ZEW Economic Sentiment, Canada Building Permits, FOMC Members Speak

The euro fell as low as $1.0629 during Monday’s trading session, its lowest level since April 22nd with the EUR/USD pair eventually ending the session at $1.0663. The shared currency is experiencing additional downward pressure due to political uncertainty within Germany, the bloc's largest economy as the Greens, on Monday joined opposition calls for an earlier parliamentary vote to open the way to a snap election.

On Tuesday, market participants will closely monitor the release of the German ZEW economic sentiment index and consumer inflation figures from several European economies, including Germany. Later this week the focus will shift to core inflation data from the US and core retail sales.

Spot gold prices experienced a decline from their recent peak of nearly $2,800 per ounce, driven by a surge in the US dollar and a rise in Treasury yields. Market participants are closely monitoring the upcoming release of the October Consumer Price Index data, which is anticipated to provide insights into the direction of interest rates in the future.

Looking ahead to this week, U.S. economic data, including comments from Fed officials and key reports on consumer and producer inflation, as well as retail sales, will be closely watched for further clues on the Fed’s path forward.

Oil prices experienced a sharp decline on Monday, with both WTI and Brent crude futures contracts shedding more than 2% of their value. Market sentiment was dampened by easing concerns over supply disruptions from the US Gulf Coast hurricane, and a lack of concrete fiscal stimulus measures to spur demand from China, the world’s largest oil consumer

Analysts anticipate that market attention will now shift to the forthcoming monthly oil market reports from OPEC, the IEA, and the EIA.

The US 500 briefly hit a new record high at $6053.74, still buoyed by Donald Trump's election victory and expectations for a policy agenda that includes corporate tax reductions and increased government expenditure, both of which are anticipated to have a positive effect on corporate profitability.

In corporate news, AbbVie's stock price declined by more than 12% following the announcement of the failure of its two Phase 2 trials for a schizophrenia treatment. Banking stocks are rallying on expectations of a more lenient regulatory environment under a potential second Trump administration, with JPMorgan, Goldman Sachs and Citigroup up by 1%, 2.26% and 1.75% respectively. Tesla Inc. added another 9% to its gains from the previous week, as investors speculate that closer ties between Elon Musk and a second Trump term could benefit the electric vehicle manufacturer.

The primary focus of this week is on the forthcoming release of the October Consumer Price Index data, with investors anticipating evidence of decelerating inflation.