Posted at 09 November 2021 / Categories Market Roundups
Market Roundup
•US Oct Core PPI (YoY) 6.8%,6.8% forecast, 6.8% previous
•US Oct PPI (YoY) 8.6%,8.7% forecast, 8.6% previous
•US Oct PPI (MoM) 0.6%, 0.6% forecast, 0.5% previous
•US Oct Core PPI (MoM) 0.4%,0.5% forecast,0.2% previous
•US Redbook (YoY) 15.6%, 16.9% previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Oct M3 Money Supply 1,999.8T previous
•23:50 Japan Oct M2 Money Stock (YoY)
•05:20 Japan Oct PPI (MoM) 0.4% forecast,0.3 previous
•05:20 Japan Oct PPI (YoY) 7.0% forecast,6.3% previous
•05:20 Japan Sep Core Machinery Orders (MoM) 1.7%forecast,-2.4% previous
•05:30 New Zealand ANZ Business Confidence -13.4 previous
•06:00 Australia Oct Employment Change 50.0K forecast,-138.0Kp revious
•06:00 Australia Oct Unemployment Rate 4.8% forecast,4.6% previous
•06:00 Australia Oct Full Employment Change 26.7K previous
•07:30 China Oct Fixed Asset Investment (YoY) 6.3% forecast,7.3% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Tuesday as German investor morale rose in November. Investor sentiment in Germany rose unexpectedly in November on expectations that price pressures will ease at the start of next year and growth will pick up in Europe's largest economy, a survey showed on Tuesday. The ZEW economic research institute said its economic sentiment index increased to 31.7 from 22.3 points in October. The euro , which had dropped to a 15-month trough of $1.15135 last week, firmed 0.2% to $1.1590. Immediate resistance can be seen at 1.1593 (38.2%fib), an upside break can trigger rise towards 1.1646 (50%fib).On the downside, immediate support is seen at 1.1576 (5DMA), a break below could take the pair towards 1.1545 (Lower BB).
GBP/USD: Sterling was little changed against dollar on Tuesday as fading rate hike expectations continued to weigh on sentiment. Sterling fell sharply after the Bank of England surprised the market by leaving interest rates unchanged last week, while investors bet that policymakers will keep rates on hold for now. Markets are assigning an around 50% probability of a rate hike in December, while before the BoE meeting, they had priced two rate hikes by year-end. The pound flatlined against the dollar by 0820 GMT at $1.357, off a $1.3425 five-week low hit on Friday. Immediate resistance can be seen at 1.3608 (50%fib), an upside break can trigger rise towards 1.3672(61.8%fib).On the downside, immediate support is seen at 1.3546(38.2%fib), a break below could take the pair towards 1.3496(Lower BB).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, recovering from its weakest level in four weeks earlier in the session as oil prices rose and investors awaited fresh impetus for direction. The loonie was trading nearly unchanged at 1.2440 to the greenback, or 80.39 U.S. cents, after touching its weakest intraday level since Oct. 12 at 1.2485. The currency has traded in a narrow range around 1.2450 since Friday. The price of oil, one of Canada's major exports, settled 2.7% higher at $84.15 a barrel after the United States lifted travel restrictions and other signs of a global post-pandemic recovery boosted the demand outlook. Immediate resistance can be seen at 1.2482 (50%fib), an upside break can trigger rise towards 1.2537 (61.8%fib).On the downside, immediate support is seen at 1.2428 (38.2%fib), a break below could take the pair towards 1.2364(11 DMA).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as traders awaited inflation figures due in the U.S. to guide the interest rate outlook. U.S. producer prices increased solidly in October, data showed on Tuesday, indicating that high inflation could persist for a while amid tight supply chains related to the pandemic. But traders were holding back on big moves ahead of consumer price index data due on Wednesday. Economists polled see monthly CPI accelerating to 0.4% from the previous month’s 0.2% rise, with the closely watched year-on-year core measure gaining 0.3 percentage point to 4.3% . Strong resistance can be seen at 113.23 (38.2%fib), an upside break can trigger rise towards 113.48(5DMA).On the downside, immediate support is seen at 112.75(50% fib), a break below could take the pair towards 112.33(61.8%fib).
Equities Recap
European shares retreated from record highs on Tuesday, although strong corporate earnings and hopes of a recovery kept losses limited as investors awaited fresh cues from economic data due this week.
UK's benchmark FTSE 100 closed down by 0.36 percent, Germany's Dax ended down by 0.04 percent, France’s CAC finished the day down by 0.06 percent.
Wall Street closed lower on Tuesday, ending a multi-day rally of consecutive record closing highs as profit-taking and worries over ongoing inflation fueled a broad sell-off.
Dow Jones closed down by 0.31% percent, S&P 500 closed down by 0.35 % percent, Nasdaq settled down by 0.60% percent.
Treasuries Recap
U.S. Treasury real yields fell sharply on Tuesday as traders hedging against the possibility of rising prices scooped up inflation-linked securities, even as they also bought conventional debt as a low-risk investment.
The benchmark 10-year yield was down 6.3 basis points at 1.4341% in afternoon trading. The yield on the 30-year bond reached as low as 1.795%, the lowest since July, and was last down 6.6 basis points at 1.8218%.
Commodities Recap
Gold prices climbed to their highest level since early September on Tuesday in tandem with a softer dollar, as investors awaited U.S. inflation data scheduled for later in the week.
Spot gold rose 0.3% to $1,828.74 per ounce by 13:44 p.m. ET (1844 GMT), having earlier recorded its highest since Sept. 3 at $1,831.10. U.S. gold futures settled 0.2% higher at $1,830.80.
Oil prices rose to a two-week high on Tuesday after the United States lifted travel restrictions and other signs of a global post-pandemic recovery boosted the demand outlook, while supply remained tight.
Prices rallied after the U.S. Energy Information Administration (EIA) in its Short Term Energy Outlook (STEO) on Tuesday projected retail gasoline prices would decline over the next several months.