Posted at 12 October 2021 / Categories Market Roundups
Market Roundup
•French 6-Month BTF Auction -0.675%,-0.679% previous
•French 3-Month BTF Auction -0.740%, -0.756% previous
•French 12-Month BTF Auction -0.641%, -0.648% previous
• US Sep CB Employment Trends Index 110.35,110.37 previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Sep Bank Lending (YoY) 0.6% previous
•23:50 Japan Sep PPI (YoY) 5.9% forecast, 5.5% previous
•23:50 Japan Sep PPI (MoM) 0.3% forecast, 1.1% previous
•00:00 Australia HIA New Home Sales (MoM) 5.8% previous
•00:00 Australia Sep NAB Business Survey 14 previous
•00:00 Australia Sep NAB Business Confidence -5 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged lower on Monday as dollar strengthened as investors remained confident the U.S. Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls figures . U.S. currency and fixed income markets are closed on Monday for a holiday but the yield on benchmark 10-year Treasuries hit a four-month high of 1.617% on Friday, even after data showed the U.S. economy created the fewest jobs in nine months in September, missing forecasts. The euro was softer at $1.1548, hovering a tad above Wednesday’s low of $1.1529, its weakest since July last year. Immediate resistance can be seen at 1.1573 (50%fib), an upside break can trigger rise towards 1.1591(10DMA).On the downside, immediate support is seen at 1.1541(38.2%fib), a break below could take the pair towards 1.1500(Psychological level).
GBP/USD: Sterling dipped against the dollar on Monday early rally on hawkish BOE comments faded as Brexit resurfaced. Britain and Ireland traded barbs on Sunday after British Brexit negotiator David Frost restated his view that the EU must agree significant change to the Northern Ireland protocol that governs trade and border rules in the province. Sterling dipped 0.2% versus the dollar to $1.3586, after briefly touching a two-week high 1.3677. Immediate resistance can be seen at 1.3615(38.2%fib),an upside break can trigger rise towards 1.3636(21DMA).On the downside, immediate support is seen at 1.3565(Oct 7th low), a break below could take the pair towards 1.3531(23.6%fib).
USD/CAD: The Canadian dollar dipped against its U.S. counterpart on Monday as a dollar rally added to risk aversion spurred by worries about a global energy crunch. Oil and coal shortages have hit several major economies in recent weeks, with factory shutdowns in China. Oil prices jumped on Monday to the highest levels in years, fuelled by rebounding global demand that has contributed to power and gas shortages in key economies like China. The dollar rallied on rising bets that the U.S. Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls. Immediate resistance can be seen at 1.2497(38.2%fib), an upside break can trigger rise towards 1.2563 (23.6%fib).On the downside, immediate support is seen at 1.2442(50%fib), a break below could take the pair towards 1.2391 (61.8%fib).
USD/JPY: The dollar rose to 2-1/2-year high versus the yen on Monday as investors remained confident the U.S. Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls figures. Traders shrugged off Friday's mostly lacklustre jobs report, pushing U.S. bond yields higher. The yen, which is known for being particularly sensitive to interest rate differentials, hit 113 yen per dollar for the first time since December 2018.The dollar index, which measures the greenback against a basket of peers, was up 0.054% at 94.215, not far from its one-year high of 94.504 touched earlier this month. Strong resistance can be seen at 113.40(23.6%fib), an upside break can trigger rise towards 114.00(Psychological level).On the downside, immediate support is seen at 112.87(38.2%fib), a break below could take the pair towards 112.44 (50%fib).
Equities Recap
A strong rally in mining stocks on Monday boosted an index of European equities, which retraced all losses logged early in the session on worries about inflation and the upcoming earnings season.
UK's benchmark FTSE 100 closed up by 0.72 percent, Germany's Dax ended down by 0.05 percent, France’s CAC finished the day up by 0.16 percent.
U.S. stocks ended a choppy session lower on Monday as investors grew nervous ahead of third-quarter earnings reporting season.
Dow Jones was trading down by 0.72 percent, S&P 500 was trading lower by 0.69 percent, Nasdaq was trading down by 0.64 percent.
Commodities Recap
Gold prices edged lower on Monday, weighed by a rallying dollar on bets the U.S. Federal Reserve would not put off stimulus tapering, although stagflation expectations limited losses in inflation-hedge bullion.
Spot gold was 0.1% lower at $1,754.54 per ounce by 2:08 p.m. EDT (1808 GMT), while U.S. gold futures settled down 0.1% at $1,755.7.
Oil prices jumped on Monday to the highest levels in years, fuelled by rebounding global demand that has contributed to power and gas shortages in key economies like China.
Brent crude rose $1.26, or 1.5%, to settle at $83.65 a barrel. The session high was $84.60, its highest since October 2018.
U.S. West Texas Intermediate (WTI) crude gained $1.17, or 1.5%, to settle at $80.52, after touching its highest since late 2014 at $82.18.