20131129

Good morning,

Markets kept in ranges with a positive bias in yesterdays trading session where the US markets were closed due to Thanksgiving. European shares were well bid with EURO STOXX 50 up 0.3% - Italian FTSE MIB was the best performer of the major economies with an increase of 0.9%. In FX markets, EUR/USD closed above the 50-day SMA, which it has been below for the entire month of November. This open up for a test of the recent highs at 1.3832. Cable sustained above the Double Top at 1.6260 and is looking to take home its fourth week of gains. JPY generally on the offer as risk taking was present, but has this morning been offered against the US Dollar as we get closer to the 103.73-level, despite an overall bullish setup. Oil keeps within the downtrend in the aftermath of the build in the weekly inventories as well as the nuclear deal with Iran calming geo-political tensions. Better than expected sentiment figures from the Euro zone became the center of attention in the European session.

In Asia, Japan took center stage with a string of releases, but not showing much surprise. CPI figures came in line with expectations, but the Unemployment Rate and Industrial Production were worse than expected. This had a negative effect on risk which was later offset by better than expected Housing Starts at 7.1% vs. 4.3% exp and 19.4% prior. The Nikkei was sent lower with the ASX200, while the Hang Seng managed to take home 0.3%.

Today, markets will focus on the UK figures at 09:30 - especially the Mortgage Approvals and Net Lending and should the figures be supportive, we could see additional GBP-gains unless the market has priced in too high expectations and it will become a "buy the rumor, sell the fact" incidence. From the EU, CPI and Unemployment will be interesting at 10GMT and the market should get additional hints on the ECB monetary policy in light of the recent surprise cut in rates. The last trading day in November will end on the macro front with the release of the Canadian GDP, which is expected to come out for Q3 at 2.5% against 1.7% prior.

Have a nice weekend!