Market Roundup
• U.S. Fed minutes due on Wednesday
• Trade talks scheduled in Washington on Oct. 10-11
• US Sep CB Employment Trends Index 111.00, 110.70 previous
• Brazil Sep Auto Production (MoM) 8.3%, 1.1% previous
• Brazil Sep Auto Sales (MoM) 3.3%,-0.3% previous
• US Aug Consumer Credit 15.25B forecast 23.29B previous
Looking Ahead - Economic Data (GMT)
• 23:00 UK Sep BRC Retail Sales Monitor (YoY) -0.5% previous
• 23:30 Japan Average Cash Earnings (YoY) -0.3% previous
• 23:30 Japan Aug Household Spending (MoM)
• 23:30 Japan Aug Household Spending (YoY) 1.2% forecast, 0.8% previous
• 23:30 Japan Aug Overall wage income of employees -1.0% previous
• 23:30 Japan Aug Overtime Pay (YoY) 0.60% previous
• 23:50 Japan Aug Current Account 2.070T forecast, 2.000T previous
• 00:30 New Zealand ANZ Job Advertisements (MoM) 2.8% forecast,-2.8% previous
• 00:30 New Zealand Sep NAB Business Confidence 1 previous
• 01:45 China Sep Caixin Services PMI 52.1 forecast, 52.1 previous ,
Looking Ahead - Events, Other Releases (GMT)
• 04:10 BoE Gov Carney Speaks
• 17:50 US Fed Chair Powell Speaks
• 17:35 US Chicago Fed President Evans Speaks
• 22:00 US FOMC Member Kashkari Speaks
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Monday, as traders awaited U.S.-China trade talks later in the week for clues to the state of the prolonged trade war between Washington and Beijing. Investors’ overall appetite for risk was weak on Monday after a Bloomberg report said that Chinese officials were reluctant to agree to U.S. President Donald Trump’s broad trade deal.Top-level U.S.-China trade talks are scheduled to resume next Thursday and Friday. The euro was down 0.06 percent at $1.0974. An index that tracks the dollar versus a basket of six major currencies was down 0.13 at 98.68. Immediate resistance can be seen at 1.1000 (21 DMA), an upside break can trigger rise towards 1.1058 (50 DMA).On the downside, immediate support is seen at 1.0943 (9 DMA), a break below could take the pair towards 1.2900 (Psychological level).
GBP/USD: The British pound declined against dollar on Monday, as concerns rose that sizeable differences between Britain and the European Union remained for striking a Brexit withdrawal deal.British lawmakers have passed a law requiring Prime Minister Boris Johnson to seek a delay to Brexit if the UK cannot agree a withdrawal deal by Oct. 19. But a report in the Daily Telegraph said Johnson intended to challenge that law, the Benn Act, in the Supreme Court. Sterling traded 0.1% lower at $1.2323. It was down 0.3% against the euro at 89.22 pence.Immediate resistance can be seen at 1.2335 (11 DMA), an upside break can trigger rise towards 1.2423 (100 DMA).On the downside, immediate support is seen at 1.2246 (50 DMA), a break below could take the pair towards 1.2200 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as oil prices rose, but the currency's gains were modest ahead of trade talks this week between the United States and China. The modest gain for the loonie follows data on Friday showing that Canada's trade deficit shrank by almost a third in August to C$955 million as exports broke a two-month slump, rising by 1.8%.At 9:11 a.m. (1311 GMT), the Canadian dollar was trading 0.1% higher at 1.3293 to the greenback. The currency, which weakened 0.4% last week, traded in a range of 1.3291 to 1.3331.Immediate resistance can be seen at 1.3347 (Oct 2nd), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3293 (5 DMA), a break below could take the pair towards 1.3276 (11 DMA).
USD/JPY: The U.S. dollar rose against the yen on Monday, as broadly positive U.S. jobs data from last week quelled some fears about an economic slowdown, but nervousness over U.S.-China trade talks persisted. The United States and China are set to meet for trade negotiations in Washington on Oct. 10-11, although latest news reports suggest Beijing may be looking to restrict the scope of any deal. The dollar index, which measures the greenback against six other major currencies, was 0.2% lower at 98.009. Strong resistance can be seen at 107.48 (5 DMA), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 106.93 (50 DMA), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares rose on Monday, after their steepest weekly loss in two months, as bids in defensive shares outweighed nervousness ahead of crucial U.S.-China trade talks and Brexit negotiations.
The UK's benchmark FTSE 100 closed up by 0.59 percent, Germany's Dax ended up by 0.70 percent, and France’s CAC finished the up by 0.61 percent.
U.S. stocks eased on Monday as reports on the U.S.-China trade front kept investors cautious ahead of scheduled talks later in the week..
Dow Jones closed up by 0.36 percent, S&P 500 ended down 0.46 percent, Nasdaq finished the day down by 0.33 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as the $78 billion in note and bond supply slated for auction helped push prices lower after last week’s dramatic rise.
The two-year yield, which last week fell 22.6 basis points, rose 6.4 basis points to 1.462%. The benchmark 10-year yield was up 3.9 basis points, having fallen 15.9 basis points last week.
Commodities Recap
Gold prices eased on Monday as the dollar firmed after a report said China was reluctant to agree to a broad trade deal with Washington, but bullion held a tight range as investors took a wait-and-see approach ahead of U.S.-China talks this week.
Spot gold was down 0.3 % at $1,499.79 per ounce at 1129 GMT. Prices firmed 0.5% last week on concerns of slowing global growth.U.S. gold futures slipped 0.5% to $1,505.30 per ounce.
Oil prices settled lower on Monday, paring earlier gains as hopes of a comprehensive U.S.-China trade deal faded and a new poll showed analysts expected U.S. oil crude inventories to have risen last week.
Brent crude settled down 2 cents, or 0.03%, at $58.35 a barrel, after hitting a high of $59.68. U.S. West Texas Intermediate (WTI) crude settled at $52.75, down 6 cents or 0.11%, after hitting a high of $54.06.
