Posted at 11 October 2023 / Categories Market Roundups
Market Roundup
•US Aug Wholesale Inventories (MoM) -0.1%,-0.1% forecast, -0.2% previous
•US Aug Wholesale Trade Sales (MoM) 1.8%, 0.8% previous
•US Consumer Inflation Expectations 3.70%, 3.63% previous
•US 3-Month Bill Auction 5.320%, 5.345% previous
•US 6-Month Bill Auction 5.340%, 5.340% previous
•US 3-Year Note Auction 4.740%, 4.660% previous
Looking Ahead Economic Data(GMT)
• No data ahead
Looking Ahead Eevnts And Other Release(GMT)
• 01:30 Japan BoJ Board Member Noguchi Speaks
Currency Summaries
EUR/USD: The euro strengthened as the dollar slid on Tuesday in response to a sharp drop in Treasury yields on the back of further dovish comments by Federal Reserve officials, as well as the prospect of stimulus from China. A slew of Fed officials have signalled in recent days that the U.S. central bank may not need to tighten monetary policy much further than initially thought. The focus now turns to minutes of the Fed’s September policy meeting out later on Wednesday, which could offer further clues on its interest rate outlook. The comments pushed the greenback to a two-week trough against a basket of currencies. The euro rose 0.3% against the dollar to $1.0610.Immediate resistance can be seen at 1.0616 (50%fib), an upside break can trigger rise towards 1.0680(61.8%fib).On the downside, immediate support is seen at 1.0547(38.2%fib), a break below could take the pair towards 1.0458(23.6%fib).
GBP/USD: Sterling rose on Tuesday, moving further off recent lows and rallying in line with a rebound across markets, as investment flows to safe-haven currencies and assets a day earlier caused by the war in the Middle East reversed somewhat. The pound was 0.5% higher against the Japanese yen at 182.5 yen having fallen a similar amount the day earlier - the yen is typically a beneficiary of a rush to safety in markets and up 0.2% against the dollar at $1.2265. The British currency has managed something of a comeback in recent days against the dollar, rising for the past five sessions after having its worst month in a year in September. Immediate resistance can be seen at 1.2271 ( 38.2%fib), an upside break can trigger rise towards 1.2347 (50%fib).On the downside, immediate support is seen at 1.2164 (23.6%fib), a break below could take the pair towards 1.2110(Oct 6th low).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, with the currency holding near its highest level in more than one week as dovish comments from Federal Reserve policymakers bolstered investor sentiment. Wall Street rallied and the U.S. dollar lost ground against a basket of major currencies as Atlanta Fed President Raphael Bostic said the U.S. central bank does not need to raise interest rates any further. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment. The Canadian currency was trading nearly unchanged at 1.3595 to the greenback, or 73.56 U.S. cents, after touching its strongest intraday level since Oct. 2 at 1.3570.Immediate resistance can be seen at 1.3654 (23.6% fib), an upside break can trigger rise towards 1.3671(Oct 9th high).On the downside, immediate support is seen at 1.3540 (38.2% fib), a break below could take the pair towards 1.3453(50% fib).
USD/JPY: The dollar edged down against yen on Tuesday as investors l looked forward to further cues on the U.S. central bank's policy stance. Traders awaited the release on Wednesday of minutes from the Fed's last policy move as well as key U.S. inflation data on Thursday. Investors also are keeping a close eye on the conflict between Israel and the Palestinian Islamist group Hamas, though the initial safe-haven purchase of the dollar has stopped. The yen was last lower, with the dollar up 0.38% at 149.06 yen. Japan's currency bounced after the Kyodo news agency reported that the Bank of Japan is considering raising its forecast for core consumer inflation this year, but then gave up its gains. Investors were also keeping a close eye on the conflict between Israel and the Palestinian Islamist group Hamas. Strong resistance can be seen at 149.13 (5DMA).an upside break can trigger rise towards 149.66(23.6%fib).On the downside, immediate support is seen 147.90 (38.2%fib)a break below could take the pair towards 147.27 (Oct 3rd low).
Equities Recap
European stocks rebounded sharply on Tuesday as dovish comments from U.S. Federal Reserve and European Central Bank (ECB) policymakers bolstered sentiment a day after the conflict in the Middle East sparked a rush to safe assets.
UK's benchmark FTSE 100 closed up by 1.82 percent, Germany's Dax ended down by 1.95 percent, France’s CAC finished the day up by 2.01 percent.
Wall Street indexes closed higher on Tuesday, to notch their third straight day of gains, after dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower as investors cautiously monitored developments in the Middle East.
Dow Jones closed up by 0.40 % percent, S&P 500 closed up by 0.53% percent, Nasdaq settled up by 0.58% percent.
Treasuries Recap
U.S. Treasuries rallied, pushing two-year yields to their lowest in a month, as safe-haven demand was driven by the ongoing Mideast bloodshed and dovish Fed comments. The benchmark 10-year yield stood at 4.6468%.
Commodities Recap
Gold prices eased on Tuesday after rising nearly 2% in the previous session as investors cautiously turned back to riskier assets and looked forward to further cues on the U.S. central bank's policy stance.
Spot gold was down 0.1% at 1,858.64 per ounce as of 1:44 p.m. ET (1744 GMT), after rising to a more than one week high earlier in the session.U.S. gold futures settled 0.6% higher at $1,875.30 an ounce.
Oil prices settled lower on Tuesday, but bounced off session lows as concerns eased about potential supply disruptions from the battle between Israel and the Palestinian Islamist group Hamas, though traders remained watchful.
Brent crude settled down 50 cents, or 0.57%, at $87.65 a barrel. U.S. West Texas Intermediate (WTI) crude slid 41 cents to finish at $85.97 a barrel. At the session low, both benchmarks were down by more than $1.