Posted at 19 October 2021 / Categories Market Roundups
Market Roundup
•Swiss Sep Trade Balance 5.052B , 5.055B previous
•Spanish Trade Balance -3.90B,-1.60B previous
•EU Aug Construction Output (MoM) -1.28%, 0.09% previous
Looking Ahead - Events, Other Releases (GMT)
•12:30 US Sep Building Permits (MoM) 5.6% previous
•12:30 US Sep Building Permits 1.680M forecast, 1.721M previous
•12:30 US Sep Housing Starts (MoM) 3.9% previous
•12:30 US Sep Housing Starts 1.620M forecast, 1.615M previous
•12:55 US Redbook (YoY) 14.8% previous
•14:30 New Zealand GlobalDairyTrade Price Index 0.0% previous
Looking Ahead Economic Data (GMT)
•15:00 FOMC Member Daly Speaks
•15:00 German Buba Mauderer Speaks
•17:15 US FOMC Member Bowman Speaks
•18:50 US FOMC Member Bostic Speaks
•19:00 US Fed Waller Speaks
Fxbeat
EUR/USD: The euro strengthened on Tuesday as dollar was under pressure as weak U.S. factory data tempered expectations about any near-term interest rate increases . The dollar index slipped 0.13% and was last at 93.83 near its lowest level this month, losing ground on sterling and the euro , though holding its position against the yen. The focus on Tuesday will be on European Central Bank speakers. Investors will also watch several speakers from the Bank of England and the U.S. Federal Reserve. Immediate resistance can be seen at 1.1691 (50%fib), an upside break can trigger rise towards 1.1740(61.8%fib).On the downside, immediate support is seen at 1.1638 (38.2%fib), a break below could take the pair towards 1.1572(23.6%fib).
GBP/USD: The British pound steadied against the dollar on Tuesday as expectations mount that central bank policymakers will act as soon as November to hike interest rates in a bid to curb inflation.Bank of England Governor Andrew Bailey on Sunday sent perhaps the clearest signal yet of a pending hike, saying the BoE will have to act to deal with rising energy costs in Britain which threaten a surge in consumer prices. The pound on Tuesday rose 0.4% to $1.3784, a level last seen on Sept. 17. Immediate resistance can be seen at 1.3803(23.6%fib),an upside break can trigger rise towards 1.3838(Higher BB).On the downside, immediate support is seen at 1.3730(38.2%fib), a break below could take the pair towards 1.3665(23.6%fib).
USD/CHF: The dollar declined against Swiss franc on Tuesday as dollar was knocked by weak U.S. factory data overnight. U.S. manufacturing output was hurt as an ongoing global shortage of semiconductors depressed motor vehicle output, providing further evidence that supply constraints were hampering economic growth. The dollar index , which measures the greenback against six peers, weakened 0.05% to 93.894 from Monday. Immediate resistance can be seen at 0.9219(50%fib), an upside break can trigger rise towards 0.9253(61.8%fib).On the downside, immediate support is seen at 0.9184(38.2%fib), a break below could take the pair towards 0.9143(23.6%fib).
USD/JPY: The dollar dipped against yen on Tuesday as weak US manufacturing data knocked the dollar down. Data on Friday showed U.S. factory production dropped the most in seven months in September, as an on-going global semiconductor shortage depressed motor vehicle output, further evidence that supply constraints were hampering economic growth.The dollar was last trading down 0.14% against yen at 114.16. Strong resistance can be seen at 114.55(23.6%fib), an upside break can trigger rise towards 115.00(Psychological level).On the downside, immediate support is seen at 113.95(38.2%fib), a break below could take the pair towards 113.50(50%fib).
Equities Recap
European shares fell on Monday after weaker-than-expected growth data from China hit luxury stocks, while a relentless surge in commodity prices fuelled worries about inflation spiralling out of control.
At (GMT 09:42 ),UK's benchmark FTSE 100 was last trading up at 0.06 percent, Germany's Dax was down by 0.01 % percent, France’s CAC was last down by 0.04 percent.
Commodities Recap
Gold rose on Tuesday, with a weaker dollar and U.S. bond yields providing some support to the precious metal, even as central banks move towards easing economic stimulus.
Spot gold rose 0.7% to $1,776.03 per ounce by 0620 GMT, while U.S. gold futures gained 0.7% to $1,778.20.
Oil prices rose on Tuesday as a supply crunch in natural gas, electricity and coal continued across the globe while falling temperatures in China revived concerns over whether the world's biggest energy consumer can meet domestic demand for heating.
The Brent crude benchmark rose 35 cents, or 0.4%, to $84.68 a barrel by 0827 GMT after falling 0.6% on Monday. The contract is still up nearly 7% this month.
U.S. West Texas Intermediate (WTI) futures gained 70 cents, or 0.9%, to $83.14, having risen 0.2% in the previous session and nearly 10% this month.