Posted at 10 October 2023 / Categories Market Roundups
Market Roundup
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Looking Ahead Economic Data(GMT)
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Currency Summaries
EUR/USD: The euro recovered some ground after initially falling on Monday as military clashes between Israel and the Palestinian Islamist group Hamas deepened political uncertainty across the Middle East.Risk sentiment was fragile after Israeli forces fought gunmen from the Palestinian group Hamas over the weekend, hours after the militants launched an attack on Israel in the deadliest day of violence in the country for 50 years. Market focus is also on minutes from the Federal Reserve’s latest monetary policy meeting and the U.S. inflation data due later this week. Traders are now pricing in an around 28% chance of another rate hike from the Fed this year, according to the CME Fedwatch tool. The euro was up 0.04% to $1.0570 against dollar. Immediate resistance can be seen at 1.0607 (50%fib), an upside break can trigger rise towards 1.0680(61.8%fib).On the downside, immediate support is seen at 1.0547(c), a break below could take the pair towards 1.0471(23.6%fib).
GBP/USD: Sterling rebounded from earlier losses to trade slightly higher on Monday as recent economic data provided some reason for optimism about the UK's economic outlook.The safe-haven dollar rose as increased violence in the Middle East spooked markets, after a blowout U.S. jobs report gave the currency a leg up. Some analysts argued that last week's economic figures from the UK have provided some grounds for optimism.The final reading of the S&P Global UK Services Purchasing Managers' Index (PMI) hit an 8-month low but was better than a preliminary "flash" reading of 47.2.Investors see little chance of another BoE rate hike at the next policy meeting in November, but they are pencilling in one more rate increase in 2024. Immediate resistance can be seen at 1.2245 ( 50%fib), an upside break can trigger rise towards 1.2325 (61.8%fib).On the downside, immediate support is seen at 1.2164 (38.2%fib), a break below could take the pair towards 1.2142(23.6%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as Canadaian dollar was boosted by surging oil prices as the conflict between Israel and Palestinian Islamist group Hamas raised supply fears. Risk sentiment was fragile as Israel said it had called up 300,000 reservists and was imposing a total blockade of the Gaza Strip in a sign of a potential ground assault in response to the weekend attack by Hamas. The conflict in the Middle East comes at a time when markets are jittery and bond yields around the world are at multi-year highs. The Canadian dollar was trading 0.05% higher at 1.3581 to the greenback, , its biggest decline since Oct 2nd .Immediate resistance can be seen at 1.3611 (5DMA), an upside break can trigger rise towards 1.3664 (23.6%fib).On the downside, immediate support is seen at 1.3570 (38.2%fib), a break below could take the pair towards 1.3499 (50%fib).
USD/JPY: The dollar declined against yen on Monday as dramatic clashes between Israeli and Hamas forces over the weekend raised the risk of a wider Middle East conflict and boosted demand for safe haven assets. Hamas fighters rampaged through Israeli towns as the country suffered its bloodiest day in decades on Saturday. Israel battered Palestinians with air strikes in Gaza on Sunday, with hundreds reportedly killed on both sides. The spiralling violence between Israel and Hamas threatens to start a major new war in the Middle East, sending oil prices higher and boosting the demand for safe-haven assets like U.S. Treasuries, the dollar and the Japanese yen along with gold. Strong resistance can be seen at 149.73 (23.6%fib).an upside break can trigger rise towards 150.23(Oct 3rd high).On the downside, immediate support is seen 148.43 (21DMA)a break below could take the pair towards 147.90(38.2%fib).
Equities Recap
European stocks came under pressure on Monday as Mideast military clashes sparked a rush to safe-haven assets such as bonds and gold, while boosting oil prices more than 3%.
UK's benchmark FTSE 100 closed down by 0,03 percent, Germany's Dax ended down by 0.67 percent, France’s CAC finished the day down by 0.55 percent.
Wall Street's major indexes closed higher on Monday while energy stocks rallied as investors digested the latest news about the conflict between Israel and the Palestinian Islamist group Hamas.
Dow Jones closed up by 0.59% percent, S&P 500 closed up by 0.63% percent, Nasdaq settled up by 0.39% percent.
Commodities Recap
Oil prices jumped more than 4% as military clashes between Israel and the Palestinian Islamist group Hamas fueled worries that the conflict could spread beyond Gaza.
Brent crude rose $3.57, or 4.2%, to settle at $88.15 a barrel, while U.S. West Texas Intermediate crude settled at $86.38 a barrel, up $3.59, or 4.3%.
Gold prices scaled a one-week high on Monday after military conflict between Israeli forces and Palestinian Islamist group Hamas raised political unrest in the Middle East, bolstering the safe-haven appeal of the metal.
Spot gold was up 1.1% at $1,853.20 per ounce by 0141 p.m. EDT (1741 GMT), its highest since Sept. 29.U.S. gold futures settled 1% higher at $1,864.30.