Another Monday Rally in Equities at the Expense of USD & JPY
Just as the last 4 Fridays have proven positive for the USD and JPY at the expense of equities and oil, today (as in the last 4 Mondays) proves negative for USD and JPY to the benefit of global equities and oil prices. Japan was closed, Dow futures +90 pts as markets await US Nov existing home sales (exp +2.3% to 5.7 mln) will likely reflect the rise in pending home sales released earlier this month. USDCAD await the 13:30 GMT release of Canadas Sep retail sales (exp +0.6% from +0.8%, core exp -.4% from +0.5%). GBPUSD seen capped at $1.6675-80, while USDCAD risks extending losses to 1.0530, Stronger than exp CAD and US data could seen testing 1.0499s, which is just above the 61.8% retracement of the Nov 16-Nov 20 rally.