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Europe Roundup: Sterling slips against dollar as traders weigh EU restrictions impact, Gold dips, European shares skid to 3-week lows ,Oil slips on US plans to tap emergency crude reserves-November 23rd,2021

Posted at 23 November 2021 / Categories Market Roundups


Market Roundup

•French Nov Services PMI  58.2, 56.0 forecast, 56.6 previous

•French Nov Markit Composite PMI  56.3,53.6 forecast, 54.7 previous

•French Nov Manufacturing PMI  54.6,53.0 forecast, 53.6 previous

•German Nov Manufacturing PMI  57.6,56.9 forecast, 57.8 previous

•German Nov Composite PMI  52.8,51.0 forecast, 52.0 previous

•EU Nov Manufacturing PMI 58.6,57.3 forecast, 58.3 previous

•EU Nov Markit Composite PMI  55.8, 53.2 forecast, 54.2 previous

•UK Oct Services PMI  58.6,57.3 forecast, 59.1 previous

•UK Oct Composite  PMI 57.7,57.6 forecast, 57.8 previous           

Looking Ahead Economic Data (GMT)

•13:30 Canada Corporate Profits (QoQ) -0.4% previous

•13:55 US Redbook (MoM) -17.2% previous

•13:55 US Redbook (YoY) 14.7% previous

•14:55 US Nov Markit Composite PMI  57.6 previous

•14:55 US Manufacturing PMI  59.0 forecast, 58.4 previous

•14:55 US Nov Services PMI  59.0 forecast, 58.7 previous

•15:00 US Nov Richmond Services Index  9 previous

•15:00 US Nov Richmond Manufacturing Index  12 previous

Looking Ahead - Events, Other Releases (GMT)

•18:00 Canada BoC Deputy Governor Beaudry Speaks

•18:40 EU ECB's De Guindos Speaks

Fxbeat

EUR/USD: The euro edged higher against dollar on Tuesday as better than expected Germany's PMI data supported euro. Growth in Germany's private sector accelerated slightly in November, but persistent supply bottlenecks in manufacturing continued to weigh on factory output and pushed up inflationary pressures to unprecedented highs, a survey showed on Tuesday. The euro was up 0.2% against the dollar at $1.1258, after hitting a 16-month low versus the dollar. The euro has lost 2.6% so far this month, hurt by a combination of the European Central Bank's dovish monetary policy stance and, more recently, a resurgence of COVID-19 cases in Europe. Immediate resistance can be seen at 1.1304(38.2%fib), an upside break can trigger rise towards 1.1363 (50%fib).On the downside, immediate support is seen at 1.1227 (23.6 % fib), a break below could take the pair towards 1.1200(Psychological level).

GBP/USD: The pound declined against the dollar on Tuesday traders weighed the prospect how COVID-19 resurgence in the euro zone will impact Britain. Fears of more restrictions in Germany, after Austria reimposed a full lockdown. Sterling also dipped as U.S. President Joe Biden nominated Federal Reserve Chair Jerome Powell for a second four-year term, reinforcing market expectations of rate rises next year. Sterling was not far from a 11-month low of $1.3354 touched earlier in November against the dollar. Immediate resistance can be seen at 1.3438(38.2%fib), an upside break can trigger rise towards 1.3520(50%fib).On the downside, immediate support is seen at 1.3361 (23.6%fib), a break below could take the pair towards 1.3300 (Psychological level).

USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as bets on quicker-than-expected interest rate hikes increased after U.S. President Joe Biden nominated incumbent Federal Reserve Chairman Jerome Powell to a second term boosted dollar. Biden nominated Powell for a second four-year term on Monday over Lael Brainard, who was promoted to Fed vice-chair. Both Powell and Brainard’s roles will need to be confirmed by the Senate. Immediate resistance can be seen at 0.9328(23.6 % fib), an upside break can trigger rise towards 0.9357 (Higher BB).On the downside, immediate support is seen at 0.9294 (5DMA), a break below could take the pair towards 0.9282(38.2%fib ).

USD/JPY: The dollar strengthened against the Japanese yen on Tuesday after Federal Reserve Chair Jerome Powell was picked for a second term, reinforcing market expectations that U.S. interest rates will rise in 2022.Currency markets have been mostly driven in recent months by market perceptions of the different paces at which global central banks reduce pandemic era stimulus and raise rates. Versus Japan's yen, the dollar rose to its highest in four and a half years, as investors expected U.S. interest rates to diverge from those in Japan. Strong resistance can be seen at 114.89 (23.6% fib), an upside break can trigger rise towards 115.13 (Higher BB).On the downside, immediate support is seen at 114.38(38.2%fib), a break below could take the pair towards 113.97 (50% fib).

Equities Recap

European stocks slumped to a three-week low on Tuesday and were set for their worst session in nearly two months as a risk-off mood deepened amid a resurgence in COVID-19 cases and rate hike concerns.

At (GMT 11:40 ),UK's benchmark FTSE 100 was last trading down at 0.03 percent, Germany's Dax was down by 0.79 percent, France’s CAC finished was down by 0.32  percent.

Commodities Recap

Gold eased below $1,800 on Tuesday as the dollar hit 16-month highs and Treasury yields firmed, with expectations that U.S. interest rates will rise next year shored up by the renomination of Federal Reserve Chairman Jerome Powell.

Spot gold was down 0.4% at $1,797.16 per ounce by 1022 GMT, while U.S. gold futures eased 0.5% to $1,797.70.

Oil prices fell on Tuesday, reversing gains in the previous session, on growing talk the United States, Japan and India will release crude reserves to tame prices despite the threat of demand faltering as COVID-19 cases flare up in Europe.

U.S. West Texas Intermediate (WTI) crude  futures fell 58 cents, or 0.8%, to $76.17 a barrel at 0423 GMT. Brent crude  futures fell 42 cents, or 0.5%, to $79.28 a barrel.


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