The US Dollar (USD) appreciated significantly in the European trading session on Tuesday after rating agency Moody’s downgraded China’s credit outlook from stable to negative due to rising debt.
More US Dollar Strength comes from European Central Bank (ECB) member Isabel Schnabel, who said she is surprised by the substantial decline in inflation and no more interest-rate hikes are further needed.
XAUUSD price factors: Pressure building to Nonfarm Payrolls
• Rating agency Moody’s has issued a negative outlook for China, a downgrade from the previous “stable” label.
• European Central Bank (ECB) board member Isabel Schnabel said that she is surprised by the shere speed of decline in inflation in the Eurozone, and no further hikes should be needed. Schnabel is considered to be a hawk, which makes these comments even more important and signals a change in the stance and outlook of the ECB.
• At 18.45, the S&P Global Purchasing Managers Indices are expected:
1. The Services PMI is expected to stay stable from its preliminary reading at 50.8.
2. The Composite flash reading for November stood at 50.7.
• Chunky batch of data at 19:00 GMT:
1. The Institute for Supply Management (ISM) will release its November numbers:
2. Headline Services PMI for November expected to increase from 51.8 to 52.
3. Services Employment Index for October was at 50.2. No forecast.
4. Services New Orders Index for October was at 55.5. No forecast pencilled in.
5. Services Prices Paid for October was at 58.6. No forecast.
6. JOLTS Job Openings for October is expected to decline a little from 9.553 million to 9.3 million.
• Equities are bleeding severely this Tuesday with nearly all Asian equity indices down over 1%, with China’s leading indices down more than 2%. European equities are trading in the red, and US futures trade directionless.
• The CME Group’s FedWatch Tool shows that markets are pricing in a 97.5% chance that the Federal Reserve will keep interest rates unchanged at its meeting next week.
• The benchmark 10-year US Treasury Note steadies at 4.23%. Yields in Europe, on the other hand, are falling.
🟢 Crucial zones:
C: $2009/1985/1966
R: $2048/2069/2096
More US Dollar Strength comes from European Central Bank (ECB) member Isabel Schnabel, who said she is surprised by the substantial decline in inflation and no more interest-rate hikes are further needed.
XAUUSD price factors: Pressure building to Nonfarm Payrolls
• Rating agency Moody’s has issued a negative outlook for China, a downgrade from the previous “stable” label.
• European Central Bank (ECB) board member Isabel Schnabel said that she is surprised by the shere speed of decline in inflation in the Eurozone, and no further hikes should be needed. Schnabel is considered to be a hawk, which makes these comments even more important and signals a change in the stance and outlook of the ECB.
• At 18.45, the S&P Global Purchasing Managers Indices are expected:
1. The Services PMI is expected to stay stable from its preliminary reading at 50.8.
2. The Composite flash reading for November stood at 50.7.
• Chunky batch of data at 19:00 GMT:
1. The Institute for Supply Management (ISM) will release its November numbers:
2. Headline Services PMI for November expected to increase from 51.8 to 52.
3. Services Employment Index for October was at 50.2. No forecast.
4. Services New Orders Index for October was at 55.5. No forecast pencilled in.
5. Services Prices Paid for October was at 58.6. No forecast.
6. JOLTS Job Openings for October is expected to decline a little from 9.553 million to 9.3 million.
• Equities are bleeding severely this Tuesday with nearly all Asian equity indices down over 1%, with China’s leading indices down more than 2%. European equities are trading in the red, and US futures trade directionless.
• The CME Group’s FedWatch Tool shows that markets are pricing in a 97.5% chance that the Federal Reserve will keep interest rates unchanged at its meeting next week.
• The benchmark 10-year US Treasury Note steadies at 4.23%. Yields in Europe, on the other hand, are falling.
🟢 Crucial zones:
C: $2009/1985/1966
R: $2048/2069/2096
