Market Update – November 29 – Tightening Tilt, COVID control & Month End flows

The USDIndex rallied to 106.70 in the previous session but formed a correction in Asia session to 106.00 ahead of a COVID-19 press briefing in China that is spurring hopes of a potential easing in the country’s strict pandemic restrictions.
Fed Officials Signal Higher rates: Hawkish reminders from key Fed officials Williams, Bullard, and Brainard that rates will have to go higher helped weigh on the markets in Monday action. Wall Street was weaker overnight on the back of Williams’s and Bullard’s comments, and slipped further as Brainard tripled down on the rate outlook.
US houses prices fall like 2008
Stocks – Global stocks rise after yesterday’s dip. US100 and US500 dropped -1.58% and 1.54%, respectively, with the US30 off -1.45% amid broadbased weakness. Today however the rumours of an earlier easing of strict COVID-19 restrictions along wihth vaccination for over 80-year old, found buyers in stock market with Chinese stocks rebound. Hang Seng and CSI 300 bounced 4% and 3% respectively. ASX and Nikkei closed narrowly mixed. GER40 and UK100 futures are up 0.5% and 0.4% respectively.
EUR – reversed from 5-month peak. Currently at 1.0360. ECB’s Lagarde said overnight that inflation had not peaked and it risked turning out even higher than currently expected, hinting at a series of interest rate hikes ahead.
JPY along with Yuan, Aussie and Kiwi on bid.
GBP – turns again below 1.20 at 1.1987.
USOil – jumps to 80.00 as China refines its approach for dealing with protest and Covid control. All eyes are on OPEC+ meeting in the weekend. EU fails to agree on Russian oil price cap once again.
Gold – fully recovered yesterday’s losses, currently at$1754.

Today – Swiss GDP, German HICP , Canadian Q3 GDP, US Consumer Confidence and BOE Governor Bailey speech.

Biggest FX Mover @ (07:30 GMT) NZDUSD(+1.10%), bounces to 0.6235. MAs aligning higher and RSI at 63 but MACD histogram & signal line remain below 0. H1 ATR 0.00147, Daily ATR 0.00962.

Click here to access our Economic Calendar

Andria Pichidi

Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.