Posted at 02 October 2023 / Categories Market Roundups
Market Roundup
•Japan's yen edges toward 150 to the dollar
•French 12-Month BTF Auction 3.787%,3.789% previous
•French 3-Month BTF Auction 3.773%,3.822% previous
•French 6-Month BTF Auction 3.828% ,3.824% previous
•Canada Sep Manufacturing PMI 47.5, 48.0 previous
•US Sep Manufacturing PMI 49.8, 48.9 forecast ,47.9 previous
•US Sep SM Manufacturing New Orders Index 49.2,46.8 previous
•US Sep ISM Manufacturing Employment 51.2, 48.3 forecast ,48.5 previous
•US Sep ISM Manufacturing PMI 49.0, 47.7 forecast ,47.6 previous
•US Aug Construction Spending (MoM) 0.5%, 0.5% forecast ,0.7% previous
•US Sep ISM Manufacturing Prices 43.8, 48.6 forecast ,48.4 previous
•US 3-Month Bill Auction 5.345%, 5.330% previous
•US 6-Month Bill Auction 5.340%, 5.315% previous
Loooking Ahead Economic Data(GMT)
•00:30 Australia Aug Private House Approvals 0.1% previous
•00:30 Australia Aug Building Approvals (YoY )-6.40% forecast , -18.00% previous
•00:30 Australia Invest Housing Finance (MoM) -0.1% previous
•00:30 Australia ANZ Job Advertisements (MoM) 1.9% previous
•00:30 Australia Aug Building Approvals (MoM) 2.7% forecast ,-8.1% previous
•00:30 Australia Home Loans (MoM) 0.0% forecast ,-1.9% previous
Looking Ahead Events And Other Releases(GMT)
•03:30 Australia Oct RBA Interest Rate Decision 4.10% forecast , 4.10% previous
•03:30 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro declined against dollar on Monday after data showed Euro zone manufacturing activity remained mired in a deep and broad-based downturn last month, according to a survey which showed on Monday that demand kept shrinking at a pace rarely surpassed since the data was first collected in 1997.HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dipped to 43.4 in September from August's 43.5, matching a preliminary estimate. A reading below 50 marks a contraction in activity. The euro was down 0.4% at $1.0477, after ending the previous quarter with a 3% fall, its worst performance in a year. Immediate resistance can be seen at 1.0519 (5DMA), an upside break can trigger rise towards 1.0549(38.2%fib).On the downside, immediate support is seen at 1.0466(23.6%fib), a break below could take the pair towards 1.0437(Lower BB).
GBP/USD: The pound fell slightly on Monday, continuing a weak run that saw it drop 3.7% in September - its worst monthly performance in a year. There was little in the way of economic data to move markets on Monday although figures showed that British house prices in September were 5.3% lower than a year earlier. Prices were unchanged month-on-month.The final reading of a closely watched UK manufacturing survey showed that activity continued to slow sharply in September, although less steeply than the month before. Sterling was last down 0.14% at $1.2188. Last week it fell to its lowest level since March at $1.2111 before picking up slightly, but it is still up 0.8% for the year. Immediate resistance can be seen at 1.2141(5DMA), an upside break can trigger rise towards 1.2219(38.2%fib).On the downside, immediate support is seen at 1.2070 (23.6%fib), a break below could take the pair towards 1.2041(Lower BB).
USD/CAD The Canadian dollar weakened against its U.S. counterpart on Monday after the U.S. government avoided a shutdown and economic data again supported the view that the Federal Reserve will keep interest rates higher for a longer period of time. U.S. manufacturing took a step further toward recovery in September as production picked up and employment rebounded, according to an Institute for Supply Management survey that also showed prices paid for inputs by factories falling considerably.. The market focus now shifts to job openings data, private hiring numbers and U.S. nonfarm payrolls over the course of the week . The loonie was trading 0.6% lower at C$1.3680 to the greenback after trading in a range of 1.3557 to 1.3627. Immediate resistance can be seen at 1.3693 (Sep 8th high), an upside break can trigger rise towards 1.3736 (23.6%fib).On the downside, immediate support is seen at 1.3688(38.2%fib), a break below could take the pair towards 1.3595 (50%fib).
USD/JPY: The dollar steadied against the yen near 150 level on Monday , putting traders on watch for intervention from Japanese authorities. Investors have been closely watching for signs of intervention in the Japanese currency by the Bank of Japan (BOJ).The yen has come under pressure against the dollar as the BOJ remains a dovish outlier among global central banks, especially since the Fed began its aggressive rate-hike cycle in March 2022. A summary of opinions at the Bank of Japan's September meeting, out on Monday, showed policymakers discussed various factors that must be taken into account when exiting ultra-loose policy, while Finance Minister Shunichi Suzuki said they were closely watching FX moves with a strong sense of urgency . The Japanese yen weakened 0.33% versus the greenback at 149.83 per dollar. Strong resistance can be seen at 149.79(23.6%fib) an upside break can trigger rise towards 150.09 (Higher BB).On the downside, immediate support is seen 149.04(5DMA), a break below could take the pair towards 148.18 (38.2%fib).
Equities Recap
European stocks kicked off the final quarter on a negative note as higher bond yields pressured equities and as data showed factory activity in the euro zone remained in a broad-based downturn.
UK's benchmark FTSE 100 closed down by 1.28 percent, Germany's Dax ended down by 0.91 percent, France’s CAC finished the day down by 1.28 percent.
The S&P 500 ended nearly flat on Monday with utilities falling sharply and investors weighing the likelihood the Federal Reserve will need to hold interest rates higher for longer.
Dow Jones closed down by 0.22% percent, S&P 500 closed up by 0.01% percent, Nasdaq settled up by 0.67% percent.
Treasuries Recap
The benchmark 10-year notes hit their highest yield since 2007 and were last up 12 basis points to 4.691%, from 4.571% late on Friday. The 30-year bond was last up 9.3 basis points to yield 4.8021%, from 4.709%. The 2-year note was last was up 7.1 basis points to yield 5.1166%, from 5.046%.
Commodities Recap
U.S. crude oil prices fell 2% on Monday to a three-week low as a higher-priced Brent contract expired, the U.S. dollar strengthened and traders took profits, concerned about forecasts of rising crude supplies and pressure on demand from high interest rates.
U.S. crude settled down 2.17% at $88.82 per barrel and Brent ended at $90.71, down 1.62% on the day.
Gold was on track for its sixth consecutive loss, hitting a near seven-month low as a robust dollar and prospects of higher U.S. interest rates took the shine off bullion.
Spot gold dropped 1.1% to $1,828.99 an ounce. U.S. gold futures fell 1.03% to $1,829.00 an ounce