The financial calendar will leave more questions than answers on Monday, as a dearth of economic data keeps investors fixated on geopolitics and President Trump’s push for tax reform. The calendar will feature more noteworthy events as the week progresses.
Action begins in Europe on Monday with the release of Swiss employment data at 08:15 GMT. The report will provide a quarterly snapshot of employment growth in Switzerland.
Later in the morning, the Italian government will release the consumer confidence index for November. The monthly gauge is a proxy for consumer spending, which is a major driver of the domestic economy. Separately, a government report on business confidence will also make headlines.
In terms of monetary policy, the European Central Bank (ECB) will release its biannual Financial Stability Review at 09:00 GMT. The report provides a detailed discussion of the possible sources of risks and vulnerability throughout the region.
The ECB will hold its next Governing Council meeting in Frankfurt on 14 December.
Shifting gears to the United States, the National Association of Realtors (NAR) will report on new home sales for the month of October. The report, which hits the newswires at 15:00 GMT, is expected to show a broad decline in new home sales last month. Sales skyrocketed 18.9% in September to a seasonally adjusted 667,000.
Later in the day, the Federal Reserve Bank of Dallas will release the manufacturing business index for the month of November. The monthly indicator provides an assessment of the state’s manufacturing activity, which provides key input into other indicators. Texas is one of America’s most economically powerful states.
In currencies, the US dollar index edged slightly higher on Monday, but remained in a firm downtrend extending all the way back to the start of the month. The DXY basket is currently trading at multi-month lows.
EUR/USD
Europe’s common currency lost ground against the dollar on Monday, but traded well above 1.1900 US. The EUR/USD faces immediate resistance at 1.1943, which is the high from 22 September. On the flipside, immediate support is located at 1.1880.
GBP/USD
Cable was down at the start of the week, but continued to hold above the critical 1.3300 level. GBP/USD has been on a sharp upward trajectory extending back several weeks. The pair faces immediate support at 1.3280. On the other side, 1.3370 represents the first resistance level.
USD/JPY
The USD/JPY edged slightly lower on Monday, but continued to hover well above the 111.00 mark. The pair is currently trading at 111.37, with immediate resistance located at the 100 and 200 DMAs near 111.60. On the other side of the ledger, support is located near the 111.00 psychological zone.
