Global Markets:
- Asian stock markets: Nikkei down 0.25 %, Shanghai Composite gained 0.50 %, Hang Seng rose 0.60 %, ASX 200 declined 0.80 %
- Commodities: Gold at $1193 (+1.25 %), Silver at $16.90 (+2.05 %), WTI Oil at $45.95 (-0.20 %), Brent Oil at $48.15 (-0.20 %)
- Rates: US 10-year yield at 2.33, UK 10-year yield at 1.41, German 10-year yield at 0.23
News & Data:
- PBoC Fixes USDCNY Reference Rate At 6.9042 (prev 6.9168)
- Oil tumbles as output cut looks elusive; dollar sinks – RTRS
- Dollar gives in to gravity and drops as U.S. yields extend fall – RTRS
Markets Update:
There were no data releases at all overnight, nor any news that could have driven markets, but there was still a fair amount of volatility in FX, mostly due to the Yen pairs.
USD/JPY saw a sharp reversal as the Dollar came under pressure overnight. It opened around 113 in Asia and fell to a low of 111.35. The pair managed to bounce from there and is back above 112, but the rally is showing first signs of exhaustion. Below 111.40, key support is seen at 110.00/20.
EUR/USD started the new trading week around 1.06, and rallied to 1.0685 in Asia, while Cable made it from 1.2450 to 1.2530. The commodity currencies also benefited from the broad Dollar weakness, as AUD/USD increased from 0.7430 at the open to 0.7480, and NZD/USD from 0.7030 to 0.71. Meanwhile, USD/CAD declined from 1.3540 to 1.3460.
Looking ahead, there are no notable data releases scheduled for today. However, there are plenty of important events this week (see calendar below), including the OPEC meeting in Vienna, US and Canadian GDP, Chinese manufacturing PMI and US employment data.
Upcoming Events:
- 10:00 GMT – Euro Zone Consumer Confidence
- 14:00 GMT – ECB President Draghi speaks
- 23:30 GMT – Japan Unemployment Rate
- 23:30 GMT – Japan Household Spending
- 23:50 GMT – Japan Retail Sales
The Week Ahead:
Tuesday, November 29th
- 01:00 GMT – Bank of Canada Governor Poloz speaks
- 07:45 GMT – French Consumer Spending
- 07:45 GMT – French GDP
- 08:00 GMT – Spanish CPI
- 13:00 GMT – German CPI
- 13:30 GMT – US GDP
- 14:15 GMT – FOMC Member Dudley speaks
- 15:00 GMT – US CB Consumer Confidence
- 23:50 GMT – Japan Industrial Production
Wednesday, November 30th
- 00:00 GMT – Australia HIA New Home Sales
- 00:00 GMT – Australia ANZ Business Confidence
- 00:10 GMT – RBNZ Governor Wheeler speaks
- 00:30 GMT – Australia Building Approvals
- 07:00 GMT – German Retail Sales
- 07:45 GMT – French CPI
- 08:55 GMT – German Unemployment Rate
- 08:55 GMT – German Unemployment Change
- 10:00 GMT – Italian CPI
- 10:00 GMT – Euro Zone CPI
- 12:30 GMT – ECB President Draghi speaks
- 13:15 GMT – US ADP Nonfarm Employment Change
- 13:30 GMT – US Personal Income
- 13:30 GMT – US Personal Spending
- 13:30 GMT – Canadian GDP
- 15:00 GMT – US Pending Home Sales
- 15:30 GMT – US Crude Oil Inventories
- 16:45 GMT – FOMC Member Powell speaks
- 17:35 GMT – FOMC Member Mester speaks
- 22:30 GMT – Australia AIG Manufacturing Index
Thursday, December 1st
- 00:30 GMT – Australia Private Capex
- 01:00 GMT – China Manufacturing PMI
- 01:00 GMT – China Non-Manufacturing PMI
- 08:45 GMT – Italian Manufacturing PMI
- 08:50 GMT – French Manufacturing PMI
- 08:55 GMT – German Manufacturing PMI
- 09:00 GMT – Euro Zone Manufacturing PMI
- 09:30 GMT – UK Manufacturing PMI
- 10:00 GMT – Euro Zone Unemployment Rate
- 13:30 GMT – US Initial Jobless Claims
- 13:30 GMT – FOMC Member Mester speaks
- 14:45 GMT – US Manufacturing PMI
- 15:00 GMT – US ISM Manufacturing PMI
Friday, December 2nd
- 00:30 GMT – Australia Retail Sales
- 06:45 GMT – Swiss GDP
- 09:30 GMT – UK Construction PMI
- 13:30 GMT – US NFP
- 13:30 GMT – US Average Hourly Earnings
- 13:30 GMT – US Unemployment Rate
- 13:30 GMT – Canadian Employment Change
- 13:30 GMT – Canadian Unemployment Rate
- 13:45 GMT – FOMC Member Brainard speaks
- 18:00 GMT – FOMC Member Tarullo speaks
