Support
Markets continue rebounding after Friday's surge.
Attention shifts to European and Canadian economic releases, alongside U.S. consumer confidence data, amid ongoing market volatility
The euro extended gains for the third day
Gold struggles to gain momentum
WTI crude prices edge higher for the second consecutive day
UK GDP Data
UK GDP for November has come in slightly below expectations:
- GDP: 0.9% YoY (forecast: 1%, previous: 1%)
- GDP: 0.0% MoM (forecast: 0.1%, previous: 0.1%)
Market attention is shifting to a series of European and Canadian economic releases today, while U.S. consumer confidence data is also on the radar following recent market volatility. The UK GDP figures, combined with German import price data, provide insights into the economic health of Europe, while Canadian GDP may influence the Bank of Canada’s policy outlook. Furthermore, the Fed’s recent remarks on inflation have lessened concerns about U.S. CPI, keeping market participants cautious.
EUR/USD
Extended its gains for a third consecutive day, trading near 1.0440 during the Asian session on Monday. Despite the recent upward movement, the pair remains confined within a descending channel on the daily chart, signaling a continued bearish bias. The euro’s strength is somewhat tempered by the prevailing downtrend, leaving the currency pair in a cautious trading range.
Commodity market
gold (XAU/USD) faces challenges in gaining traction, holding around the $2,625 level after a modest recovery from a one-month low. The US Dollar (USD) is slightly weaker after touching a two-year peak last Friday, offering a bit of support to gold. Geopolitical risks, particularly the ongoing conflict in Ukraine and tensions in the Middle East, continue to bolster gold’s safe-haven appeal. However, the Fed’s approach of slower interest rate cuts through 2025 is keeping U.S. Treasury yields elevated, limiting gold’s upside. Equity market optimism also caps the precious metal’s potential for further gains. Traders are cautious, awaiting a clear breakout before positioning for a sustained rally.
In oil markets, WTI crude prices have edged higher for the second consecutive day, moving away from the previous week’s low of $68.35-$68.40. However, the move lacks strong bullish momentum. Easing concerns over demand from China provide some support to oil prices, though potential supply increases from non-OPEC+ countries could prevent a substantial rally.
