The Reserve Bank of India and the government have been sparring publicly over how much capital the central bank needs and how tough its lending rules should be. “The setting up of a committee to examine reserves management does not automatically mean reserves will be utilized by the government, thus alleviating some market fears,” said Mitul Kotecha, senior emerging markets strategist at TD Securities in Singapore. “The RBI appears to have gone some, albeit not all the way, towards appeasing the government in its demands,” Kotecha said.
Political uncertainty is emerging as the key risk as Prime Minister Narendra Modi is seen facing a tough electoral battle in some major states ahead of the national vote in 2019. The rupee rose Tuesday, after the Reserve Bank of India agreed to form a panel to study a government demand for a part of its capital, ending a brawl that’s dented investor confidence. “Political jitters amid state elections will be the key headwind for further rupee appreciation, while the economic factors aside from inflation haven’t been rupee friendly,” said Prakash Sakpal, economist at ING Groep NV in Singapore.
CRYPTOWATCH Bitcoin prices tumbled further on Monday, reaching their lowest level since October 2017. Coming off a week that saw the world’s largest digital currency plummet through $6,000, bitcoin has shed another 10% on Monday, falling below $5,000 to an intraday low of $4,749.
Investing.com – The dollar fell against its rivals Monday after soft housing data pointed to a continued slowdown in the U.S. housing market.
It got heated in Papua New Guinea over the weekend, where Asia-Pacific Economic Cooperation nations met to show the world how disruptive the U.S.-China trade dispute really is.
Deep divisions on trade between Washington and Beijing were evident at the Asia-Pacific Economic Cooperation summit, with leaders on Sunday failing to agree on a communique for the first time in their history. U.S. Vice President Mike Pence said in a blunt speech on Saturday that there would be no end to U.S. tariffs on $250 billion of Chinese goods until China changed its ways. "The Canadian dollar is still very much leveraged to global demand," said Bipan Rai, North America Head, FX strategy at CIBC Capital Markets.
The National Association of Home Builders’ monthly confidence index dropped to 60 in November, compared with 68 in the previous month, leading the buck to extend its losses versus rivals. The greenback had already traded rather muted earlier in the day, adding on from Friday’s weakness that came on the coattails of comments by Federal Reserve Vice Chairman Richard Clarida. In an interview with CNBC, Clarida Friday offered a more dovish view on the Fed’s monetary policy normalization path, and warned of a slowing global economy.
European markets squander early gains and end lower on Monday amid nagging political worries and a slide in shares of a key auto maker.
London’s main stock index Monday closes lower to start the week as the British pound firmed with the vagaries of politics around Brexit.
Investing.com - The dollar continued lower on Monday, adding to last Friday’s losses but hovering about the dollar index's 96 psychological handle, as investors reevaluated the future pace of interest rate hikes.
Investing.com - Cryptocurrencies traded lower across the board on Monday, with Bitcoin hitting a 13-month low, as regulatory actions continued to put downward pressure on digital coins despite positive news out of Switzerland.
The US equity market was indicated to open with a small loss in early Monday. EU indices were flat to up at midday as Brexit hopes to provide support. Asian market was mostly higher despite a bombshell allegation against Nissan Chairperson Carlos Ghosn.
Investing.com - U.S. futures pointed to a slightly lower open on Monday, as investors continued to monitor developments on trade, after President Donald Trump said he may not impose more tariffs on China.The S&P 500 futures fell 7 points or 0.27% to 2,735.5 as of 6:37 AM ET (11:37 GMT) while Dow futures were down 62 points, or 0.24%, to 25,389.0. Meanwhile tech heavy Nasdaq 100 futures decreased 19 points, or 0.28%, to 6,875.75. ...
The currencies of Brazil and Mexico weakened on Monday despite the dollar dropping to two-month lows, as concerns of a slowdown in global growth and simmering U.S.-Chinese trade tensions clouded sentiment. The U.S. Federal Reserve policymakers signaled rate increases ahead but also sounded more concerned about a potential global slowdown, leading markets to suspect the central bank's tightening cycle may not have much further to run. This sent U.S. Treasury yields and the dollar lower.
Based on the early price action, the direction of the December Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the longer-term uptrending Gann angle at $1220.30.
The world’s first multi-crypto Exchange Traded Product will officially trade next week on Switzerland’s Principal stock Exchange – the SIX Swiss Exchange. Amun ETP’s approval by SIX The SIX Swiss Exchange has approved the world’s first crypto-based Exchange Traded product (ETP) to trade on its platform. The new ETP will index the five leading cryptos […] The post World’s First Cryptocurrency Exchange Traded Product to Launch in Switzerland appeared first on Market Exclusive.
Based on the early trade, the direction of the AUD/USD is likely to be determined by trader reaction to the main Fibonacci level at .7307. We could see below average volume today because it is a U.S. holiday-shortened week. Several of the major players may decide to sit this one out. Furthermore, the RBA minutes are coming out early Tuesday and no one really wants to step in front of this news.
Based on the current price at 1.1422, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at 1.1416 and 1.1421. Basically, we’re expecting the upside bias to continue on a sustained move over 1.1421 and for a downside bias to begin on a sustained move under 1.1416.
Last week, Powell highlighted the growth of volatility in the global financial markets, the fading effect of tax reform, as well as the decline in demand outside the United States. All these factors, as noted by the head of the Fed, may interrupt rising rates by the middle of next year.
Bullish oil prices underpin Loonie while modest rebound in USD demand following cautious investor sentiment in early Asian market hours keeps pair range bound.
Investing.com - The dollar dipped against a currency basket on Monday, adding to Friday’s losses amid uncertainty over the pace of future U.S. interest rate hikes, while the pound was holding above the 1.28 level as Brexit worries rumbled on.