Posted on: 02 December 2015, by: Pepperstone Support, category: Market Review
The day saw broad USD weakness, falling yields and strong gains in equities to start the month. US data released was on the softer side. ISM manufacturing came in very weak for November at 48.6 v 50.5 expected. Prices paid also came in weaker at 35.5 v 40.0.
AUD has traded through the .7300 resistance area, EUR is looking to test 1.0650 resistance, USDCAD was unable to get through 1.34, USDJPY continues to find support around 122.50 while NZD brushes against resistance ahead of .6700. Volumes were heavier in London trading but tapered off throughout the NY session.
Canadian GDP fell by -0.5%MoM in September v 0.0% expected. Cad was the only G10 ccy that underperformed against the USD.
Speculations on what Thursday’s ECB meeting may bring range from the the expected 20bps cut to the opnion that ECB will want to surpass these expectations regarding additional accommodations
Regional data for the EZ was positive. EZ manufacturing PMI was unrevised at 52.8 for November as expected. German unemployment fell by 13k v a 5k expected decrease.
UK manufacturing PMI fell to 52.7 in November missing the expected 53.6.
Swiss GDP was stagnant in the 3rd quarter versus an expected expansion of 0.2%. Manufacturing PMI fell to 49.7 in November v 50.8 expected.