Posted at 22 November 2021 / Categories Market Roundups
Market Roundup
• Spanish Trade Balance -2.40B, -3.90B previous
• Belgium Nov Consumer Confidence 1, 4 previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Wholesale Sales (MoM) 1.0% previous
•13:30 US Oct Chicago Fed National Activity -0.13 previous
•14:00 French 6-Month BTF Auction -0.800% previous
•14:00 French 3-Month BTF Auction -0.863% previous
•14:00 French 12-Month BTF Auction -0.754% previous
•15:00 EU Nov Consumer Confidence -5.5 forecast, -4.8 previous
•15:00 US Oct Existing Home Sales (MoM) 7.0% previous
•15:00 US Oct Existing Home Sales 6.20M forecast, 6.29M previous
•16:30 US 3-Month Bill Auction 0.045% previous
•16:30 US 6-Month Bill Auction 0.065% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Monday as growing concerns over the impact of new COVID-19 restrictions in Europe weighed on euro. Austria began its fourth lockdown, the first introduced since vaccines became widely available, shutting Christmas markets, bars, cafes and theatres. A fourth wave of infections has plunged Germany, Europe's largest economy, into a national emergency, Health Minister Jens Spahn said, warning that vaccinations alone will not cut case numbers. The euro slipped 0.25% to $1.122 at 0905 GMT, close to a 16-month low touched on Friday.Immediate resistance can be seen at 1.1321(38.2%fib), an upside break can trigger rise towards 1.1383 (50%fib).On the downside, immediate support is seen at 1.1252 (23.6 % fib), a break below could take the pair towards 1.1200(Psychological level).
GBP/USD: The pound declined against the dollar on Monday as UK rate variability and rising COVID cases in Europe weighed on sterling. Traders' focus remains firmly on whether or not the Bank of England will raise interest rates at its December meeting. The BoE wrong-footed many investors earlier this month when it did not lift rates from their record low 0.1%, following comments from Bailey in late October which markets interpreted as a signal that a rate hike was very near. The pound against the dollarwas a tad weaker at $1.3424 , off the $1.3354 low hit last week. Immediate resistance can be seen at 1.3453(5DMA), an upside break can trigger rise towards 1.3481(38.2%fib).On the downside, immediate support is seen at 1.3395 (23.6%fib), a break below could take the pair towards 1.3353 (12th Nov low).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as bullish comments by Federal Reserve officials supported greenback. Federal Reserve officials Richard Clarida and Christopher Waller on Friday who suggested a faster pace of stimulus tapering may be appropriate amid a quickening recovery and heated inflation. The dollar was also supported amid growing anxiety over the impact of surging COVID-19 infections in Europe, with Austria reimposing a full lockdown and Germany considering following suit. Immediate resistance can be seen at 0.9282(38.2 % fib), an upside break can trigger rise towards 0.9330 (23.6%fib).On the downside, immediate support is seen at 0.9244 (50%fib), a break below could take the pair towards 0.9210(61.8%fib ).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as COVID-19 infections in Europe and hawkish comments from several U.S. central bankers boosted greenbacks appeal. Federal Reserve officials Richard Clarida and Christopher Waller on Friday suggested that a faster pace of stimulus tapering may be appropriate, pushing the greenback higher. The dollar index , which gauges the currency against six major peers, traded little changed at 96.141, staying within sight of last week's 16-month high of 96.266. Strong resistance can be seen at 114.30 (38.2% fib), an upside break can trigger rise towards 114.85 (23.6%fib).On the downside, immediate support is seen at 113.85(50%fib), a break below could take the pair towards 113.37 (61.8% fib).
Equities Recap
European stocks kicked off the week on a cautious note on Monday after posting a second consecutive weekly drop, and the euro struggled as traders weighed the risks of European lockdown restrictions and prospects of a faster Federal Reserve taper.
At (GMT 10:00 ),UK's benchmark FTSE 100 was last trading up at 0.36 percent, Germany's Dax was down by 0.06 percent, France’s CAC finished was up by 0.24 percent.
Commodities Recap
Oil dipped on Monday as the return of COVID-19 restrictions in Europe and talk about hastened tapering from the U.S. Federal Reserve put investors on guard.
Oil futures skidded about 1% at the open, sending Brent crude and U.S. crude to seven-week lows of $78.05 and $74.76 respectively amid oversupply concerns.
Gold prices were near their lowest level in two weeks on Monday, constrained by a stronger dollar and expectations the U.S. Federal Reserve would accelerate the pace of stimulus tapering to curb broadening inflationary risks.
Spot gold was down 0.2% at $1,841.36 per ounce, as of 0650 GMT. U.S. gold futures eased 0.3% to $1,845.20.