Americas Roundup: Euro Weakens Vs Dollar As Comments from ECB s Draghi Weigh, Gold falls Back Toward Near Six-Year Lows-November

Market Roundup

  • USD rebounds but EM recovery largely intact in Latin America.
  • Fed officials keep rate-hike talk going.
  • Dudley says Fed should ‘soon’ be ready to raise rates.
  • Bullard: Fed will want more uncertainty on rates after hike.
  • Canada retail sales unexpectedly drop inflation steady.
  • Mexico GDP beats forecast, Carstens sees “more vigorous” growth ahead.
  • Brazil sheds 169k jobs in October as recession worsens.

Looking Ahead – Economic Data (GMT)

  • No Significant Data

Looking Ahead – Events, Other Releases (GMT)

  • Sat SF Fed Williams, ECB Coeure at UC Berkeley conference.
  • Sun US Commerce Secretary Pritzker, USTR Froman in Guangzhou, China

Currency SummariesEUR/USD is likely to find support at 1.0613 levels and currently trading at 1.0649 levels. The pair has made session high at 1.0705 and hit lows at 1.0668 levels. The euro slipped sharply against the dollar on Friday after making gains for two consecutive days, weighted down by comments from European Central Bank chief Mario Draghi who expressed willingness to add more stimulus to the euro zone economy to raise inflation. Draghi on Friday said that the ECB would do whatever it takes to raise inflation as fast as possible, and pointed to the benefits of a cut in deposit rates to aid an expansion of its quantitative easing programme of bond-buying. By mid-morning trading, the euro fell 0.3 percent against the dollar to $1.0695 and was down 0.4 percent versus the yen at 131.30 yen The euro, which earlier slipped back below $1.07 against the dollar, was down nearly three percent so far in November, on pace for its worst month performance since March. To the upside, immediate resistance can be seen at 1.0680 To the downside, immediate support level is located at 1.0630 levels.GBP/USD is supported in the range of 1.5166 and currently trading at 1.5194 levels. It reached session high at 1.5254 and hit low at 1.5184 levels. Sterling declined sharply against dollar on Friday, as investors broadly sold the pair after European Central Bank bolstered expectations of further easing in the near term. Mario Draghi said on Friday the ECB was ready to act quickly to boost anaemic inflation in the euro zone, highlighting changes to its asset purchase programme and deposit rate as possible tools. These comments gave hints that ECB is more likely go for announce more stimulus in the next meeting in Dec. In contrast to the euro zone monetary policy outlook, in the UK, investors are betting the Bank of England will raise rates, perhaps in the second half of 2016. That has kept the yield gap between the two-year UK gilt and its German counterpart around its widest in nearly eight years and underpinned the pound. Against a dollar that sterling slipped lower weighed down by the euro’s weakness, sterling fell 0.6 percent to $1.5197uring the late hours of US session. The minutes of the latest meeting of the Federal Reserve’s Open Market Committee (FOMC) released on Wednesday reinforced the view that U.S. interest rates will be raised in December. To the upside, immediate resistance can be seen at 1.5221. To the downside, immediate support level is located at 1.5150 levels.AUD/USD is supported around 0.7173 levels and currently trading at 0.7235 levels. It to hit session high at 0.7249 and made session lows at 0.7222 levels. The Australian dollar edged higher against US dollar on dollar Friday as a spike in risk appetite sparked a wave of short covering. The Australian dollar stood at $0.7194, having rallied 1.1 percent on Thursday. It has gained 1 percent for the week, having proved resilient to sliding commodity prices, particularly iron ore, Australia’s top export earner. The Australian dollar paused at $0.7194, having rallied 1.1 percent on Thursday. It has gained 1 percent for the week, having proved resilient to sliding commodity prices, particularly iron ore, Australia’s top export earner. The common currency has dropped 3.3 percent so far in November and if sustained, it would be the biggest monthly fall in over a year. To the upside, immediate resistance can be seen at 0.7250. To the downside, immediate support level is located at 0.7223 levels.USD/CAD is supported at 1.3243 levels and is trading at 1.3337 levels. It has made session high at 1.3348 and lows at 1.3267 levels. The Canadian dollar weakened against the U.S. dollar on Friday, after Canadian retail sales declined but CPI printed slightly better figures. The Canadian dollar immediately after the data release weakened and started to inch higher as the market appeared to react to the negative retail sales data. Retail sales unexpectedly fell 0.5 percent in September to C$43.3 billion ($32.5 billion), dragged down by lower fuel prices and slower auto sales, data from Statistics Canada showed on Friday. Meanwhile, Canada’s annual inflation rate held at 1.0 percent in October as lower energy prices moderated higher food prices. The annual core inflation rate, was 2.1 percent, slightly firmer than the 2.0 percent median prediction of analysts. The currency’s strongest level of the session was C$1.3269, while its weakest was C$1.3347. To the upside, immediate resistance can be seen at 1.3300. To the downside, immediate support level is located at 1.3266 levels.Equities RecapEuropean shares closed down on Friday by hitting to three-month highs, helped by comments by  ECB on more stimulus.UK’s benchmark FTSE 100 closed up by 0.7 percent, the pan-European FTSEurofirst 300 ended the day up by 0.22 percent, Germany’s Dax ended up by 0.33 percent, France’s CAC finished the day down by 0.08 percent.US stocks ended higher on Friday, with healthcare and consumer stock rising and investors looking beyond a widely-expected December interest rate hike.Dow Jones closed down by 0.52 percent, S&P 500 ended down by 0.38 percent, Nasdaq finished the day down by 0.61 percent.Treasuries RecapU.S. Treasuries prices declined on Friday in choppy trading, with rising U.S. stock prices reducing the appeal of lower-yielding government debt as investors grew confident that a rate hike Federal Reserve would not affect corporate profits.Benchmark 10-year Treasuries were down 5/32 in price for a yield of 2.264 percent, up 2 basis points from late on Thursday.The 30-year bond was down 11/32 in price to yield 3.021 percent, up about 2 basis points from Thursday, while the five-year note  was down 2/32 in price to yield 1.688 percent, up 2 basis points.Commodities RecapBrent oil settled 1 percent higher on Friday on pre-weekend short-covering, while U.S. crude settled lower but just above the $40-per-barrel support it has struggled to defend after a surge in inventories.Brent futures ended up 48 cents at $44.66 a barrel. It rose to as high as $45.50 during its late rally.U.S. crude’s West Texas Intermediate (WTI) December futures expired on Friday down 15 cents at $40.39 after hitting a low of $38.99, the cheapest since Aug. 27.Gold slipped lower on Friday, ending two straight session gains from the lowest level in nearly six years, on the firm dollar and comments from a Federal Reserve policy maker who said the U.S. central bank should “soon” be ready to raise interest rates.Spot gold was down 0.5 percent at $1,076.40 an ounce at 2:38 p.m. EST (1938 GMT), while U.S. gold futures for December delivery settled down $1.60 an ounce at $1,076.30. The metal is set to end the week down a shade after prices jumped 1.1 percent on Thursday.

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Tagged with:

  Symbol Bid Ask Spread
EURUSD 1.23600 1.23620 2
  Symbol Bid Ask Spread
GBPUSD 1.42100 1.42130 3
  Symbol Bid Ask Spread
USDJPY 107.360 107.380 2
  Symbol Bid Ask Spread
EURGBP 0.86970 0.87000 3
  Symbol Bid Ask Spread
EURCHF 1.19900 1.19930 3

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