month highs against the dollar. By late morning in London, much of the risk rally that took sterling to a session high of $1.2345 had run out of steam, leaving the pound down 0.3% at $1.2259. It fell 0.4% against the euro to 86.13 pence. Meanwhile, UK data on Monday showed Britain’s services sector shrank slightly for a second month in November, as cost-of-living pressures and uncertainty about the economic outlook squeezed demand, a survey showed on Monday. Immediate resistance can be seen at 1.2326( 23.6%fib), an upside break can trigger rise towards 1.2477 (Higher BB).On the downside, immediate support is seen at 1.2176(5DMA), a break below could take the pair towards 1.2116(38.2%fib).
USD/CHF: The dollar dipped against the Swiss franc on Monday as investors hoped steps to unwind pandemic restrictions in China would eventually brighten the outlook for global growth and commodity demand, nudging the dollar down against swiss franc. Investor attention remains focused on the pace of central banks ending their rate-hiking cycles. The Reserve Bank of Australia meets on Tuesday, and is expected to raise rates by a mere 25 basis points. The Bank of Canada meets on Wednesday and is expected to raise rates by 50 bps Immediate resistance can be seen at 0.9418(5DMA), an upside break can trigger rise towards 0.9443(38.2%fib).On the downside, immediate support is seen at 0.9324(23.6%fib), a break below could take the pair towards 0.9300(Psychological level).
USD/JPY: The dollar strengthened against Japanese yen on Monday as traders piled into riskier assets after more Chinese cities eased some of their COVID related restrictions, stoking hopes of an eventual reopening of the world's second biggest economy. Data on Friday showed the U.S. economy created more jobs than expected last month, making it harder for the Fed to justify slowing the pace of monetary tightening, when inflation is still running at almost 8%. The Japanese yen, which has been one of the greatest beneficiaries of the weaker dollar in the past month was on the back foot on Monday, with the dollar was up 0.7% to 135.25 yen. Strong resistance can be seen at 139.03(5DMA), an upside break can trigger rise towards 140.53(38.2%fib).On the downside, immediate support is seen at 137.24 (Daily low), a break below could take the pair towards 137.00(Psychological level).
European shares gained on Monday by hopes that China taking steps to ease its zero-COVID policy would support global growth and increase commodity demand.
At (GMT 12:42 ),UK's benchmark FTSE 100 was last trading up at 0.20 percent, Germany's Dax was up by 0. 58 percent, France’s CAC finished was down by 0. 58 percent.
Gold pulled back slightly from a five-month high on Monday as the U.S. dollar recouped some losses, although the metal still held near the key $1,800 level, buoyed by news of top bullion consumer China relaxing its stringent COVID-19 restrictions.
Spot gold ticked 0.2% lower to $1,794.53 per ounce by 1206 GMT, after touching its highest since July 5 at $1,809.91 earlier in the day.
Oil prices rose on Monday after OPEC+ nations held their output targets steady ahead of a European Union ban and a G7 price cap which kicked in on Russian crude.
Brent crude futures were last up $2.29, or 2.7%, to $87.86 a barrel at 1200 GMT, while WTI crude futures gained $2.24, or 2.8%, to $82.22 a barrel.