Posted at 20 September 2023 / Categories Market Roundups
Market Roundup
• Canada Aug Core CPI (MoM) 0.1%,0.5% previous
• Canada Aug Core CPI (YoY) 3.3%,3.2% previous
• Canada Aug Housing Starts (MoM) -11.3%,3.9% previous
•Canada Aug Common CPI (YoY) 4.8% ,4.8% forecast, 4.8% previous
•Canada Aug CPI (YoY) 4.0%, 3.8% forecast,3.3% previous
• Canada Aug Median CPI (YoY) 4.1%,3.7% forecast,3.7% previous
•Canada Aug Trimmed CPI (YoY) 3.9%,3.5% forecast,3.6% previous
•Canada Aug Housing Starts 1.283M, 1.440M forecast,1.452M previous
•Canada Aug Building Permits 1.543M,1.440M forecast,1.443M previous
•Canada Aug CPI (MoM) 0.4% ,0.2% forecast,0.6% previous
• US Redbook (YoY) 3.6%, 4.6% previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Release(GMT)
•No significant Events
Currency Summaries
EUR/USD: Euro strengthened against dollar on Tuesday as investors cautiously awaited a slew of central bank decisions this week. Investors remained cautious ahead of interest rate decisions by major central banks this week, including the U.S. Federal Reserve on Wednesday and Bank of England, Swiss National Bank, Riksbank, and Norges Bank on Thursday. Euro zone inflation numbers for August will be also be closely watched later in the day, after the European Central Bank (ECB) hiked rates last week to a record level of 4%. Immediate resistance can be seen at 1.0717(38.2%fib), an upside break can trigger rise towards 1.0785(50%fib).On the downside, immediate support is seen at 1.0687(5DMA), a break below could take the pair towards 1.0640(23.6%fib).
GBP/USD: The pound held near three-month lows on Tuesday, ahead of a slew of central bank decisions, including that of the Bank of England later this week, which is expected to yield a final rate rise in the current cycle. The BoE meets on Thursday and money markets show traders widely expect to see one final quarter-point hike to 5.50%, but no realistic prospect of a rate cut until next summer.Inflation has fallen to 6.8% from a 41-year peak of 11.1% last October, but it is still the highest among major economies and progress in bringing it down has been far slower.Consumer inflation in the United States has fallen to 3.7% from last June's 9.1% rate, while in the euro zone, inflation is running at 5.3%, almost half last October's 10.7% reading. Immediate resistance can be seen at 1.2390(5DMA), an upside break can trigger rise towards 1.2443(38.2%fib).On the downside, immediate support is seen at 1.2346 (23.6%fib), a break below could take the pair towards 1.2322(Lower BB).
USD/CAD: The Canadian dollar strengthened to a six-week high against its U.S. counterpart on Tuesday, before giving back some of its gains, as hotter-than-expected inflation data bolstered bets for additional tightening by the Bank of Canada. Canada's annual inflation rate in August jumped to 4.0% from 3.3% in July on higher gasoline prices. Analysts polled had forecast inflation would hit 3.8%. The price of oil, one of Canada's major exports, settled 0.3% lower at $91.20 a barrel after earlier touching a 10-month high. The Canadian dollar was trading 0.3% higher at 1.3440 to the greenback, or 74.40 U.S. cents, after touching its strongest intraday level since Aug. 10 at 1.3383.Immediate resistance can be seen at 1.3480 (5DMA), an upside break can trigger rise towards 1.3496 (38.2% fib).On the downside, immediate support is seen at 1.3424(50% fib), a break below could take the pair towards 1.3390(Sep19th low).
USD/JPY: The dollar was flat on Tuesday as investors awaited a series of key central bank policy meetings this week. The yen is drawing a lot of focus at the moment, as the BOJ prepares to meet to discuss monetary policy on Friday. The last time the yen was this weak was last autumn, when Japanese authorities intervened to prop it up.Expectations are for the BOJ to maintain its policy of ultra-low interest rates and reassure markets that monetary stimulus will stay in place, at least for now, even as Governor Kazuo Ueda stoked speculation of an imminent move away from the central bank's current policy stance. Yen hit a 10-month low of 147.95 per dollar last week and by Tuesday, was not far off that mark, flat on the day at 147.86. Strong resistance can be seen at 148.12(23.6%fib) an upside break can trigger rise towards 148.50 ( Higher BB).On the downside, immediate support is seen 146.41 (5DMA), a break below could take the pair towards 146.56(38.2%fib).
Equities Recap
European shares ended subdued on Tuesday as gains in energy stocks countered losses in industrials, though investors exercised caution ahead of a slew of central bank decisions around the world this week.
UK's benchmark FTSE 100 closed up by 0.09 percent, Germany's Dax ended down by 0.40 percent, France’s CAC finished the day up by 0. 08 percent.
Wall Street lost ground on Tuesday, with risk-off sentiment weighing as the U.S. Federal Reserve convened for its much-anticipated two-day monetary policy meeting.
Dow Jones closed down by 0.31 percent, S&P 500 ended down by 0.22 percent, Nasdaq finished the day down by 0.23 percent.
Commodities Recap
Gold held near a two-week peak on Tuesday, although prices were stuck in a narrow range as focus turned to the Federal Reserve’s policy meeting for updates on the interest rate outlook and economic projections.
Spot gold was flat at $1,930.79 per ounce at 1:59 p.m. EDT (1759 GMT) after hitting its highest since Sept. 5 earlier in the session. U.S. gold futures settled little changed at $1,953.70.
Oil prices rose to 10-month highs on Tuesday before easing, as investors took profits following three sessions of gains that followed extended production cuts from Saudi Arabia and Russia.
Global benchmark Brent crude futures settled 9 cents lower at $94.34 a barrel. Earlier, it hit a session peak of $95.96 a barrel, their highest since November.
U.S. West Texas Intermediate crude futures dropped 28 cents to $91.20 after earlier reaching $93.74 a barrel, also the highest since November.