Posted at 06 December 2022 / Categories Market Roundups
•U.S. services industry activity rises to 56.5 in Nov
•Canada Oct Building Permits (MoM) -1.4%,-6.1% forecast, -17.5% previous
•French 12-Month BTF Auction 2.397% ,2.346% previous
•French 3-Month BTF Auction 1.445%,1.500% previous
•French 6-Month BTF Auction 1.925%,1.927% previous
•US Nov Services PMI 46.2,46.1 forecast,46.1 previous
•US Nov S&P Global Composite PMI 46.4,46.3 forecast,48.2 previous
•US Nov CB Employment Trends Index 117.65, 119.57 previous
•US Oct Durables Excluding Transport (MoM) 0.5%,0.5% previous
•US Nov ISM Non-Manufacturing PMI 56.5, 53.1 forecast, 54.4 previous
• US Nov ISM Non-Manufacturing Prices 70.0,70.7 previous
•US Nov ISM Non-Manufacturing Employment 51.5, 49.1 previous
• US Nov ISM Non-Manufacturing Business Activity 64.7,55.7 previous
• US Nov ISM Non-Manufacturing New Orders 56.0, 56.5 previous
• US Oct Durables Excluding Defense (MoM) 0.9%,0.8% previous
• US Oct Factory Orders (MoM) 1.0%,0.7% forecast 0.3% previous
• US 3-Month Bill Auction 4.270%,4.285% previous
• US 6-Month Bill Auction 4.570%,4.550% previous
Looking Ahead - Economic Data (GMT )
• 03:30 Australia Dec RBA Interest Rate Decision 3.10% forecast, 2.85% previous
Looking Ahead - Events, Other Releases (GMT)
• 03:30 Australia RBA Rate Statement
EUR/USD: The euro dipped on Monday as dollar rose on new evidence of a strong U.S. economy raised fears that interest rates will stay higher for longer, eclipsing China's easing of pandemic restrictions.U.S. services industry activity unexpectedly picked up in November, with employment rebounding, in the latest sign of underlying economic momentum that likely will keep the Federal Reserve on edge to tighten policy as it fights high inflation. The Institute for Supply Management (ISM) said its non-manufacturing PMI increased to 56.5 last month from 54.4 in October, which was the lowest reading since May 2020. The euro slid 0.42% to $1.0503, having earlier climbed to $1.0585, its highest level since June 28. 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 dipped on Monday as dollar rose as data showed U.S. services industry activity unexpectedly picked up in November, prompting speculation the Federal Reserve may not be able to pivot to slower rate rises imminently. U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy as it braces for an anticipated recession next year. Sterling, which had risen to a more than five-month high of $1.2345 in Asian trade Monday, was down 0.94% at $1.2194. 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/CAD: The Canadian dollar weakened to a six-day low against its U.S. counterpart on Monday, as investors worried that signs of U.S. economic resilience would extend the length of the Federal Reserve’s campaign to raise interest rates. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment.The price of oil settled 3.8% lower at $76.93 a barrel even as more Chinese cities eased COVID-19 curbs in a positive sign for fuel demand.The loonie was trading 1% lower at 1.3601 to the greenback, or 73.52 U.S. cents, its weakest level since last Tuesday.Immediate resistance can be seen at 1.3606 (23.6%fib), an upside break can trigger rise towards 1.3625 (Higher BB).On the downside, immediate support is seen at 1.3530 (38.2%fib), a break below could take the pair towards 1.3500 (Psychological level).
USD/JPY: The dollar strengthened against Japanese yen on Monday after data showed that U.S. services industry activity unexpectedly picked up in November, prompting speculation the Federal Reserve may lift interest rates more than recently projected.The Institute for Supply Management (ISM) said its non-manufacturing PMI increased to 56.5 last month from 54.4 in October, indicating that the services sector, which accounts for more than two-thirds of U.S. economic activity, remained resilient in the face of rising interest rates. Economists polled had forecast the non-manufacturing PMI slipping to 53.1. The dollar climbed 1.68% against the yen to 136.615 yen, bouncing from Friday's three-and-a-half month low of 133.62.Strong resistance can be seen at 137.03(50%fib), an upside break can trigger rise towards 138.08(Dec 1st high).On the downside, immediate support is seen at 135.40 (38.2%fib), a break below could take the pair towards 134.20(Lower BB).
European stocks closed broadly lower on Monday with investors turning cautious after data showed the euro zone economy is slipping into a recession..
UK's benchmark FTSE 100 closed down by 0.15 percent, Germany's Dax ended down by 0.56 percent, France’s CAC finished the day down by 0. 67 percent.
U.S. stocks ended Monday lower, as investors spooked by better-than-expected data from the services sector re-evaluated whether the Federal Reserve could hike interest rates for longer, while shares of Tesla slid on reports of a production cut in China.
Dow Jones closed down by 1.40percent, S&P 500 ended down by 1.79 percent, Nasdaq finished the down by 1.93 percent.
Gold prices beat a sharp retreat on Monday as the dollar rebounded on bets that strong U.S. economic readings may give the Federal Reserve fodder to accelerate rate hikes.
Spot gold dipped 1.6% to $1,769.14 per ounce by 1:33 p.m. ET (1833 GMT) after touching its highest since July 5 at $1,809.91 earlier in the day.U.S. gold futures settled down 1.6% at $1,781.3.
Oil prices fell over 3% on Monday, following U.S. stock markets lower, after U.S. service sector data raised worries that the Federal Reserve could continue its aggressive policy tightening path.
Brent crude futures settled down $2.89, or 3.4%%, at $82.68 a barrel. West Texas Intermediate crude (WTI) fell $3.05, or 3.8%, to $76.93 a barrel. Both benchmarks had earlier risen more than $2, before reversing direction.