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The markets were steady as investors digest the Friday US Jobs data. The US dollar was slightly lower ahead of US PMI data later in the New York session. A better-than-expected reading could underpin a further monetary tightening by the Fed. The UK economy remains in a contractionary region despite a recovery of confidence in the forex market. Oil markets experienced a rebound as OPEC+ sticks to production cuts ahead of Russian oil price caps. The RBA and BoC are set to hike rates later during the week.
USDJPY rose by +0.86% from a 3-months low following better-than-expected Jobs data on Friday. The November Non-Farm payrolls rose to 263K vs the 200K anticipated. The Average Hourly earnings YoY data rose to 5.1% vs 4.6% forecasted underpinning a strong labour market. The Japanese Yen suffered selling pressure as Fed tightening sentiments gets cemented by a strong labour market in the US. The pair bounced off a 134.00 level, near-term support and upside gains are capped by the 136.00 level.
EURGBP surged by +0.30% as ECB speakers doubles down on further tightening at the December policy meeting. ECB’s Villeroy echoed his support for a 50bps hike amid soaring inflation. The hawkish comments from ECB’s Lagarde outweighed mixed PMI data from the Eurozone. The Pound was under pressure following PMI indicating the economy remains in a contraction zone. The Services PMI data remained the same at 48.8 while Composite PMI for November fell to 48.2 vs the 48.3 estimated. The pair rallied from the 0.8570 level, a 4-months low and near-term targets are at the 0.8650 level.
AUDCAD dropped by -0.24% as a rebound in the oil markets boosted the Canadian dollar. The OPEC+ group agreed to stick to its existing policy of reducing oil production ahead of Russian oil price caps. The Canadian unemployment rate released on Friday helped lift sentiment ahead of the BoC rate hike later this week. The Australian dollar was downbeat as Company Gross Operating Profits fell to -12.4% against 7.8% previous in Q3 indicating a deteriorating economic outlook. The pair took a breather falling from the 0.9180 level towards the 0.9100 support level. Traders shift focus to the RBA rate decision early Tuesday morning.
European stocks were largely lower as traders maintain a cautious outlook after Eurozone PMI data. The DAX fell by -0.45% as the 14550-resistance level continues to hold and the index could retrace towards the 33700 level. CAC40 sank by -0.10% and critical levels to watch out for are 6800 resistance and 6700 support. FTSE100 rallied by 0.41% after bulls bounced off a 7500 level and upside gains are capped by the 7650 level.
US stock futures maintain a steady outlook as Traders reassess US Jobs data. S&P500 futures edged lower by -0.07% as bulls remain capped by the 4100 near-term resistance and the 4000 level is the key support to the downside. Nasdaq100 futures was up by +0.02% despite trading activity capped between the 12000 resistance and 11600 support level. A break above the 12000 could trigger buying pressure towards the 12200 level. DJIA index futures were slightly lower by -0.10% as bulls retracted from the 34600 level and 33700 remains a near-term target.
Gold gave in earlier gains ahead of Key US economic data and the Chinese reopening optimism. The yellow metal dropped by -0.13% as bulls struggle to hold on to gains above the 1800 psychological level. A trade below 1800 could cause further losses towards the 1780 level, a previous resistance-turned-support.
