The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the JPY. On the US economic data front, Markit's US Manufacturing Purchasing Managers' Index remained at 56.7 on month in the November final reading (as expected), in line with the November preliminary reading. Finally, Construction Spending rose 1.3% on month in October (+0.8% expected), compared to a revised -0.5% in September.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending November 27th is expected. Automatic Data Processing's Employment Change for November is expected to show that 430K jobs were added on month, compared to 365K jobs added in October. Finally, the Federal Reserve's Beige Book is expected.
The Euro was bullish against all of its major pairs. In Europe, Research firm Markit has published final readings of November Manufacturing PMI for the Eurozone at 53.8 (vs 53.6 expected), for Germany at 57.8 (vs 57.9 expected), for France at 49.6 (vs 49.1 expected) and for the U.K. at 55.6 (vs 55.2 expected). Separately, the European Commission has posted Eurozone's November CPI at -0.3% on month (as expected). Furthermore, the German Federal Statistical Office has posted November jobless rate at 6.1% (vs 6.3% expected). Also, OECD sees 2020 Euro Area GDP at -7.5% (vs -7.9% previously) and at +3.6% in 2021, vs +5.1% previously. It sees U.S. GDP at -3.7% in 2020, vs -3.8% previously, and at +3.2% in 2021, vs +4% previously. World GDP is expected at -4.2% in 2020, vs -4.5% previously, and at +4.2% in 2021, vs +5% previously.
The Australian dollar was bearish against most of its major pairs with the exception of the JPY and USD.
Tuesday's largest gainer was the EURUSD which rallied 146 pips. From a technical perspective, the pair broke above a consolidation in place since July. As long as 1.20 acts as support, look for a continuation of the uptrend towards our next target resistance level of 1.2265 and 1.2415 in extension. A break below 1.20 could pressure the pair back into a consolidation.
Source: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.