Posted at 06 September 2022 / Categories Market Roundups
Market Roundup
• French 3-Month BTF Auction 0.039% ,-0.027% previous
• French 6-Month BTF Auction 0.160% ,0.084% previous
•French 12-Month BTF Auction 0.746%, 0.658% previous
Looking Ahead - Economic Data (GMT)
• 01:30 Australia Current Account (Q2) 20.8B forecast, 7.5B previous
•01:30 Australia Net Exports Contribution (Q2) 0.9% forecast, -1.7% previous
• 04:30 Australia Sep RBA Interest Rate Decision 2.35% forecast, 1.85% previous
Looking Ahead - Economic events and other releases (GMT)
•04:30 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro sank below $0.99 to a new 20-year low on Monday after Russia's halt to gas supplies down its main pipeline to Europe heightened fears about a deepening energy crisis across the region. Gas deliveries had been due to resume on Saturday, but Russia scrapped that deadline on Friday and did not give a new timeframe for re-opening. The news stoked fears of a recession in Europe, with businesses and households hurt by sky-high energy prices. European Union energy ministers will meet on Sept. 9 to discuss options to rein in soaring energy prices, including gas price caps and emergency credit lines for energy market participants. The euro slid to as low as $0.9876 , the lowest level since 2002. Immediate resistance can be seen at 0.9969(5DMA), an upside break can trigger rise towards 1.0049(38.2%fib).On the downside, immediate support is seen at 0.9899(23.6%fib), a break below could take the pair towards 0.9814(Lower BB).
GBP/USD: Sterling recovered from recent lows on Monday as investors looked ahead to the appointment of Liz Truss as Britain's new prime minister against a deteriorating economic backdrop. After weeks of an often bad-tempered and divisive leadership contest, Truss, who is UK's foreign minister, beat former finance minister Rishi Sunak in a vote of Conservative Party members. Truss takes over as the country faces a crunch on household finances, industrial unrest, a recession and war in Europe. She has vowed to press ahead with promised tax cuts and action to tackle a deepening energy and cost of living crisis. Immediate resistance can be seen at 1.1565(38.2%fib), an upside break can trigger rise towards 1.1672(38.2%fib).On the downside, immediate support is seen at 1.1437 (23.6%fib),a break below could take the pair towards 1.1401(Lower BB).
USD/CAD : The Canadian strengthened against its U.S. counterpart on Monday as higher oil prices boosted demand for commodity linked Canadian dollar. Oil prices rose about 3% on Monday, as OPEC+ members agreed to a small production cut of 100,000 barrels per day to bolster prices. The 100,000 barrels per day (bpd) reduction by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, amounts to only 0.1% of global demand. The group also agreed they could meet any time to adjust production before the next scheduled meeting on Oct. 5. The Canadian dollar was trading 0.07% higher at 1.3128 to the greenback. Immediate resistance can be seen at 1.3144 (23.6%fib), an upside break can trigger rise towards 1.3174(Daily high).On the downside, immediate support is seen at 1.3089 (9DMA), a break below could take the pair towards 1.3061 (38.2%fib).
USD/JPY: The dollar retreated against yen on Monday as cautious investors focused on the U.S. Federal Reserve's rate-hike path following a mixed jobs data. Dollar retreated flowing last week data which showed U.S. employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% suggested the labor market was starting to loosen. Fed’s next policy meeting is scheduled for Sept. 20-21. The dollar was last trading at 0.16 percent lower versus the Japanese yen at 140.35 . Strong resistance can be seen at 140.78(23.6%fib), an upside break can trigger rise towards 150.00 (Psychological level).On the downside, immediate support is seen at 139.87(5DMA), a break below could take the pair towards 138.59(38.2%fib).
Equities Recap
European stocks closed notably lower on Monday, weighed down by rising fears of energy rationing in Europe following Russia's decision to extend a halt on gas flows through the Nord Stream 1 gas pipeline.
The UK's benchmark FTSE 100 closed up by 0.09 percent, Germany's Dax ended down by 2.22 percent, and France’s CAC finished the day down by 1.20 percent.
US stock market is closed on account of US Labour Day .
Commodities Recap
Gold prices held above the key $1,700 per ounce level on Monday, as hopes that the Federal Reserve might slow the pace of rate increases after mixed U.S. jobs data helped offset pressure from a robust dollar.
Spot gold was up about 0.1% at $1,712.89 per ounce by 1302 GMT. U.S. gold futures rose 0.1% to $1,724.10.
Oil prices rose more than 3%, extending gains as OPEC+ producers agreed a small oil production cut to bolster prices.
U.S. crude rose $2 to $88.85 per barrel, a 2.3% rise after a 0.3% gain in the previous session, in thin volumes during the U.S. Labor Day holiday.
Brent crude futures for November delivery settled $2.72 higher at $95.74 a barrel, a 2.92% gain.