Posted at 21 September 2021 / Categories Market Roundups
Market Roundup
•French 6-Month BTF Auction -0.681%,-0.675% previous
• French 3-Month BTF Auction -0.652%,-0.651% previous
• French 12-Month BTF Auction -0.657%,-0.649% previous
• US Sep NAHB Housing Market Index 76,74 forecast, 75 previous
• US 3-Month Bill Auction 0.035%,0.040% previous
• US 6- Month Bill Auction 0.045%,0.050% previous
Looking Ahead Economic Data (GMT)
•03:00 New Zealand Credit Card Spending (YoY) 6.9% previous
Looking Ahead - Events, Other Releases (GMT)
• 01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro declined against dollar on Monday as dollar firmed ahead of a week packed with global central bank meetings. Ahead this week, no fewer than a dozen central banks hold meetings, but traders' top focus is on the Fed where expectations for a tapering signal are keeping the dollar bid.The Fed concludes a two-day meeting on Wednesday and consensus is that it will stick with broad plans for tapering this year but will hold off providing details or a timeline for a at least a month. Immediate resistance can be seen at 1.1738 (50%fib), an upside break can trigger rise towards 1.1771(61.8%fib).On the downside, immediate support is seen at 1.1697(38.2%fib), a break below could take the pair towards 1.1650 (23.6%fib).
GBP/USD: Sterling hit a one-month low against the dollar on Monday as a global sell-off prompted by China's struggling Evergrande hit risk-oriented currencies while uncertainties about the Bank of England's monetary policy and surging gas prices also weighed. At 0827 GMT, the pound was about 0.5% lower against the dollar at $1.3662, its lowest level since Aug. 23. Versus the euro , sterling was down 0.32% at 0.8561 pence, a low not reached since Sept. 9. Immediate resistance can be seen at 1.3697(50%fib),an upside break can trigger rise towards 1.3741 (38.2%fib).On the downside, immediate support is seen at 1.3664(Lower BB), a break below could take the pair towards 1.3648(61.8%fib).
USD/CAD: The Canadian dollar edged higher against the U.S. currency on Monday, with investors focused on a federal election two years ahead of schedule that will determine whether Prime Minister Justin Trudeau stays in power . Trudeau may well prevail in Monday’s election but he could lose his bid for a parliamentary majority after a tough campaign that dashed hopes for a convincing win. The incumbent Canadian leader has a minority administration that forced him to rely on other parties and make policy compromises to govern. The loonie was trading 0.01% higher at 1.2800 to the greenback , after touching its weakest intraday level since Aug. 20 at 1.2895.Immediate resistance can be seen at 1.2832 (23rd Aug high), an upside break can trigger rise towards 1.2885(23.6%fib).On the downside, immediate support is seen at 1.2798 (38.2%fib), a break below could take the pair towards 1.2724 (50%fib).
USD/JPY: The dollar dipped against yen on Monday as investors stayed cautious ahead of a week packed with local and global economic indicators. Investors turned risk averse amid concerns around debt-laden Chinese developer Evergrande's inability to pay part of its huge debt due on Thursday. The market will also track the U.S. Federal Reserve's policy meeting, due to end on Wednesday, for indications on when it will start tapering its bond purchase programme.Strong resistance can be seen at 110.02(23.6%fib), an upside break can trigger rise towards 110.28(Higher BB).On the downside, immediate support is seen at 109.62(38.2%fib), a break below could take the pair towards 109.33(50%fib).
Equities Recap
European shares tumbled on Monday as growing solvency worries about property group China Evergrande spooked investors, in a dour start to a week packed with meetings of major central banks.
UK's benchmark FTSE 100 closed down by 0.86 percent, Germany's Dax ended down by 2.31 percent, France’s CAC finished the day down by 1.74 percent.
Wall Street's main indexes tumbled on Monday, as concerns about the pace of a global recovery spurred a selloff across sectors at the start of a week in which the Federal Reserve will decide on potentially tapering its pandemic-era stimulus.
Dow Jones closed down by 1.78% percent, S&P 500 closed down by 1.70 % percent, Nasdaq settled down by 2.78% percent.
Treasuries Recap
U.S. Treasury yields fell on Monday as fears that property developer China Evergrande Group might default deepened a global equity sell-off and spurred investors to buy safe-haven bonds.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 1 basis points at 0.216%.
The breakeven rate on five-year U.S. Treasury Inflation-Protected Securities (TIPS) was last at 2.482%.
Commodities Recap
Gold rose on Monday as fears about the solvency of Chinese property group Evergrande sparked a flight to safe-haven assets, but gains were capped by strength in the dollar ahead of the U.S. Federal Reserve’s policy meeting.
Spot gold rose 0.5% to $1,762.66 per ounce by 1753 GMT. U.S. gold futures settled 0.8% higher at $1,765.40.
Oil prices fell 2% on Monday as investors grew more risk averse, which hurt stock markets and boosted the U.S. dollar, making oil more expensive for holders of other currencies
Brent crude fell $1.42, or 1.9%, to settle at $73.92 a barrel after sinking to a session low of $73.52. U.S. West Texas Intermediate (WTI) declined $1.68, or 2.3%, to end at $70.29 after falling to as low as $69.86.