Monday 4th December: European Open Briefing

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Monday 4th December: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 0.42 %, Shanghai Composite lost 0.30 %, Hang Seng gained 0.69 %, ASX 200 fell 0.07 %
  • Commodities: Gold at $1277.20 (-0.40 %), Silver at $16.39 (0.07 %), WTI Oil at $57.95 (-0.70 %), Brent Oil at $63.43 (-0.47 %)
  • Rates: US 10-year yield at 2.40, UK 10-year yield at 1.22, German 10-year yield at 0.31

News & Data:

  • (AUD) Company Operating Profits q/q -0.2 %vs 0.3 % expected
  • (USD) ISM Manufacturing PMI 58.2 vs 58.4 expected
  • (CAD) Unemployment Rate 5.9 % vs 6.2 % expected
  • (CAD) Employment Change 79.5 K vs 10.2 K expected
  • (CAD) GDP m/m 0.2 % vs 0.1 % expected
  • (GBP) Manufacturing PMI 58.2 vs 56.6 expected
  • Dollar gains on U.S. tax cut progress; Asian shares listless- RTRS

CFTC Positioning Data (Week ending Nov 28, 2017)

  • EUR long 90K vs 95K long last week.
  • GBP long 5K vs 1K short last week.
  • JPY short 110K vs 123K short last week
  • CHF short 30K vs 30K short last week.
  • CAD long 46K vs 45K long last week
  • AUD long 39k vs 40K long last week. 
  • NZD short 14K vs 14K short last week

Markets Update:

Asian – Pacific markets were mostly mixed on Monday morning while the dollar, yields and U.S. equity-index futures rallied as investors digested news that the U.S. Senate narrowly passed an important tax bill in the early hours of Saturday and the special counsel’s probe of President Donald Trump’s election campaign.

EURUSD had a rather quiet session early on Monday currently seen trading around 1.1865 as the EUR lost 0.2 percent against the US Dollar.  The dollar rose against all major peers on Monday in Asia, The dollar index, which tracks the dollar against a basket of currencies was up 0.3 percent and is currently valued at 93.18. The yield on 10-year Treasuries rose four basis points to 2.40 percent, reversing a decline on Friday.

The Australian Dollar weakened over 0.2 percent against the US Dollar from session highs of 0.7607 to current levels of 0.7593. Meanwhile, Australia’s 10-year yield rose one basis point to 2.55 percent.  The New Zealand dollar followed a similar price action on Monday and is currently trading around 0.6843 as the kiwi lost over 0.6 percent against the USD.

USDJPY took out Friday’s high reaching the highest since Nov. 17 but has since consolidated within a 25 pip range. Currently the Yen is seen trading around 112.87 per US dollar as the JPY slid 0.6 percent against the USD, a welcome reprieve to dollar bulls after three straight sessions of losses. Japan's Nikkei 225 declined 0.4 percent

Upcoming Events:

  • ALL Day — Eurogroup Meetings
  • 08:00 GMT – (EUR) Spanish Unemployment Change
  • 09:30 GMT – (GBP) Construction PMI
  • 15:00 GMT – (USD) Factory Orders m/m
  • & More…

The Week Ahead:

Tuesday, December 5th

  • 00:15 GMT – (NZD) RBNZ Gov Spencer Speaks
  • 00:30 GMT – (AUD) Current Account
  • 00:30 GMT – (AUD) Retail Sales m/m
  • 01:45 GMT – (CNY) Caixin Services PMI
  • 03:30 GMT – (AUD) Cash Rate
  • 03:30 GMT – (AUD) RBA Rate Statement
  • 09:30 GMT – (GBP) Services PMI
  • 13:30 GMT – (CAD) Trade Balance
  • 13:30 GMT – (USD) Trade Balance
  • 15:00 GMT – (USD) ISM Non-Manufacturing PMI
  • & More…

Wednesday, December 6th

  • 00:30 GMT – (AUD) GDP q/q
  • 13:15 GMT – (USD) ADP Non-Farm Employment Change
  • 13:30 GMT – (CAD) Labor Productivity q/q
  • 15:00 GMT – (CAD) BOC Rate Statement
  • 15:00 GMT – (CAD) Overnight Rate
  • 15:30 GMT – (USD) Crude Oil Inventories
  • & More…

Thursday, December 7th

  • 00:30 GMT – (AUD) Trade Balance
  • 08:30 GMT – (GBP) Halifax HPI m/m
  • 13:30 GMT – (CAD) Building Permits m/m
  • 13:30 GMT – (USD) Unemployment Claims
  • 15:00 GMT – (CAD) Ivey PMI
  • 16:00 GMT – (EUR) ECB President Draghi Speaks
  • 23:50 GMT – (JPY) Final GDP q/q
  • & More…

Friday, December 8th

  • Tentative –(CNY) Trade Balance
  • 00:30 GMT – (AUD) Home Loans m/m
  • 09:30 GMT – (GBP) Manufacturing Production m/m
  • 09:30 GMT – (GBP) Goods Trade Balance
  • 13:30 GMT – (USD) Average Hourly Earnings m/m
  • 13:30 GMT – (USD) Non-Farm Employment Change
  • 13:30 GMT – (USD) Unemployment Rate
  • 15:15 GMT – (USD) Prelim UoM Consumer Sentiment
  • & More…

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