Posted at 12 September 2023 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction 3.646%,3.609% previous
•French 3-Month BTF Auction 3.684% ,3.657% previous
•French 6-Month BTF Auction 3.696% ,3.657% previous
•US Consumer Inflation Expectations 3.63%, 3.5% previous
•US 3-Month Bill Auction 5.315%, 5.315% previous
•US 6-Month Bill Auction5.300%, 5.300% previous
• US 3-Year Note Auction 4.660% ,4.398% previous
Looking Ahead Economic Data(GMT)
•01:00 New Zealand Economic Forecast-16.697B forecast, -6.960B previous
•01:00 New Zealand Net Debt Forecast 40.30% forecast,38.50% previous
•01:30 Australia Aug NAB Business Survey 10 previous
•01:30 Australia Aug NAB Business Confidence 2 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday as investors looked forward to a crucial U.S. inflation reading as well as a monetary policy decision from the European Central Bank (ECB) later in the week for more cues on the direction of global interest rates. The European Central Bank will hold interest rates steady on Sept. 14, according to a majority of economists polled , but just under half expect one more hike this year to tame inflation. Investors will also closely monitor commentary from ECB officials through the week to cement bets on the central bank's interest rate trajectory. Immediate resistance can be seen at 1.0744(5DMA), an upside break can trigger rise towards 1.0788(38.2%fib).On the downside, immediate support is seen at 1.0693(23.6%fib), a break below could take the pair towards 1.0672(Lower BB).
GBP/USD: The pound strengthened on Monday, taking advantage of a hefty decline in the dollar against the Japanese yen that spilled into other currencies. The dollar bore the brunt of the rush into the yen, falling by the most in two months against the Japanese currency. Sterling was last up 0.4% against the dollar at $1.2521.The pound fell by almost 1% against the dollar last week, as a combination of stronger economic data and weaker investor confidence fuelled a push into the U.S. currency. The Bank of England meets next week to discuss monetary policy. Traders are attaching a 70% chance of a quarter-point rise in the Bank Rate to 5.50%.Immediate resistance can be seen at 1.2546(5DMA), an upside break can trigger rise towards 1.2588(38.2%fib).On the downside, immediate support is seen at 1.2455 (23.6%fib), a break below could take the pair towards 1.2426(Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, adding to its recovery from a five-month low, as an increase in risk appetite weighed on the safe-haven U.S. dollar. The U.S. dollar gave back some recent gains against a basket of major currencies and Wall Street rallied as investors awaited U.S. inflation data on Wednesday. The price of oil, one of Canada’s major exports, settled down 0.3% at $87.29 a barrel but holding near 10-month highs following fresh Saudi and Russian crude output cuts. The loonie was trading 0.4% higher at 1.3580 to the greenback, or 73.64 U.S. cents, after moving in a range of 1.3562 to 1.3639. On Thursday, the currency hit its weakest intraday level since March 28 at 1.3694 .Immediate resistance can be seen at 1.3625 (5DMA), an upside break can trigger rise towards 1.3666 (23.6%fib).On the downside, immediate support is seen at 1.3561 (38.2%fib), a break below could take the pair towards 1.3472(50%fib).
USD/JPY: The dollar declined sharply against Japanese yen on Monday as comments from Bank of Japan (BOJ) Governor Kazuo Ueda stoked hopes that Japan could soon herald a new era away from negative rates. Ueda told the Yomiuri newspaper in an interview that the BOJ could have enough data by the end of the year to determine whether it can end negative rates.The yen has come under pressure against the dollar as a result of growing interest rate differentials with the United States since the Federal Reserve began its aggressive rate-hike cycle last year while the BOJ remains a dovish outlier. The Japanese currency was last 0.66% stronger at 146.70 per dollar. Strong resistance can be seen at 146.82(9DMA) an upside break can trigger rise towards 147.43 ( 23.6%fib).On the downside, immediate support is seen 145.83 (38.2%fib), a break below could take the pair towards 145.00(Psychological level).
Equities Recap
European shares closed higher on Monday, with miners leading gains as prices of most base metals rose, while investors braced for a crucial U.S. inflation print and the European Central Bank's (ECB) monetary policy decision later this week.
UK's benchmark FTSE 100 closed down by 0. 0.25 percent, Germany's Dax ended up by 0.36 percent, France’s CAC finished the day up by 0. 52 percent.
U.S. stocks ended the session higher and the dollar retreated on Monday, as investors looked ahead to Wednesday's inflation data, while the Bank of Japan suggested it could be moving toward closing the door on an era of negative interest rates.
Dow Jones closed up by 0.25 percent, S&P 500 ended up by 0.67 percent, Nasdaq finished the day up by 1.14 percent.
Commodities Recap
Gold edged up on Monday on a retreat in the dollar, with focus still squarely on U.S. inflation readings and their likely influence on the Federal Reserve’s interest rate trajectory.
Spot gold climbed 0.2% to $1,921.10 per ounce by 2:36 p.m. EDT (1836 GMT), while U.S. gold futures settled 0.2% higher at $1,947.20.
The benchmark oil price settled largely unchanged on Monday, holding above the $90 a barrel reached last week for the first time in 10 months following fresh Saudi and Russian crude output cuts.
Brent crude settled down 1 cent to $90.64 a barrel while U.S. West Texas Intermediate crude settled down 22 cents to $87.29.