Mon, Nov 30, 2020 @ 20:45 GMT
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Fundamental Analysis

Sunset Market Commentary

Markets At the start of the new week, global trading showed no clear, unequivocal trend across markets. Asian equities finished the month with modest losses despite the a solid China PMI confidence, both for the manufacturing and the services sector. This investor caution also spilled over into European trading. At...

Oil Steady ahead of OPEC Meeting

Traders take profit as OPEC+ meets to discuss 2021 production plans Pre-meeting talks between a select few key OPEC+ ministers failed to generate a consensus on production plans for next year. This includes plans for January, when cuts had planned to be reduced by two million barrels, to 5.7 million....

Swiss Franc Flat after Mixed Data

The Swiss franc is showing little movement at the start of the new trading week. Currently, USD/CHF is trading at 0.9049, up 0.07% on the day. The currency is trying to shake off a mini-slump, after posting declines over four straight days, which resulted in a losing week for...

Chilled End to Bumper November

It's been a pretty chilled start to the week, with a little more profit taking kicking in as we bring an end to a bumper November. More vaccine news from Moderna, as they applied for emergency regulatory approval in the US and Europe. That could see the vaccine distributed before...

U.S Futures Consolidating – Watch SPGI, INFO, MRNA, GS

The S&P 500 Futures are mixed after they closed higher on Friday. Later today, the Market News International will release Chicago PMI for November (59.2 expected). The National Association of Realtors will post October pending home sales (+1.0% on month expected). The Dallas Federal Reserve will post its Manufacturing Outlook...

Japanese Yen Calm At 104

It was a quiet week for the Japanese yen and the lack of movement has continued on Monday. Currently, USD/JPY is trading at 104.03, down 0.07% on the day. In Japan, last week’s inflation numbers were soft, as inflation continues to limp along at low levels. The BoJ Core CPI,...

Dollar Slips Again On Fed Speculation, Stocks Pause For Breath

Dollar extends slide as investors look to Powell testimony and NFP report for Fed clues Stocks stumble at start of week, but vaccine progress keeps risk appetite alive Pound still holding out for Brexit breakthrough as time running out Oil slips as OPEC+ unlikely to agree on long...

Is 74 Line Next For The Aussie?

The Australian dollar is calm in Monday trade. Currently, AUD/USD is trading at 0.7386, down 0.02% on the day. Aussie posts excellent November The Australian dollar gained 1.1% last week and has posted an outstanding November, with gains of 4.8%. The US dollar has been in a prolonged slump, and cyclical...

EU Indices Consolidate | TA Focus On Sanofi

INDICES Friday, European stocks were broadly higher. The Stoxx Europe 600 climbed 0.5%, Germany's DAX advanced 0.4%, France's CAC 40 rose 0.6%, and the U.K.'s FTSE 100 gained 0.1%. EUROPE ADVANCE/DECLINE 65% of STOXX 600 constituents traded higher Friday. 75% of the shares trade above their 20D MA vs 75% Thursday (above the...

Stock Futures Retreat From Overbought levels

US stock futures are flashing red, but the main indexes are still set to finish the month with strong gains. At the time of writing, the futures on Dow Jones have declined by 0.70%, the S&P 500 has dropped 0.60%, and Nasdaq is down 0.25%. Bears took the lead as...

EUR Remains Strong Ahead German Inflation

Later today, the German Federal Statistical Office will post November CPI, expected at -0.1% on year. On a monthly basis, it will be expected at -0.7%. From a technical point of view, on a daily chart, EUR/USD still stands above its 50-day moving average (in blue). Readers may therefore consider...

OPEC+ Facing Hard Choices

Crude oil futures were trading lower Monday morning as market participants closely watched OPEC members and their allies as they began a two-day meeting to discuss their next steps in production policy. Brent and WTI January contracts rallied more than 7% last week and have risen by more than...

The US Dollar Finally Succumbed To All The Pressure This Morning

Markets The US dollar finally succumbed to all the pressure this morning. The trade-weighted greenback changes hands below 91.73/91.75 support. The former is the 76% retracement level of the 2018-2020 dollar rally while the latter is the 2020 low. A sustained break lower would set the stage for a fresh...

Strong Chinese PMI Numbers

Market movers today There are no significant market movers today, so COVID-19 developments and restrictions together with Brexit negotiations are in focus. On Brexit, UK foreign secretary Dominic Raab said yesterday that a deal could potentially be made this week after good faith negotiations last week between the EU...

Crude Oil Prices Drop Ahead Of The OPEC + Meeting

The Australian dollar declined slightly in early trading even after strong economic data from Australia and China. In Australia, economic numbers showed that company pre-tax profits increased by 25.8% in the third quarter, a significant increase from the previous increase of 6.3%. Housing credit increased by 0.3% while the...

