Posted at 11 October 2022 / Categories Market Roundups
Market Roundup
• French 6-Month BTF Auction 1.191% ,1.206% previous
• French 3-Month BTF Auction 0.781% ,0.646% previous
•US CB Sep Employment Trends Index 120.17 ,119.06 previous
Looking Ahead – Economic data (GMT)
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Looking Ahead - Events, Other Releases (GMT)
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Fxbeat
EUR/USD: The euro declined on Monday as dollar strengthened after a surprise drop in U.S. unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again. Headline consumer price inflation is seen slowing a touch to an annual 8.1%, but the core measure is forecast to accelerate to 6.5% from 6.3%. The U.S. CPI data will be released on Thursday at 8:30 am ET (1230 GMT). Minutes of the Fed’s last policy meeting are also out this week and are likely to sound hawkish given how many policy makers lifted their dot plot forecasts for rates. Immediate resistance can be seen at 0.9811(9DMA), an upside break can trigger rise towards 0.9843 (38.2%ib).On the downside, immediate support is seen at 0.9676(23.6%fib), a break below could take the pair towards 0.9581 (Lower BB).
GBP/USD: Sterling slid versus the dollar on Monday after Friday's strong U.S. labour market data supported bets the Federal Reserve will keep raising rates aggressively, though it recovered a little after Britain said it will publish independent budget forecasts this month. The pound dropped to a 10-day low of $1.1027, but recovered some ground after the Treasury said Britain will publish its medium-term fiscal plan and independent budget forecasts on Oct. 31. The British currency has had a volatile few weeks, falling to a record low of $1.0327 in late September, after markets were roiled by a series of unfunded tax cuts announced by the British government. Immediate resistance can be seen at 1.1191 (11DMA), an upside break can trigger rise towards 1.1158 (38.2%fib).On the downside, immediate support is seen at 1.0880 (23.6%fib), a break below could take the pair towards 1.0716 (Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as stronger dollar weaker commodities prices weighed on Canadian dollar. Dollar continued to strengthened against basket of currencies following Friday data which showed U.S. employers hired more workers than expected in September, while the unemployment rate dropped to 3.5%, providing ammunition to the Fed to deliver another hefty rate hike at its upcoming policy meeting.Fed fund futures are now pricing in a 90% chance of a 75-basis-point hike. The Canadian dollar was trading at 1.3776 to the greenback. Immediate resistance can be seen at 1.3795 (23.6%fib), an upside break can trigger rise towards 1.3836 (Sep 30th high).On the downside, immediate support is seen at 1.3737 (5 DMA), a break below could take the pair towards 1.3625 (38.2%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as strong U.S. jobs data cemented the view that the Federal Reserve would continue its policy of aggressive interest rate hikes. Data showed on Friday U.S. job growth slowed moderately in September, while the unemployment rate dropped, signalling a resilient economy and dousing hopes of a Fed pivot anytime soon. Traders are largely expecting another 75-basis-point rate increase at the Fed meet next month. The dollar stood at 145.68 yen but had so far shied away from the recent 24-year top of 145.90 for fear of Japanese intervention.Strong resistance can be seen at 145.76 (23.6% fib), an upside break can trigger rise towards 146.22(Higher BB).On the downside, immediate support is seen at 144.98 (23.6% fib ), a break below could take the pair towards 144.94 (5DMA).
Equities Recap
European stocks closed on a weak note on Monday as concerns about rising interest rates and their likely impact on global economic growth continued to weigh on sentiment, prompting investors to stay cautious about the near term outlook for the markets.
The UK's benchmark FTSE 100 closed down by 0.45 percent, Germany's Dax ended down by 0.07 percent, and France’s CAC finished the day down by 0.45 percent.
U.S. stocks fell on Monday, with the Nasdaq posting its lowest close since July 2020, as investors worried about the impact of higher interest rates and pulled out of chipmakers after the United States announced restrictions aimed at hobbling China's semiconductor industry.
Dow Jones closed down by 0.32 percent, S&P 500 closed down by 0.75 percent, Nasdaq settled down by 1.04 percent.
Treasuries Recap
The U.S. bond market was shut for the Columbus Day holiday on Monday
Commodities Recap
Oil prices sank by nearly 2% on Monday, after five straight sessions of gains, as investors worried that economic storm clouds could foreshadow a global recession and erode fuel demand.
Brent crude futures settled at $96.19 a barrel, down $1.73, or 1.8%. West Texas Intermediate crude settled at $91.13 a barrel, losing $1.51, 1.6%. Both benchmarks had risen over the previous week largely on expectations of tightening global supply.
Gold prices fell more than 1% on Monday, as an elevated dollar and solidifying bets for an aggressive interest rate hike from the U.S. Federal Reserve pushed the non-yielding bullion to its lowest in a week.
Spot gold fell 1.4% to $1,670.89 per ounce by 13:52 a.m. EDT (1752 GMT) while U.S. gold futures settled down 2% at $1,675.2.