Upbeat jobs report propel US stocks to fresh record highs
Monday is a busy day on both sides of the Atlantic, with a slew of data set for release. The European calendar gets underway at 07:00 GMT, with the publication of the German industrial production numbers and the latest trade balance. The Bank of France Business survey will be released at 07:30 GMT. The latest Swiss retail sales data will cross the wire at 08:15 GMT. The only UK data set for release is expected at 08:30 GMT, with the publication of the December Halifax House Price Index. UK politics will also return to the fore Monday, as Parliament returns from the Christmas recess. House prices rose 0.2% m/m in November, rising 6.0% y/y. Analysts expect a annual rise of 6.1% in December. The Euro area Sentix Economic Index will be published at 09:30 GMT. The EMU November unemployment rate will be published at 10:00 GMT, with forecasts for a small improvement on October's 9.8% rate. The US calendar gets underway at 14:00 GMT, when Boston Federal Reserve Bank President Eric Rosengren gives keynote address at the Connecticut Business & Industry Association's
Economic Summit in Hartford. Back on the Continent, the ECB will call for bids on this week's 7-day MRO, before releasing the outcome of the latest PSPP bond-buying data at 14:50 GMT. US data due at 15:00 GMT sees the Fed's LMCI released. The Bank of Canada Business Outlook Survey will be released at 15:30 GMT. At 16:00 GMT, the NY Fed survey of consumer expectations is due for publication. Atlanta Federal Reserve Bank President Dennis Lockhart speaks on monetary policy to the Rotary Club of Atlanta, with an audience and media Q&A expected. Late US data sees the November consumer credit data released at 20:00 GMT. Consumer credit usage is expected to rise by $19.3 billion in November after a $16.0 billion gain in October. Retail sales rose only 0.1% in the month and were up only 0.2% excluding motor vehicle sales. When gasoline sales were also excluded, retail sales posted a 0.2% increase, suggesting revolving credit use could be soft in a month that should represent the start of the holiday shopping season.
Despite the aggressive recovery from fresh 14+ year lows last week, the pair remained capped ahead of the $1.0653-89 resistance region where the 55-DMA is located. The pullback has left the pair looking a little heavy with bears continuing to look for a close below the 21-DMA to end bullish hopes and shift immediate focus back to $1.0340. Overall while the $1.0689 level caps bears focus on a test of $1.0208. Above $1.0689 shifts focus to $1.0873-1.0951.
Spot Gold last up $2.75 at $1,175.35 per ounce, in a $1,176.10 to $1,172.00 range so far, this morning in Asia, with the market seeing a slight bid despite the US dollar posting slight gains against the yen, with futures seeing some 1.5k trade on the move from 1,173.40 to 1,176.30. However, trade has been quiet overall as Japanese markets are closed for the Coming-of-Age Day holiday. Friday saw Feb'17 gold close down $7.90 at 1173.40, as the US dollar strengthened in the wake of a solid payroll report.