Equities November Reign – SP500

After an equity rally of such magnitude and as bonds are set to finish the month flat there has been an expectation that asset managers who run balanced funds that consist of a 60:40 split between stocks and bonds would rebalance/reduce equity exposure into month-end. Some of the world’s largest...

Copper FUTs Rise On China PMI Data

General Trend China banks rise after PBOC announcement related to MLFs; Consumer firms lagged Consumer and Financial firms are among the decliners in Australia; Treasury Wine extended decline after issuing statement on China, later pared some of loss Topix Insurance, Banks and Real Estate indices decline in Japan, automakers...

Forex and Cryptocurrency Forecast

First, a review of last week's events: EUR/USD. Making a forecast for the past week, most experts (65%) preferred the European currency. Graphical analysis, 90% of trend indicators and 75% of oscillators on D1 also sided with the bulls. And this forecast turned out to be almost correct. "Almost", because...

The Weekly Bottom Line: Pandemic Dampens Holiday Cheer

U.S. Highlights Financial markets were more upbeat this week as investors cheered encouraging vaccine news and the start of the presidential transition. The S&P 500 is on track to end the week with a 2.3% gain from last week's close. The impact of the current wave of infections continues...

Week Ahead: Biden to Begin Transition, Coronavirus, Brexit (Again)

In a short week for the US, there were several headlines to keep everyone on their toes.   Joe Biden selected former Fed Chairman Janet Yellen as his pick for Treasury Secretary, the US Dow Jones Index rose above 30,000 for the first time, and It was another week of...

Forward Guidance: Government Support to Soften Blow of Job Losses

Optimism about the effectiveness of COVID-19 vaccines has brightened the outlook for the economy in 2021. This is true even as escalating virus case counts and the re-imposition of containment measures take their toll on Canadian’s health and the economy in the final days of 2020. The second wave...

Week Ahead – We Go Again

A busy end to a chaotic year December may normally be associated with everything slowing down as we ease our way into the festive period but as with everything else in 2020, this is no normal December. Donald Trump is continuing to fight the election result and is going out...

RBA Meeting: A More Optimistic Take

The Reserve Bank of Australia will hold its final meeting for the year at 03:30 GMT Tuesday. Having cut rates last month, no action is expected this time, so the market reaction will depend on the language of the accompanying statement. Economic data have improved lately and vaccines have...

Week Ahead – Data Overload May Spoil Vaccine Euphoria; NFP to Lead the Pack

It’s NFP week and as investors battle the vaccine optimism against the short-term gloom, the latest jobs report from the United States may determine which way sentiment sways next. Canada will also publish jobs numbers along with its Q3 GDP print. The Reserve Bank of Australia, meanwhile, will kick...

Weekly Focus – Rays of Light in Europe

While Europe is seeing rays of light in getting the second COVID-19 wave under control, the situation in US is worsening fast. Many European countries now see a turnaround in new infections and this week France joined the club with a big decline in new cases. Italy is finally...

Sunset Market Commentary

Markets Today’s only market-moving remark came after an EU diplomat quoted by Reuters. It sent sterling lower with EUR/GBP heading towards 0.8950. The EU diplomat stated the obvious though by pointing out that only a few days are left for EU talks. “Without London taking the necessary decisions quickly, reaching...

U.S Futures Slightly Up- Watch TSLA, DIS, CSCO

The S&P 500 Futures are slightly on the upside after U.S. financial markets were closed for the Thanksgiving holiday yesterday. European indices opened on the upside before facing a consolidation as EU Ambassadors agreed to prepare diligently for all possible Brexit outcomes and called on EU Commission to present contingency...

EUR/USD Steady as French Data Beats Forecasts

EUR/USD is up slightly on Friday. Currently, the pair is trading at 1.1926, up 0.11% on the day. With the US on an unofficial holiday after Thanksgiving, Friday will likely be a muted session. France GDP bounces back As the United Kingdom finally bids adieu to the European Union at the...

Time Running Short On The Brexit Negotiating Front

Notes/Observations EU-UK to resume face-to-face Brexit talks as time was running short Asia: Japan Nov Tokyo CPI data registered the largest drop in Headline and Core CPI since 2012 (CPI YoY: -0.7% v -0.5%e; CPI (ex-fresh food) Y/Y: -0.7% v -0.6%e China Oct Industrial Profits Y/Y: +28.2% v 10.1% prior...

Japanese Yen Dips To 104 Line

The Japanese yen has posted slight gains for a second straight day. Currently, USD/JPY is trading at 104.01, down 0.24% on the day. The yen has recovered most of the losses from early in the week. The trading week has been particularly short, as Japanese markets were on holiday on...