Dollar gains on trade optimism, Wall street gains, Gold slips, Oil gains on optimism over US-China trade deal - November 6th 2019.
• Brazil Oct Markit Composite PMI 51.8, 52.5 previous
• Brazil Oct Markit Services PMI 51.2, 51.8 previous
• US Exports 206.00B, 207.80B previous
• US Imports 258.40B, 262.90B previous
• US Sep Trade Balance -52.50B, -52.50B forecast, -55.00B previous
• Canada Sep Exports 49.78B, 50.35B forecast, 50.41B previous
• Canada Sep Imports 50.76B, 50.98B forecast, 51.65B previous
• Canada Sep Trade Balance -0.98B, -0.70B forecast, -1.24B previous
• US Redbook (YoY) 5.5%, 4.5% previous
• US Redbook (MoM) 0.3%,-0.1% previous
• US Oct Markit Composite PMI 50.9, 51.2 forecast, 51.0 previous
• US Oct Services PMI 50.6, 51.0 forecast, 50.9 previous
• US Oct ISM Non-Manufacturing Business Activity 57.0 , 55.0 forecast, 55.2 previous
• US Oct ISM Non-Manufacturing Employment 53.7, 50.4 previous
• US Oct ISM Non-Manufacturing PMI 54.7, 53.5 forecast, 52.6 previous
• US Oct ISM Non-Manufacturing Prices 56.6, 60.0 previous
• US Sep JOLTs Job Openings 7.024M, 7.028M forecast, 7.301M previous
• New Zealand GlobalDairyTrade Price Index 3.7%,1.9% forecast, 0.5% previous
Looking Ahead - Economic Data (GMT)
• 21:45 New Zealand Employment Change (QoQ) (Q3) 0.3% forecast, 0.8% previous
• 21:45 New Zealand Labor Cost Index (YoY) (Q3) 2.3% forecast, 2.2% previous
• 21:45 New Zealand Labor Cost Index (QoQ) (Q3) 0.6%,0.8% previous
• 21:45 New Zealand Unemployment Rate (Q3) 4.1%forecast, 3.9% previous
• 00:30 Japan Oct Services PMI 50.3 forecast, 52.8 previous
Looking Ahead - Events, Other Releases (GMT)
• 23:50 Japan Monetary Policy Meeting Minutes
EUR/USD: The euro declined against the U.S. dollar on Tuesday, as signs that Beijing and Washington are inching closer to a trade deal boosted demand for greenback. The deal, which may be signed this month by Trump and Chinese President Xi Jinping at a yet-to-be determined location,is widely expected to include a U.S. pledge to scrap tariffs scheduled for Dec. 15 on about $156 billion worth of Chinese imports, including cellphones, laptop computers and toys. The euro was down 0.54 percent at $1.1068.The dollar index, which measures the greenback against six major currencies, was 0.40 percent higher at 97.95. Immediate resistance can be seen at 1.1089 (21 DMA), an upside break can trigger rise towards 1.1122 (100 DMA).On the downside, immediate support is seen at 1.1040 (50 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: The pound was little changed against the dollar Tuesday, but stayed within recent trading ranges after survey data showed Britain’s services sector stagnated last month due to concerns about Brexit. IHS Markit’s services PMI edged up to 50.0 - which represents zero growth - from 49.5 in September, one of the lowest readings since 2009.The all-sector PMI stayed below 50 for a third straight month, the first time this has happened since 2009.The British currency was last trading at $1.2889, up 0.03 percent on the day. Immediate resistance can be seen at 1.2984 (Nov 1st high), an upside break can trigger rise towards 1.3004 (Oct 22nd High).On the downside, immediate support is seen at 1.2775 (21 DMA), a break below could take the pair towards 1.2864 (Daily high).
USD/CAD: The Canadian dollar was little changed on Tuesday as data showed a narrowing in Canada's trade deficit and investors became more optimistic of a trade deal between the United States and China. Canada's trade deficit narrowed in September to C$978 million, compared with a revised August deficit of C$1.24 billion, as exports and imports declined, data from Statistics Canada showed. U.S. crude prices rose 0.9% to $57.06 a barrel, buoyed by prospects of a U.S.-China trade deal. U.S. crude prices rose 0.9% to $57.06 a barrel, buoyed by prospects of a U.S.-China trade deal. The Canadian dollar was last trading 0.03% higher at 1.3153 to the greenback .Immediate resistance can be seen at 1.3193 (100 DMA), an upside break can trigger rise towards 1.3211 (50 DMA).On the downside, immediate support is seen at 1.3114 (9 DMA), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday, as growing signs the United States and China are inching closer to a trade deal boosted risk appetite. China is pushing U.S. President Donald Trump to remove more tariffs imposed in September as part of a “phase one” U.S.-China trade deal, which is expected to be signed later this month. At 1957 GMT, the dollar was 0.58 percent higher versus the Japanese yen at 109.20. Strong resistance can be seen at 109.30 (Higher BB), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.65 (11 DMA), a break below could take the pair towards 107.77 (50 DMA).
- European shares hit more than four-year highs on Tuesday, edging closer to record highs, driven by a rally in energy and commodity-linked stocks as U.S.-China trade-related optimism boosted risk appetite.
- The UK's benchmark FTSE 100 closed up by 0.25 percent, Germany's Dax ended up by 0.09 percent, and France’s CAC finished the day up by 0.39 percent.
- U.S. stocks took a breather on Tuesday, weighed down partially by losses in healthcare stocks, after a rally driven by hopes of a trade truce between Washington and Beijing propelled the three main indexes to record highs a day earlier.
- At (20:15 GMT) Dow Jones was up by 0.26 percent, S&P 500 was up by 0.01 percent, Nasdaq was up by 0.13 percent.
- U.S. Treasury yields rose on Tuesday on optimism that the United States and China will reach a deal to de-escalate their trade war, and before the Treasury Department will make the first sale of $84 billion in new coupon-bearing supply this week.
- Benchmark 10-year notes fell 15/32 in price to yield 1.839%, up from 1.788% late Monday.
- Gold fell on Tuesday as optimism over U.S.-China trade ties and fading fears of a recession buoyed European stocks, deflecting investors’ interest from the safe-haven metal.
- Spot gold slid 1.3% to $1,490.09 per ounce at 10:14 a.m. EDT (1514 GMT), which could be its biggest one-day percentage drop since end-September.U.S. gold futures were down 1.3% to $1,491.70.
- Oil prices rose more than 1% on Tuesday on hopes for a U.S.-China trade agreement and optimism that Washington could roll back some tariffs on Chinese imports.
- Brent crude futures rose 83 cents, or 1.3%, to settle at $62.96 a barrel. U.S. West Texas Intermediate (WTI) crude futures ended 69 cents, or 1.2%, higher at $57.23 a barrel.