This is what you need to know to trade today monday november 7:
Markets remain relatively calm at the start of the week as investors weigh the latest developments. Disappointing trade figures from China and fading optimism over China’s easing of coronavirus-related restrictions force market participants to take a cautious stance. Later in the session, the change in consumer credit for September will be the only data on the US economic docket. November Sentix Investor Confidence for the Eurozone will be seen for a further boost. Lastly, investors will pay close attention to comments from central bank officials.
In October, China’s trade surplus increased slightly to $85.15 billion from $84.74 billion, disappointing market forecasts of $95.95 billion. In annual terms, exports grew 7%, against analysts’ forecast of 14.8%, while imports increased 6.8%, slightly better than the market consensus of 6%. Previously, China reported 5,496 new locally transmitted COVID-19 cases on November 6. This figure marks the biggest one-day increase since May 2, when strict lockdown measures were introduced.
In early morning Europe, US stock index futures are trading lower with the Dollar Index holding on to small daily gains around 111.00. The 10-year US Treasury bond yield continues to move sideways above 4.1%.
After Friday’s impressive rebound, the EURUSD has entered a consolidation phase near 0.9950 early Monday. Officials at the European Central Bank continue to share their divergent views on the outlook for monetary policy, making it difficult for the shared currency to maintain its bullish momentum. The member of the Governing Council of the ECB and governor of the French central bank, François Villeroy de Galhau, told the Irish Times that they were not far from the neutral rate, beyond which the pace of rate hikes could be more flexible and slow. Meanwhile, data from Germany revealed that Industrial Production grew by 0.6% monthly in September. This reading was much stronger than the market expectation of a 0.8% contraction, but it did not help the Euro (EUR).
The GBPUSD It is struggling to consolidate last Friday’s gains and is trading in a tight channel slightly above 1.1300. Over the weekend, The Guardian reported that British finance minister Jeremy Hunt was preparing to announce up to 60 billion pounds ($67.82 billion) of tax hikes and spending cuts, including at least 35 billion pounds. pounds ($39.56 billion) in cuts. However, this headline does not seem to have a noticeable impact on the behavior of the British pound against its rivals.
The USDJPY has picked up some bullish momentum early on Monday and has advanced towards 147.50. The Bank of Japan will release the summary of views in the early hours of the Asian session on Tuesday.
The Prayed is staging a deep correction early Monday and is down 0.5% on the day at $1,667. On Friday, XAUUSD was up more than 3% and hit its highest level since mid-October at $1,682.
Having advanced to its strongest level in nearly two months at $21,500 on Saturday, Bitcoin lost nearly 2% on Sunday and continued to push lower early Monday. At the close of this edition, the BTCUSD it loses 0.5% on the day, and is trading above $20,800. Ethereum remained under modest bearish pressure over the weekend and erased all of its weekly gains. The ETHUSD it is moving sideways slightly above $1,500.
Source: Fx Street