• Europe roundup: Sterling consolidates near 1.2900, Euro steadies as Eurozone inflation accelerates quicker than expected, European shares tumble - Friday, November 29th, 2019

    来源: FxWire Pro - Media Round Ups / 01 十二月 2019 09:29:50   America/New_York

    Market Roundup

    • Gold set for worst month in 3 years
       
    • Oil mixed ahead of OPEC+ meeting
       
    • Eurozone inflation accelerates more than expected in November
       

    Economic Data Ahead

    • (0830 ET/1330 GMT) Statistics Canada releases its Raw Material Price Index for the month of October. The index remained flat in the previous month
       
    • (0830 ET/1330 GMT) Statistics Canada will report its industrial producer prices for the month of October. The indicator declined 0.1 percent in the prior month.
       
    • (0830 ET/1330 GMT) Statistics Canada is expected to report that gross domestic product increased 0.1 percent in September, after posting a similar rise in August.
       

    Key Events Ahead

    • (1230 ET/1730 GMT) ECB Executive Board member Benoît Cœuré gives a speech

    FX Beat

    DXY: The dollar index advanced amid signs of U.S. labor market strength and a possible turnaround in business investment. The greenback against a basket of currencies traded up at 98.39, having touched a high of 98.44 on Wednesday, its highest since November 13.  

    EUR/USD: The euro rose after data showed Eurozone consumer prices grew faster than expected in November, boosted by a jump in food and services prices despite a decline in energy costs. Investors now await the European Central Bank meeting on December 12, where its policy stance is not expected to change for months to come.  The European currency traded 0.05 percent up at 1.1004, having touched a low of 1.0992 on Wednesday, its lowest since November 14. Immediate resistance is located at 1.1038 (10-DMA), a break above targets 1.1052 (21-DMA). On the downside, support is seen at 1.0989, a break below could drag it below 1.0966.

    USD/JPY: The dollar rallied to a 6-month peak on the back of upbeat U.S. economic data that prompted investors to scale back interest rate-cut bets. However, doubts over a preliminary U.S.-China trade deal dented the upside in the pair. The major was trading 0.05 percent up at 109.54, having hit a high of 109.60 earlier, its highest since May 31. Investors’ will continue to track the broad-based market sentiment, amid a lack of economic data from the U.S. docket. Immediate resistance is located at 109.74, a break above targets 109.92. On the downside, support is seen at 109.28, a break below could take it near at 109.00.

    GBP/USD: Sterling declined after rising to a 1-week peak in the previous session on a poll predicting a comfortable election victory for the ruling Conservatives Party ahead of the December 12 election. The major traded 0.1 percent down at 1.2898, having hit a high of 1.2951 on Thursday, it’s highest since November 21. Investors’ attention will remain on the development surrounding the general elections, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2945, a break above could take it near 1.3000. On the downside, support is seen at 1.2867, a break below targets 1.2823. Against the euro, the pound was trading 0.1 percent down at 85.30 pence, having hit a high of 84.99 on Thursday, it’s highest since May 8.

    USD/CHF: The Swiss franc slumped to a near 2-week trough as investors sentiment improved after data showed Eurozone inflation accelerated faster than expected in November on a rise in food and services prices. The major trades at 0.2 percent up at 0.9998, having touched a high of 1.0000 earlier, it’s highest since October 4. On the higher side, near-term resistance is around 1.0027. and any break above will take the pair to the next level till 1.0065. The near-term support is around 0.9964, and any close below that level will drag it till 0.9941(10-DMA).

    Equities Recap

    European shares plunged as investors grew cautious that China’s retaliation to a U.S. law backing Hong Kong protesters could threaten to derail negotiations on a trade truce between both the economies.

    The pan-European STOXX 600 index tumbled 0.1 percent at 408.78 points, while the FTSEurofirst 300 declined 0.1 percent to 1,599.14 points.

    Britain's FTSE 100 trades 0.2 percent down at 7,402.79 points, while mid-cap FTSE 250 eased 0.2 to 20,979.68 points.

    Germany's DAX eased 0.1 percent at 13,228.15 points; France's CAC 40 trades 0.05 percent higher at 5,915.58 points.

    Commodities Recap

    Crude oil prices were mixed as investors awaited a meeting of OPEC and its allies next week that may result in the extension of an output cut agreement to support the market. International benchmark Brent crude was trading 1.4 percent down at $62.99 per barrel by 1045 GMT, having hit a low of $62.70 earlier, its lowest since November 21. U.S. West Texas Intermediate was trading 0.3 percent down at $58.06 a barrel, after rising as high as $58.71 last week, its highest since September 23.

    Gold prices consolidated within narrow ranges as investors refrained from making big bets amid doubts whether the United States and China could seal a trade deal. Spot gold was 0.1 percent up at $1,456.55 per ounce by 1047 GMT, having touched a low of $1449.92 on Tuesday, its lowest since Nov. 12. U.S. gold futures rose 0.3 percent to $1,458.

    Treasuries Recap

    The Euro zone bond yields were off 1-month lows as EZ inflation accelerates more than expected in November. The German benchmark Bund yield was at -0.36 percent, off one-month lows hit the previous session at around -0.39 percent. Italy’s 10-year bond yield, a touch lower at 1.34 percent, but was poised to end November 32 bps higher. Spanish and Portuguese yields are up 17 and 24 bps respectively, set for their largest monthly rise since May 2018 .

    The Japanese government bonds ended weaker, with the benchmark 10-year JGB futures falling 0.13 point to 153.16. The key 10-year cash JGB yield rose 1.5 basis points to minus 0.080 percent, its highest level in two weeks. At the longer end of the market, the 20-year yield was flat at 0.250 percent, while the 30-year yield added half a basis point to 0.405 percent and the 40-year yield rose 1 basis point to 0.445 percent. Elsewhere, the two-year yield was flat at minus 0.180 percent and the five-year yield rose 0.5 basis point to minus 0.185 percent.

    The yields on Australian 3-year paper declined 13 basis points just this week to 0.61 percent, not far from the all-time low of 0.57 percent. The yields on 10-year bonds were off 8 basis points for the week at 1.01 percent and approaching their record trough of 0.85 percent.

    The New Zealand bonds with 10-year yields were down 5 basis points for the week at 1.32 percent.

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