Posted at 25 November 2021 / Categories Market Roundups
Market Roundup
•US Real Consumer Spending (Q3) 1.7% ,1.6% previous
•US GDP Sales (Q3) 0.0%,8.1% previous
•US GDP (QoQ) (Q3) 2.1%,2.1% forecast, 2.0% previous
•US PCE Prices (Q3) 5.3%, 5.3% previous
•US GDP Price Index (QoQ) (Q3) 5.9%, 5.7% forecast, 5.7% previous
•US Oct Core Durable Goods Orders (MoM) 0.5%,0.5% forecast, 0.5% previous
•US Oct Durable Goods Orders (MoM) -0.5%,0.2% forecast, -0.3% previous
•US Oct Durables Excluding Defense (MoM) 0.8%, -1.9% previous
•US Oct Retail Inventories Ex Auto 0.4%,0.7% previous
•US Oct Goods Trade Balance-82.89B,-97.03B previous
•US Initial Jobless Claims199K, 264K forecast, 268K previous
•US Continuing Jobless Claims 2,049K,2,045K forecast, 2,080K previous
•US Jobless Claims 4-Week Avg 252.25K,272.75K previous
•US Wholesale Inventories (MoM) 2.2%,1.4% previous
•US Oct Personal Income (MoM) 0.5%,0.2% forecast, -1.0% previous
•US Oct Real Personal Consumption (MoM) 0.7%,0.3% previous
•US PCE Price index (YoY) 5.0, 4.4 previous
•US Oct Personal Spending (MoM) 1.3%,1.0% forecast, 0.6% previous
•US Oct PCE price index (MoM) 0.6%,0.3% previous
•US Oct Core PCE Price Index (MoM) 0.4%,0.4% forecast, 0.2% previous
•US Oct Core PCE Price Index (YoY) 4.1%,4.1% forecast, 3.6% previous
•US Oct New Home Sales 745K ,800K forecast, 800K previous
•US Nov Michigan Consumer Sentiment 67.4,67.0 forecast, 66.8 previous
•US Nov Michigan Consumer Expectations 63.5 ,63.0 forecast, 62.8 previous
•US Nov Michigan 5-Year Inflation Expectations 3.00%,2.90% previous
•US Oct New Home Sales (MoM) 0.4%, 14.0% previous
•US Crude Oil Inventories 1.017M,1.398M forecast, -2.101M previous
•US Gasoline Inventories-0.603M, -0.461Mforecast, -0.708M previous
Looking Ahead Economic Data (GMT)
•10:30 Japan Leading Index (MoM) -1.6% previous
•10:30 Japan Leading Index 99.7 previous
•10:30 Japan Sep Coincident Indicator (MoM) -2.9% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro fell on Wednesday after a survey showed German business morale deteriorated in November. German business sentiment worsened for the fifth month as supply challenges in manufacturing and a spike in coronavirus infections clouded the growth outlook for Europe’s largest economy. The Ifo institute said its business climate index fell to 96.5 from 97.7 in October.The euro fell 0.3% to its lowest level since early July 2020 at $1.1210. Immediate resistance can be seen at 1.1228(23.6%fib), an upside break can trigger rise towards 1.1274 (5DMA).On the downside, immediate support is seen at 1.1200(Psychological level), a break below could take the pair towards 1.1164(Lower BB).
GBP/USD: The British pound hit a fresh 11-month low against the dollar on Wednesday as expectations for a rate hike supported the greenback, while it was slightly higher against the euro.Investors remained focused on whether or not the Bank of England will raise interest rates at its December meeting, and wondered about the impact of the new wave of COVID-19 cases across the continent. The pound fell 0.4% versus the dollar, after hitting its lowest level since Dec. 22, 2020, at $1.3324.Immediate resistance can be seen at 1.3375(5DMA), an upside break can trigger rise towards 1.3401(38.2%fib).On the downside, immediate support is seen at 1.3316 (23.6%fib), a break below could take the pair towards 1.3261 (Lower BB).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday recouping some losses as risk sentiment stayed low ahead of the U.S. Thanksgiving holiday. Oil prices were largely steady as investors questioned the effectiveness of a U.S.-led release of oil from strategic reserves. The Canadian dollar was last trading 0.07% higher at 1.2653 to the greenback .Immediate resistance can be seen at 1.2690(38.2%fib), an upside break can trigger rise towards 1.2742(23.6%fib).On the downside, immediate support is seen at 1.2651(50%fib), a break below could take the pair towards 1.2609(61.8%fib)
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as robust U.S. economic data lifted the dollar. U.S. consumer spending increased more than expected in October, while price pressures also heated up during the month. Other data on Wednesday showed that the number of Americans filing new claims for unemployment benefits fell to the lowest level since 1969 last week, while gross domestic product data confirmed that growth slowed sharply in the third quarter. Strong resistance can be seen at 115.51 (23.6% fib), an upside break can trigger rise towards 116.00 (Psychological level).On the downside, immediate support is seen at 114.98(38.2%fib), a break below could take the pair towards 114.24 (50% fib).
Equities Recap
European shares ended a four-day losing streak with shares of Telecom Italia leading gains, although fears around Europe's worsening COVID-19 situation and the prospect of severe restrictions restrained the market.
UK's benchmark FTSE 100 closed up by 0.27 percent, Germany's Dax ended down by 0.37 percent, France’s CAC finished the day down by 0.03 percent.
Wall Street ended higher on Wednesday, lifted by gains in Nvidia and other tech stocks, while Gap and Nordstrom shares tumbled following weak quarterly reports.
Dow Jones closed down by 0.03% percent, S&P 500 closed up by 0.23% percent, Nasdaq settled up by 0.44% percent.
Treasuries Recap
U.S. Treasury yields hovered near highs for the year in choppy trading after data released Wednesday suggested the job market and consumer spending continue to improve.
The yield on 10-year Treasury notes was down 1.2 basis points to 1.653% after rising as much as 3 basis points earlier in the day, near its high for the year of 1.74% reached in March.
Commodities Recap
Gold prices slipped to a three-week low on Wednesday as robust U.S. economic data lifted the dollar and Treasury yields, with jitters around a sooner-than-expected interest rate hike from the Federal Reserve adding to the downbeat mood.
Spot gold was down 0.4% at $1,783.18 per ounce by 02:23 p.m. ET (1923 GMT), after falling to its lowest since Nov. 4 at $1,777.80 earlier in the session.
Oil prices were largely steady on Wednesday as investors questioned the effectiveness of a U.S.-led release of oil from strategic reserves and turned their focus to how producers will respond.
Brent crude settled down 6 cents, or 0.07%, at $82.25 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 11 cents, or 0.14%, at $78.39.