Market Update – November 25 – Record Daily Covid Cases in China Punctures Sentiment

The USD Index holds at 9-day lows above the key 105.50 at 105.67 today, following the FED mins on Wednesday. US 10yr Yields lower (-1.39% at 3.66%) Asian Stocks also lower  (Nikkei -0.35%, Hang Seng -0.30%).

JPY Tokyo CPI leaps to 3.8% from 3.5%,
NZD Retail Sales much better at 0.4% vs -2.3%
Germany – final reading of Q3 GDP beats too at 0.4% vs 0.3% but GfK missed at -40.2 with expectations of -39.6.

Chinese Covid cases hit a new record daily high of 32,695 local infections on Thursday. Reported cases are widespread across the country and in major industrial, commercial and manufacturing centres.
EUR – declined from an 8-day high at 1.0448, back under 1.0400, but has since recovered to 1.0420.   
JPY – eased all the way down to 138.00 zone and a 7-day low, from over 142.20 on Monday. A rally today was capped at 139.00 and the pair now trade at 138.60. 
GBP – Sterling continued to rally on the weaker USD breaking & breaching 121.00 to top at 121.50 yesterday. Holds the 121.00 level today.
Stocks – Wall Street closed for Thanksgiving – Open later on Friday for half day trading – US500 +23.68 (+0.59%) 4027 on Wednesday  FUTS trades at 4042 now. 

USOil – Lifted from 2-mth lows at $77.50 to $78.40 now, following reports that Saudi & Iraq are “promising market stability” & the G7 proposed price cap is higher than expected. 
Gold – Tested up $1760 before slipping to $1753 and holding the key $1750 level.     
BTC Sentiment woes continue, but rallied to $16.8k yesterday before cooling to $16.4k now. 

Today – all done except a speech from ECB’s De Guidos.


Biggest FX Mover @ (07:30 GMT) AUDCHF (+0.27%) continued to recover from a test of 0.6300 earlier this week. Trades at 0.6395 now, testing 0.6400. MAs aligning higher, MACD histogram & signal line positive but colling,  RSI 64.70 & rising,  H1 ATR 0.00078, Daily ATR 0.00668.

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Stuart Cowell

Head Market Analyst

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