Posted at 02 November 2021 / Categories Market Roundups
Market Roundup
• Swiss Oct CPI (YoY) 1.2%, 1.1% forecast, 0.9% previous
• Swiss Oct CPI (MoM) 0.3%,0.1% forecast, 0.2% previous
• Swiss Sep Retail Sales (YoY) 2.5%,0.5% previous
• Italian Oct Manufacturing PMI 61.1,59.7 forecast, 59.7 previous
•French Oct Manufacturing PMI 53.6, 53.5 forecast, 53.5 previous
•German Oct Manufacturing PMI 57.8,58.2 forecast, 58.2 previous
• EU Oct Manufacturing PMI 58.3,58.5 forecast, 58.5 previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Sep Building Permits (MoM) 3.1% forecast, -2.1% previous
•12:55 US Redbook (YoY) 15.6% previous
•14:00 French 12-Month BTF Auction -0.636% previous
•14:00 French 3-Month BTF Auction -0.736% previous
•14:00 French 6-Month BTF Auction -0.685% previous
•14:00 US IBD/TIPP Economic Optimism 46.8 previous
•14:30 New Zealand Global Dairy Trade Price Index 2.2% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro initially edged higher but trimmed earlier gains as investors retained their bets for two rate hikes from the ECB next year.ECB President Christine Lagarde disappointed expectations of a firm pushback against the recent market pricing of two hikes next year, which are at odds with the bank's inflation outlook. The dollar index , which tracks the greenback versus a basket of six currencies, fell 0.326%, with the euro up 0.39% to $1.1605. Immediate resistance can be seen at 1.1610 (5DMA), an upside break can trigger rise towards 1.1642 (50%fib).On the downside, immediate support is seen at 1.1588 (38.2 % fib), a break below could take the pair towards 1.1526 (23.6%fib).
GBP/USD: The pound edged lower on Tuesday, hovering around a three-week low, pressured by uncertainty whether the Bank of England will raise interest rates this week. BoE Governor Andrew Bailey has talked of the need to act to contain inflation expectations, with two of the other nine Monetary Policy Committee members voicing similar concerns. Meanwhile, two MPC members say there is little they can do to fix the root cause of accelerating prices: bottlenecks caused by the reopening of the world economy which might fade quickly. Sterling slid 0.2% versus the dollar to $1.3637 at 0830 GMT, hitting a three-week low.Immediate resistance can be seen at 1.3680 (38.2%fib), an upside break can trigger rise towards 1.2703 (50 DMA).On the downside, immediate support is seen at 1.3619 (50%fib), a break below could take the pair towards 1.3558 (61.8%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday ahead of the Federal Reserve’s policy decision on Wednesday. Markets are expecting the central bank to start tapering stimulus, but see price and wage increases as a challenge as policymakers try to give the economy as much time as possible to restore the jobs lost since the pandemic. The dollar drifted lower after posting its biggest daily rise in more than four months last Friday as hedge funds pared bearish bets before the Federal Reserve's policy meeting this week.Immediate resistance can be seen at 0.9133(5 DMA), an upside break can trigger rise towards 0.9142 (38.2% fib).On the downside, immediate support is seen at 0.9100 (23.6%fib), a break below could take the pair towards 0.9086 (Daily low ).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as investors await clarity from the U.S. Federal Reserve as to whether it will might raise interest rates sooner than they anticipated several months ago, before a sustained bout of inflation. The Fed is expected to approve plans to scale back its bond-buying programme on Wednesday, when it concludes a two-day policy meeting.Markets will also be watching the Bank of England policy meeting on Thursday as investors weigh chances of the first interest rate hike by a major central bank since the pandemic.Strong resistance can be seen at 113.37 (38.2%fib), an upside break can trigger rise towards 114.42 (23.6%fib).On the downside, immediate support is seen at 113.34(50% fib), a break below could take the pair towards 112.89 (61.8%fib).
Equities Recap
European shares eased from record levels on Tuesday as traders eyed upcoming central bank meetings for clues on tapering and rate decisions, while a plunge in iron ore prices hurt miners.
At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading down at 0.62 percent, Germany's Dax was up by 0.50 percent, France’s CAC was last up by 0.20 percent.
Commodities Recap
Gold prices were subdued on Tuesday ahead of a crucial U.S. Federal Reserve meeting that could offer cues on future interest rate hikes amid rising inflationary pressures.
Spot gold edged down 0.04% to $1,792.25 per ounce by 1037 GMT. U.S. gold futures for December delivery dipped 0.04% to $1,795.00 per ounce.
Oil steadied near $85 a barrel on Tuesday, not far from a multi-year high, supported by signs that supply from OPEC and other producers is falling short, although expectations of a rise in U.S. inventories was weighing.
Brent crude was unchanged at $84.71 a barrel by 1100 GMT, while U.S. West Texas Intermediate (WTI) crude fell 18 cents, or 0.2%, to $83.87.