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Europe Roundup: Sterling consolidates above 1.3300 as central bank eyed, European shares gain, Gold gains, Oil climbs over 2% ahead of OPEC meeting amid Omicron concerns-December 1st,2021

Posted at 01 December 2021 / Categories Market Roundups


Market Roundup

•German Oct Retail Sales (MoM)  -0.3%,1.0% forecast,-2.5% previous

• German Oct Retail Sales (YoY) -2.9%,-2.0% forecast, -0.9% previous

•UK Nov Nationwide HPI (MoM) 0.9%, 0.5% forecast, 0.7% previous

•UK Nov Nationwide HPI (YoY) 10.0%, 9.3% forecast, 9.9% previous

•Swiss Nov CPI (YoY ) 1.5%,1.4% forecast, 1.2% previous

•Swiss Nov CPI (MoM) 0.0%,  -0.1% forecast, 0.3% previous

•Italian Nov Manufacturing PMI 62.8, 61.1 forecast, 61.1 previous

•French Nov Manufacturing PMI  55.9,54.6 forecast, 54.6 previous

•German Nov  Manufacturing PMI  57.4,57.6 forecast, 57.6 previous

•EU Nov Manufacturing PMI 58.4, 58.6 forecast, 58.6 previous

•UK Nov Manufacturing PMI  58.1, 58.2 forecast, 58.2 previous

Looking Ahead Economic Data (GMT)

•13:15   US Nov ADP Nonfarm Employment Change  525K forecast, 571K previous

•13:30   Canada Oct Building Permits (MoM)  -1.0% forecast, 4.3% previous

•14:30   Canada Nov Manufacturing PMI  57.7 previous

•14:45 US Nov Manufacturing PMI  59.1 previous

•15:00 US Oct Construction Spending (MoM)  0.4% forecast, -0.5% previous

•15:00 US Nov  ISM Manufacturing PMI  61.0 forecast, 60.8 previous

•15:00 US ISM Manufacturing Employment   52.0 previous

•15:30 US Crude Oil Inventories -1.237M forecast, 1.017M previous

•15:30 US Cushing Crude Oil Inventories 0.787M previous

Looking Ahead - Events, Other Releases (GMT)

•14:00 UK BoE Gov Bailey Speaks

•15:00 US Fed Chair Powell Testifies

Fxbeat

EUR/USD: The euro dipped against dollar on Wednesday after data showed German factory activity in November dipped. Supply chain problems held back growth in German manufacturing activity for the fourth month running in November, a survey showed on Wednesday, supporting expectations for a weak final quarter for factories in Europe's largest economy.IHS Markit's final Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of Europe's largest economy, fell to 57.4 in November, down from 57.8 in October and the lowest in 10 months. Immediate resistance can be seen at 1.1400(21DMA), an upside break can trigger rise towards 1.1450(61.8%fib).On the downside, immediate support is seen at 1.1286 (38.2 % fib), a break below could take the pair towards 1.1185(23.6%fib).

GBP/USD: The British pound inched higher on Wednesday but held near a 2021 low versus the U.S. dollar as doubts grew on whether the Bank of England will raise interest rates at a policy meeting this month. The BoE said in November it would probably have to raise rates from its all-time low of 0.1% "over the coming months", but policymakers have sounded increasingly divided on this prospect after a new coronavirus variant was detected. Sterling edged 0.2% higher to $1.33 after falling briefly below $1.32 to a fresh 2021 low in volatile trading on Tuesday.Immediate resistance can be seen at 1.3316(5DMA), an upside break can trigger rise towards 1.3366(38.2%fib).On the downside, immediate support is seen at 1.3285 (23.6%fib), a break below could take the pair towards 1.3204(Daily low).

USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as risk appetite returned to markets, but uncertainty over the impact of the Omicron coronavirus variant was expected to keep investors on edge. The other main issue top of investors' minds was the speed at which the U.S. Federal Reserve will taper its massive stimulus programme, and when it will hike interest rates. On Tuesday, Powell said U.S. central bankers in December will discuss whether to end their bond purchases a few months earlier than had been anticipated. Immediate resistance can be seen at 0.9208 (38.2% fib), an upside break can trigger rise towards 0.92340(Ichimoku Cloud top).On the downside, immediate support is seen at 0.9172(50%fib), a break below could take the pair towards 0.9136(61.8%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as dollar found support in renewed expectations for interest rates hikes . U.S. central bankers in December will discuss whether to end bond purchases a few months earlier than expected, Federal Reserve Chair Jerome Powell said, pointing to a strong economy, stalled workforce growth and high inflation that is expected to last into mid-2022. The dollar index rose 0.03% to 95.997 at 0920 GMT, after it registered its strongest month since June, despite volatility triggered by Omicron. Strong resistance can be seen at 113.67 (23.6% fib), an upside break can trigger rise towards 114.00 (Psychological level).On the downside, immediate support is seen at 113.13(38.2%fib), a break below could take the pair towards 112.59(50%fib).

Equities Recap

European stocks rose on Wednesday as bargain hunters returned after a rough November, lifting sectors such as travel, oil and mining that were battered by fears about the Omicron coronavirus variant upending economic activity.

At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.44 percent, Germany's Dax was up by 1.68 percent, France’s CAC finished was up  by 1.57 percent.

Commodities Recap

Gold rose on Wednesday, as softer bond yields and uncertainty about economic growth due to the Omicron variant of coronavirus lifted its appeal.

Spot gold rose 0.3% to $1,778.56 per ounce by 0840 GMT. U.S. gold futures rose 0.2% to $1,780.60.

Oil prices rose more than 2% on Wednesday, recouping some of the steep losses from the previous session, as major producers prepared to discuss how to respond to the threat of a hit to fuel demand from the Omicron variant.

Brent crude futures rose $1.90, or 2.7%, to $71.13 a barrel at 0504 GMT, after a 3.9% slump on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures rose $1.71, or 2.6%, to $67.89 a barrel, after a 5.4% drop on Tuesday.


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