• Europe roundup: Sterling gains following yougov poll, Euro rebounds as Eurozone sentiment improves, European shares tumble - Thursday, November 28th, 2019

    来源: FxWire Pro - Media Round Ups / 01 十二月 2019 09:29:45   America/New_York

    Market Roundup

    • Eurozone sentiment rebounds more than expected in Nov
       
    • Oil drops as U.S. inventory build
       
    • Gold gains on Hong Kong tensions
       

    Economic Data Ahead

    • (0830 ET/1330 GMT) Statistics Canada is likely to report that the current account deficit expanded to C$9.00 billion in the third quarter, compared with a deficit of C$6.38 billion in the previous quarter.

    Key Events Ahead

    • (1135 ET/1635 GMT) ECB Executive Board member Benoît Cœuré gives a speech
       
    • (1500 ET/2000 GMT) ECB Executive Board member Lane’s speech

    FX Beat

    DXY: The dollar index held firm near a 2-week peak, as yesterday's data showed U.S. economic growth picked up slightly in the third quarter. Trading is likely to remain subdued as U.S. markets are closed for the Thanksgiving holiday. The greenback against a basket of currencies traded up at 98.35, having touched a high of 98.44 on Wednesday, its highest since November 13.   

    EUR/USD: The euro rose from a 2-week low after data showed Eurozone economic sentiment rebounded more than expected in November, boosted by optimism in the key services sector and a better mood in industry and among consumers. The European currency traded 0.1 percent up at 1.1013, having touched a low of 1.0992 on Wednesday, its lowest since November 14. Immediate resistance is located at 1.1040 (10-DMA), a break above targets 1.1059 (21-DMA). On the downside, support is seen at 1.0989, a break below could drag it below 1.0966.

    USD/JPY: The dollar declined, retreating from a 5-month peak recorded in the previous session after the U.S. passed legislation backing pro-democracy protesters in Hong Kong. China warned that it would take firm counter-measures if the U.S. continued to interfere in Hong Kong. The major was trading 0.1 percent down at 109.45, having hit a high of 109.60 on Wednesday, its highest since November 12. Investors’ will continue to track the broad-based market sentiment, as U.S. markets remain closed on account of Thanksgiving Day. 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 108.94 (5-DMA).

    GBP/USD: Sterling rallied to a 1-week peak after a poll suggested Britain’s governing Conservative Party would win a comfortable majority in the December 12 election. The major traded 0.2 percent up at 1.2938, having hit a high of 1.2951 earlier, 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 1.2970, a break above could take it near 1.3000. On the downside, support is seen at 1.2881 (21-DMA), a break below targets 1.2823. Against the euro, the pound was trading flat at 85.10 pence, having hit a high of 84.99 earlier, it’s highest since May 8.

    USD/CHF: The Swiss franc nudged up, bouncing off a 1-1/2 month low hit in the previous session, as risk sentiment weakened after Trump signed a legislation into law that requires the State Department to certify, at least annually, that Hong Kong retains enough autonomy to justify favourable U.S. trading terms. The major trades at 0.05 percent down at 0.9988, having touched a high of 1.0000 on Wednesday, it’s highest since October 16. 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 0.9965 (5-DMA), and any close below that level will drag it till 0.9930 (10-DMA).

    Equities Recap

    European shares retreated from near-record highs as U.S. President Donald Trump signed into law a bill backing protesters in Hong Kong, stoking doubts about a resolution to the prolonged tariff war between Washington and Beijing.

    The pan-European STOXX 600 index eased 0.2 percent at 408.96 points, while the FTSEurofirst 300 declined 0.2 percent to 1,599.11 points.

    Britain's FTSE 100 trades 0.4 percent down at 7,399.42 points, while mid-cap FTSE 250 rose 0.2 to 20,993.24 points.

    Germany's DAX eased 0.4 percent at 13,237.62 points; France's CAC 40 trades 0.2 percent lower at 5,913.86 points.

    Commodities Recap

    Crude oil prices declined, extending losses from the previous session after official data showed U.S. crude and gasoline stocks rose against expectations and production hit a record. International benchmark Brent crude was trading 0.7 percent down at $63.64 per barrel by 1025 GMT, having hit a high of $64.58 on Wednesday, its highest since September 23. U.S. West Texas Intermediate was trading 0.7 percent down at $57.70 a barrel, after rising as high as $58.71 on Friday, its highest since September 23.

    Gold prices surged as investors bought the safe-haven metal on doubts about whether the United States and China will seal a trade deal after President Donald Trump signed a legislation supporting Hong Kong protesters. Spot gold was trading 0.2 percent up at $1,457.14 per ounce by 1027 GMT, having touched a low of $1449.92 on Tuesday, its lowest since Nov. U.S. gold futures rose 0.1 percent to $1,455.20.

    Treasuries Recap

    The Euro zone government bond yields fell as investors turned a little more nervous over tensions around Hong Kong. The 10-year German bond yield fell nearly 2 basis points to -0.383 percent, a four-week low, while other bond yields, including French were also down. The Italian 10-year bond yield fell more than 2 basis points to 1.300 percent, while the Spanish dipped 2 bps to 0.389 percent.

    The Japanese government bond prices slipped. The 10-year JGB yield rose 2 basis points to minus 0.095 percent, up 5.5 basis points on the month. At the longer end of the market, the 20-year yield edged up 2 basis points to 0.250 percent, while the 30-year JGB yield rose 1.5 basis points to 0.400 percent. The two-year JGB yield rose 1 basis point to minus 0.190 percent. The five-year yield rose 2.5 basis points to minus 0.190 percent.

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