News

Europe Roundup: Sterling holds above 11-month lows on Omicron concerns, European shares gain, Gold ticks higher, Oil rebound as calm returns after Omicron hit-November 29th,2021

Posted at 29 November 2021 / Categories Market Roundups


Market Roundup

•EU Nov Selling Price Expectations  49.0, 42.3 previous

•EU Nov Industrial Sentiment  14.1, 13.9 forecast, 14.2 previous

•EU Nov Consumer Inflation Expectation  39.3 forecast, 40.0 previous

•EU Nov Business and Consumer Survey  117.5, 117.5 forecast, 118.6 previous

•EU Nov Services Sentiment  18.4, 16.6 forecast, 18.0     previous

•Belgium Nov CPI (YoY)  4.16% previous

•Belgium Nov CPI (MoM)  1.47% previous

Looking Ahead Economic Data (GMT)

•13:00 German Nov HICP (MoM) -0.3%forecast, 0.5% previous

•13:00 German Nov CPI (MoM)  -0.4% forecast, 0.5% previous

•13:00 German Nov HICP (YoY)  5.5% forecast, 4.6% previous

•13:30 Canada Current Account (Q3) 4.6B forecast, 3.6B  previous

•13:30 Canada Oct RMPI (YoY)  2.5% previous

•13:30 Canada Oct IPPI (YoY)  14.9% previous

•14:00 French 12-Month BTF Auction -0.754% previous

•14:00 French 3-Month BTF Auction -0.959% previous

•14:00 French 6-Month BTF Auction -0.847% previous

•15:00 US Oct Pending Home Sales Index  116.7 previous

•15:00 US Oct Pending Home Sales (MoM)  0.9% forecast, -2.3% previous

•15:30 US Nov Dallas Fed Mfg Business Index  14.6 previous

Looking Ahead - Events, Other Releases (GMT)

•15:00 US Fed Chair Powell Testifies

•15:30 US FOMC Member Williams Speaks

•17:15 ECB President Lagarde Speaks

•18:00 US FOMC Member Clarida Speaks

•19:00 Canada BoC Gov Council Member Schembri Speaks

•19:00 Canada BoC Gov Macklem Speaks

•20:00 US FOMC Member Williams Speaks

Fxbeat

EUR/USD: The euro edged  lower against dollar on Monday as investors looked to assess the impact of the Omicron coronavirus variant and the resulting measures on global economies. The variant was found around the world over the weekend, with cases in the Netherlands, Denmark and Australia even as more countries imposed travel restrictions.  While markets have calmed on Monday, investors will be scrutinising scientists' assessment of the efficacy of vaccines against the new variant and trying to assess how potential measures could affect economies and policy. The euro, which rose versus the dollar on Friday, was down around 0.4% at $1.12665. Immediate resistance can be seen at 1.1304(11DMA), an upside break can trigger rise towards 1.1322 (50%fib).On the downside, immediate support is seen at 1.1261(38.2 % fib), a break below could take the pair towards 1.1190(23.6%fib).

GBP/USD: Sterling held above an 11-month low on Monday as calm returned to global markets after the discovery of the Omicron coronavirus variant on Friday prompted investors to dump the British currency. South Africa discovered the Omicron variant last week, prompting countries to rush to tighten border controls and sending markets into a tailspin on Friday.But on Monday investors were engaged in  buying the dip  trades, as markets take a more balanced view of risks attached to what the WHO called a  variant of concern. The pound stabilised at $1.3324 in early London trading versus the U.S. dollar after plunging to a December 2020 low of $1.3278 on Friday. Immediate resistance can be seen at 1.3345(5DMA), an upside break can trigger rise towards 1.3399(50%fib).On the downside, immediate support is seen at 1.3312 (23.6%fib), a break below could take the pair towards 1.3255 (Lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Monday as currency markets reversed some of Friday's moves, calming after the initial shock of discovering a new coronavirus variant. The Omicron variant, first detected in southern Africa, triggered global alarm, with financial markets selling off on Friday on fears that it would disrupt the economic recovery after the two-year pandemic. The U.S. dollar index, which had its biggest one-day drop since May on Friday, edged back higher and at 0821 GMT was up 0.1% on the day at 96.326.  Immediate resistance can be seen at 0.9256(50% fib), an upside break can trigger rise towards 0.9295 (38.2%fib).On the downside, immediate support is seen at 0.9232 (50%fib), a break below could take the pair towards 0.9200(Psychological level ).

USD/JPY: The dollar declined against the Japanese yen on Monday as concerns over the impact of the Omicron coronavirus variant offset a stronger dollar. On the data front, Japan's retail sales rose for the first time in three months in October, though less than expected, and the underlying private consumption trend pointed to persistent strains on a fragile economic recovery despite an easing of COVID-19 curbs. Japan's yen steadied and was up around 0.2% on the day versus the dollar at 113.33 at 0829 GMT.Strong resistance can be seen at 113.98 (23.6% fib), an upside break can trigger rise towards 114.53 (19th Nov high).On the downside, immediate support is seen at 113.55(38.2%fib), a break below could take the pair towards 113.00(50%fib).

Equities Recap

European shares rose on Monday after their worst selloff in more than a year as investors awaited clues on whether the Omicron variant of coronavirus would hamper economic recoveries and monetary tightening plans by central banks.

At (GMT 10:38 ),UK's benchmark FTSE 100 was last trading up at 0.95 percent, Germany's Dax was up by 0.56 percent, France’s CAC finished was up by 1,09  percent.

Commodities Recap

Gold prices edged higher on Monday, as concerns over the impact of the possibly vaccine-resistant Omicron coronavirus variant supported the precious metal's safe-haven appeal.

Spot gold rose 0.1% to $1,793.72 per ounce by 0201 GMT. U.S. gold futures advanced 0.4% to $1,793.2.

Oil prices bounced more than $3 a barrel to recoup a chunk of Friday's shellacking, while safe haven bonds and the yen lost ground as markets latched onto hopes the new variant of concern would prove to be mild.

Brent rebounded 4.2% to $75.80 a barrel, while U.S. crude rose 5.1% to $71.61.


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