America’s Roundup: Dollar steadies near 16-month high, Gold drops to near 3-week low, Oil rises 3% to one-week high after U.S. taps emergency reserves-November 24th,2021

Posted at 24 November 2021 / Categories Market Roundups

Market Roundup

•Canada Corporate Profits (QoQ)  2.8% ,-0.4% previous

•US Redbook (MoM) 15.4%,-17.2% previous

•US Nov Markit Composite PMI  56.5,57.6 previous

•US Manufacturing PMI  59.1,59.0 forecast, 58.4 previous

•US Nov Services PMI  57.0,59.0 forecast, 58.7 previous

•US Nov Richmond Services Index  8,9 previous

•US Nov Richmond Manufacturing Index  11,12 previous

Looking Ahead Economic Data (GMT)

•06:00 Australia Construction Work Done (QoQ) (Q3) -3.1% forecast, 0.8% previous

•06:00 Japan Nov Manufacturing PMI  53.2 previous

•06:00 Japan Nov Services PMI  50.7 previous

• 06:30 New Zealand RBNZ Interest Rate Decision 0.75% forecast, 0.50% previous

•10:30 Japan BoJ Core CPI (YoY) 0.6% previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

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 $1.1238, 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/CAD :The Canadian dollar weakened against its U.S. counterpart on Tuesday as new concerns about the spread of COVID-19 and stronger greenback weighed on Canadian dollar.Markets have been shaken in recent sessions by surging COVID-19 cases in Europe and renewed curbs, dousing investor hopes of a quick recovery in consumption and growth worldwide. The Canadian dollar was trading 0.09% lower at 1.2684 to the greenback . The currency pair touched its strongest intraday level since 1st October  at 1.2736.Immediate resistance can be seen at 1.2705 (23.6%fib), an upside break can trigger rise towards 1.2744 (Higher BB).On the downside, immediate support is seen at 1.2651 (38.2%fib), a break below could take the pair towards 1.2610 (50%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.

UK's benchmark FTSE 100 closed up by 0.15 percent, Germany's Dax ended down  by 1.11 percent, France’s CAC finished the day down by 0.85percent.

The Nasdaq tumbled for a second straight session on Tuesday, and the S&P 500 also fell, as rising Treasury yields prompted investors to sell Tesla, Microsoft and other Big Tech names.

Dow Jones closed up by  0.51% percent, S&P 500 closed down by 0.04% percent, Nasdaq settled down by 0.78%  percent.

Treasuries Recap

U.S. Treasury yields edged higher in choppy trading in a holiday-shortened week on Tuesday as investors prepared for the Federal Reserve to become more aggressive in fighting inflation after President Joe Biden nominated its chair Jerome Powell for a second term.

The yield on 10-year Treasury notes was up 3.1 basis points to 1.656%.The yield on the 30-year Treasury bond was up 3.1 basis points to 2.009%.

Commodities Recap

Gold prices fell around 1% to a near three-week low on Tuesday as the renomination of U.S. Federal Reserve Chair Jerome Powell fuelled bets of faster interest rate hikes, bolstering the dollar and Treasury yields.

Spot gold fell 0.9% to $1,788.51 per ounce by 02:13 p.m. ET (1913 GMT). U.S. gold futures settled down 1.3% at $1,783.8.

Oil prices rose to a one-week high on Tuesday after a move by the United States and other consumer nations to release tens of millions of barrels of oil from reserves to try to cool the market fell short of some expectations

Brent futures rose $2.65, or 3.3%, to $82.35 a barrel by 12:52 p.m. EST (1752 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.91m, or 2.5%, to $78.66..

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