Posted at 27 September 2023 / Categories Market Roundups
Market Roundup
•Canada Manufacturing Sales (MoM) 1.0%,1.6% previous
•Redbook (YoY) 3.8%,3.6% previous
•US Jul House Price Index (YoY) 4.6%,3.1% previous
•US Jul House Price Index 409.5,405.8 previous
•US Jul House Price Index (MoM) 0.8%,0.5% forecast, 0.3% previous
•US Jul S&P/CS HPI Composite - 20 n.s.a. (YoY) 0.1%,-0.3% forecast, -1.2% previous
•US Jul S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.6%, 0.9% previous
•US Sep Richmond Manufacturing Shipments 7,-5 previous
•US Aug New Home Sales (MoM) -8.7%, 4.4% previous
•US Sep CB Consumer Confidence 103.0, 105.5 forecast ,106.1 previous
•US Sep Richmond Manufacturing Index 5, -6 forecast , -7 previous
•US Aug New Home Sales 675K, 700K forecast , 714K previous
•US Sep Texas Services Sector Outlook -8.6,-2.7 previous
•US Sep Dallas Fed Services Revenues 8.7, 16.2 previous
Looking Ahead Economic Data (GMT)
• 01:30 China Aug Chinese Industrial profit YTD -15.5% previous
•01:30 Australia Aug Weighted mean CPI (YoY) 5.20% forecast , 4.90% previous
Looking Ahead Events And Other Release(GMT)
•No significant events ahead
Currency Summaries
EUR/USD: The euro declined on Tuesday as U.S. dollar added to recent gains as investors continued to grapple with the prospect of a prolonged period of restrictive monetary policy by the Federal Reserve. The Federal Reserve last Wednesday said that it may hike rates further and was likely to keep them elevated for a longer time as it battles to bring inflation closer to its 2% annual target. Data on Tuesday showed that sales of new U.S. single-family homes fell more than expected in August as the rate on the popular 30-year fixed mortgage jumped above 7%, but U.S. annual home price growth accelerated for a second straight month in July. Investors await the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, due on Friday to gauge the Fed’s interest-rate path. Immediate resistance can be seen at 1.0653(5DMA), an upside break can trigger rise towards 1.0693(38.2%fib).On the downside, immediate support is seen at 1.0570(23.6%fib), a break below could take the pair towards 1.0551(Lower BB).
GBP/USD: The pound fell for a fifth day on Tuesday as dollar rose on prospects of the Federal Reserve keeping interest rates higher for longer. The dollar is headed for a 2.4% rise in September, egged on by 10-year U.S. Treasury yields hitting their highest since before the financial crisis in 2007, after the Federal Reserve signalled last week rates will stay higher for longer. Sterling has been steadily sliding from a 15-month high in July, as it has become increasingly clear from macroeconomic data and from central banks' rhetoric that interest rates are more likely to rise in the United States than in the UK. The pound was last down 0.3% at $1.2174, around its lowest since March. Immediate resistance can be seen at 1.2216(5DMA), an upside break can trigger rise towards 1.2239(38.2%fib).On the downside, immediate support is seen at 1.2144 (23.6%fib), a break below could take the pair towards 1.2167(Lower BB).
USD/CAD: The Canadian dollar weakened to an eight-day low against its U.S. counterpart on Tuesday as a downturn in investor sentiment offset preliminary domestic data for August showing gains for wholesale trade and factory sales..Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment.The price of oil settled 0.8% higher at $90.39 a barrel, helped by expectations of tighter supply.Canadian wholesale trade rose 2.6% in August from July and factory sales were up 1%, advance estimates from Statistics Canada showed. The loonie was trading 0.5% lower at 1.3518 to the greenback , after touching its weakest level since Sept. 18 at 1.3528. Immediate resistance can be seen at 1.3539 (23.6% fib), an upside break can trigger rise towards 1.3581(Sep 13th high), immediate support is seen at 1.3489 (5DMA), a break below could take the pair towards 1.3465 (38.2 fib%).
USD/JPY: The dollar held near 11-month high against the yen on Tuesday as traders were on alert for signs of government intervention. The greenback's strength against the yen in particular has kept traders on alert for an intervention to prop up the Japanese currency, especially after Finance Minister Shunichi Suzuki on Tuesday said no options were off the table.The dollar held near an 11-month peak of 149.03 yen from overnight, with 150 per dollar seen by financial markets as a red line that would spur Japanese authorities to act, as they did last year. Strong resistance can be seen at 149.12(23.6%fib) an upside break can trigger rise towards 149.55 (Higher BB).On the downside, immediate support is seen 148.34(5DMA), a break below could take the pair towards 147.03 (38.2%fib).
Equities Recap
European shares fell for a fourth day on Tuesday, with rate-sensitive technology and real estate stocks pressured by surging bond yields, while fears over a sputtering Chinese economy sent a gauge of luxury stocks into bear market territory.
UK's benchmark FTSE 100 closed up by 0.2 percent, Germany's Dax ended down by 0.97 percent, France’s CAC finished the day down by 0. 70 percent.
Wall Street's main indexes ended down over 1% on Tuesday as 10-year Treasury yields held their multi-year highs, with investors still wrestling with prospects for a long period of high interest rates and the economic fallout.
Dow Jones closed down by 1.44 percent, S&P 500 ended down by 1.47 percent, Nasdaq finished the day down by 1.57 percent.
Commodities Recap
Gold prices on Tuesday were set to fall for a second straight session as Treasury yields and the dollar rose on prospects of the Federal Reserve keeping interest rates higher for longer.
Spot gold slipped 0.7% to $1,901.49 per ounce by 1:43 p.m. EDT (1743 GMT), after hitting its lowest since Aug. 23, while U.S. gold futures settled 0.9% lower at $1,919.80.
Oil prices settled nearly 1% higher on Tuesday, rebounding from a slump to a two-week low in early trading as expectations of tighter supply outweighed worries that an uncertain economic outlook would crimp demand.
Brent crude futures settled 67 cents higher, or 0.7%, at $93.96 a barrel. U.S. West Texas Intermediate crude futures settled 71 cents higher, or 0.8%, at $90.39.