Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

US Dollar Broadly Lower Amid Mixed Data

Published 25/11/2015, 09:30 pm
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
US500
-
DJI
-
DE40
-
JP225
-
HK50
-
IXIC
-
FTXIN9
-
KS11
-
STOXX
-
TOPX
-

Market Brief

European stocks were caught in the crossfire yesterday due to mounting geopolitical tensions as Turkey took down a Russian warplane near the Syrian border. The DAX lost as much as 2% before partially erasing early day losses. The German index ended up the day down 1.43%. The broader Euro Stoxx 600 followed roughly the same pattern, losing as much as 2.04% and ending the day down 1.20%. In the US, economic data came in broadly mixed yesterday as the third quarter GDP was revised higher to 2.1%q/q (annualised) from 1.5% as expected. However, personal consumption came in on the soft side, printing at 3% versus 3.2% median forecast and first estimate. Finally, consumer confidence fell to 90.4 in November after a reading of 99.1 in October as American people’s confidence in the job market erodes. While on the equity side, the Turkey-Russia incident did not do too much damage to Wall Street as all three main equity indices end up the day in positive territory with the S&P 500, the Dow Jones and the Nasdaq up 0.12%, 0.11% and 0.01% respectively.

G10 Advancers and Global Indexes

In Germany, the IFO business climate index surprisingly jumped to 109 in November, the highest level since July 2014, from 108.2 in the previous month. The German economy seems to have weathered the end of summer slump pretty well and the outlook looks great especially given the fact that the weaker euro will provide an extra boost to the economy. The single currency recovered in the Asian session and rose 0.32% versus the dollar, bringing EUR/USD back above the 1.0650 threshold. However, we still believe that there is further room for euro depreciation.

In Asia, regional equity indices were broadly lower with the exception of mainland Chinese markets, which were able to report gains. The Shanghai and Shenzhen Composite were up 0.88% and 1.89% respectively. In Japan, the Nikkei fell 0.39%, while the broader Topix index dropped 0.70%. Elsewhere, Hong Kong’s Hang Seng was down 0.50%, South Korea’s Kospi fell 0.34%, while in Singapore stocks retreated 1.02%.

In Australia, skilled vacancies rose 0.6%m/m in October, down from a revised increase of 1.1% in September. AUD/USD’s positive trend is gaining momentum as Governor Stevens declared that the RBA was pretty comfortable with the state of its current monetary policy. A cut in the cash rate is therefore not on the cards. After successfully validating a break of its 50dma, AUD/USD is now heading toward its 200dma standing at 0.7482 for the moment. The closest resistance can be found at 0.7382 (high from October 12th), while on the downside, a support lies at 0.7017 (low from November 8th and 20th).

Today traders will be watching PPI from Sweden; unemployment rate from Norway; industrial orders and retail sales from Italy; MBA mortgage application, personal income and spending, durable goods orders, Markit composite and services PMI, new home sales and Michigan sentiment index from the US; trade balance from New Zealand; interest rate decision from Brazil (BCB expected to stay on hold).

Today's Calendar

Currency Tech
EUR/USD
R 2: 1.1387
R 1: 1.1095
CURRENT: 1.0674
S 1: 1.0458
S 2: 1.0000

GBP/USD
R 2: 1.5659
R 1: 1.5529
CURRENT: 1.5095
S 1: 1.5027
S 2: 1.4566

USD/JPY
R 2: 135.15
R 1: 125.86
CURRENT: 122.30
S 1: 120.07
S 2: 118.07

USD/CHF
R 2: 1.0676
R 1: 1.0240
CURRENT: 1.0151
S 1: 0.9739
S 2: 0.9476

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.