Daily Market Analysis by Vinson Financials

Financial News November 20, 2015


Euro area November consumer confidence may improve

The European Commission's consumer confidence indicator is scheduled to publish today. The indicator is calculated based on the questions regarding the general economic situation, savings and households' financial situation, expectations of unemployment over the next 12 months.

Other business surveys observe an improvement in the job market of the economy both in terms of wages as well as employment. Lower oil prices continue to prevail in the market , therefore, purchasing power for consumers is seemed to be increased.

"We expect the number for consumer confidence to improve from -7.7 to -6.9 for November. The rest of the EC confidence indicators, along with the flash PMI estimates, will be released next week" says Societe Generale in a research note.

Market Review November 20, 2015

Asian Session was rather quiet while the lack of important announcements pushed the market to move sideways. All these despite the ‘’confirmation’’ of a rate hike in December by FED, this signals that traders are looking beyond December into next year and the outlook for Fed's rate path is still rather unclear something that can confirm form bonds futures pricing.

On the data front New Zealand’s Credit Card Spending y/y announce at 7.8% that boosted a little the country’s currency. China also release CB Leading Index m/m at 0.6%. Germany released PPI in early European session at -0.4% missing the forecast of -0.2% causing EUR/USD to drop below the 1.0690. UK will release public sector net borrowing. Additionally today the Canadian data will attract investors interest since includes retail sales and CPI. Furthermore Eurozone will also release consumer confidence.

Data releases to monitor:

GBP: Public Sector Net Borrowing

EUR: Consumer Confidence, German Buba President Weidmann Speaks

USD: FOMC Member Dudley Speaks

CAD: Core CPI m/m, Core Retail Sales m/m, CPI m/m, Retail Sales m/m

Trade Idea of the Day

USD/CAD

Currently the pair is trading at 1.3329. Traders must monitor the 1.3370 resistance level and the support level 1.3245 for possible breakouts. A possible scenario would be a movement towards the 1.3340 resistance level, where a break may lead above the 1.3370 level. An alternative scenario could be a movement towards the 1.3292 support level, where a break may lead to the 1.3245.

Daily Market Analysis by Vinson Financials