3 markets to watch
November was one of the best months for equities so far this year. Did Santa Claus rally arrive early this year, or is the seasonal end-of-the-year rally still ahead of us? We shall know soon! In the meantime, traders will focus on US jobs data, German industrial data as well as rate decisions from RBA and BoC in the coming days. Be sure to watch USDJPY, DE30 and AUDCAD in the week ahead.
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Traders will be offered a streak of US jobs market reports this week. The NFP report for November (Friday, 1:30 pm GMT) will be a key release of the week, but others also deserve a note. Those include JOLTS report (Tuesday, 3:00 pm GMT), ADP report (Wednesday, 1:15 pm GMT) and Challenger report (Thursday, 12:30 pm GMT). USDJPY could be the pair on the move as the Japanese Q3 GDP report will also be released this week (Thursday, 23:50 pm GMT). The pair pulled back from recent highs near 152.00 and a downtrend structure can be seen building up on the chart.
November was the best month for European equities since January 2023. Falling likelihood of further monetary policy tightening is supporting indices. However, the economic outlook is still uncertain, with recession in Europe as well as no recession being both real options. This week will see release of German factory orders data for October (Wednesday, 7:00 am GMT), German industrial production for October (Thursday, 7:00 am GMT) as well as Q3 GDP report from euro area (Thursday, 10:00 am GMT), and those reports may shed some more light on the situation.
AUDCAD may see some moves this week as traders will be offered rate decisions from the Reserve Bank of Australia as well as Bank of Canada. RBA is set to announce its decision on Tuesday, 3:30 pm GMT while BoC is scheduled to make an announcement on Wednesday, 3:00 pm GMT. Both are expected to stay on hold, with money markets pricing in around 10% chance of each delivering a 25 bp rate cut. However, attention will be on the narrative following last week's surprisingly hawkish RBNZ meeting.
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