|   Market Roundups


  |   Market Roundups


America’s Roundup: Dollar scales fresh two-decade peak, Wall Street ends lower, Gold hovers near 2-1/2-year low, Oil prices slide $2/bbl, settle at 9-month lows-September 27th,2022

Market Roundup

•Canada Wholesale Sales (MoM) 0.8%, -0.6% previous

• French 6-Month BTF Auction 1.325%, 0.890% previous

• French 3-Month BTF Auction 0.681%,  0.686% previous

• French 12-Month BTF Auction 1.855%, 1.798% previous

•US Sep Dallas Fed Mfg Business Index -17.2,  -12.9 previous

•US 3-Month Bill Auction 2.880% ,3.270% previous

•US 6-Month Bill Auction 3.235% , 3.780% previous

Looking Ahead - Economic Data (GMT)

•01:30   China Aug Industrial profit (YoY)  0.80% previous

•01:30   China Aug Industrial profit YTD  -1.1% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro declined versus the dollar on Monday as euro was  weighed down by comments from European Central Bank President Christine Lagarde that interest rates will need to rise over the next policy meeting notwithstanding slowing growth.Investors were also digesting the victory of a right-wing bloc led by Giorgia Meloni in Italy's parliamentary elections on Sunday. On the data front,the Ifo institute said its business climate index fell to 84.3 from 88.5 in August, with both the current assessment component and expectations dropping significantly. Immediate resistance can be seen at 0.9716 (38.2%fib), an upside break can trigger rise towards 0.9803(5DMA).On the downside, immediate support is seen at 0.9600(Psychological level), a break below could take the pair towards 0.9555(23.6%fib).

GBP/USD: The British pound dropped to an all-time low against the dollar on Monday as investors worried Britain's new economic plan will hurt the country's finances . Sterling fell as much as 4.9% during Asian trading to an all-time low of $1.0327 , adding to Friday's 3.6% plunge following the unveiling of new Finance Minister Kwasi Kwarteng's historic tax cuts, funded by the biggest increase in borrowing since 1972. British government bond prices collapsed. Traders speculated the BoE might take emergency action to stem the currency's fall, but tumbled again after BoE Governor Andrew Bailey said the central bank was watching the markets, but did not signal any immediate action. Immediate resistance can be seen at 1.00730(38.2%fib), an upside break can trigger rise towards 1.0916(5DMA).On the downside, immediate support is seen at 1.0688(23.6%fib),a break below could take the pair towards 1.0600(Psychological level).

USD/CAD: The Canadian dollar tumbled to its lowest level in more than two years against its broadly stronger U.S. counterpart on Monday as investors worried that rising borrowing costs globally could tip major economies into recession. Canadian wholesale trade rose 0.8% in August from July, a preliminary estimate from Statistics Canada showed.  Inflation is too high in Canada, so the Bank of Canada needs to increase interest rates to slow spending and give the economy time to catch up, Governor Tiff Macklem said. U.S. crude oil futures extended their recent decline to settle 2.6% lower at $76.71 a barrel.The loonie was trading 1.1% lower at 1.3740 to the greenback, or 72.78 U.S. cents, after touching its weakest level since May 2020 at 1.3808.Immediate resistance can be seen at 1.3756 (38.2%fib), an upside break can trigger rise towards 1.3808 (Daily high).On the downside, immediate support is seen at 1.3675 (50%fib), a break below could take the pair towards 1.3600 (Psychological level).

USD/JPY: The dollar rose against yen on Monday as U.S. Federal Reserve's hawkish   stance on rate hikes boosted greenback. Surging inflation has prompted several central banks to tighten monetary policy. The U.S. central bank and a number of other major central banks raised interest rates last week, triggering concerns over the impact on growth. Last week, the Federal Reserve hiked interest rates by 75 bps for the third consecutive time and Chairman Jerome Powell said central bank officials are "strongly resolved" to bringing down inflation. Benchmark U.S. Treasury yields firmed near their highest level since 2011.Strong resistance can be seen at 145.25(23.6%fib), an upside break can trigger rise towards 145.84 (Higher BB).On the downside, immediate support is seen at 143.90(5DMA), a break below could take the pair towards 143.14(38.2%fib).

Equities Recap

European stocks closed broadly lower on Monday as investors made largely cautious moves amid mounting fears of a global recession due to rising interest rates.

The UK's benchmark FTSE 100 closed down by 0.03 percent, Germany's Dax ended down by 0.46 percent, and France’s CAC finished the day down  by 0.24 percent.

Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve's aggressive campaign against inflation could throw the U.S. economy into a sharp downturn.

Dow Jones closed down by 1.11 percent, S&P 500 ended down  by 1.03 percent, Nasdaq finished the down up by 0.60 percent.

Treasuries Recap

U.S. Treasury yields were up to new highs on Monday, rising in tandem with euro zone and British government debt yields amid concerns that central banks globally will keep tightening monetary policy to curb stubbornly high inflation.

Two-year Treasury yields  , which tend to be more sensitive to interest rate changes, rose to a fresh 15-year high of 4.237%, and benchmark 10-year note yields   were up about 5 basis points from their Friday close, climbing to 3.746%.

Gold prices hovered near a 2-1/2-year low on Monday, on higher Treasury yields and a stronger dollar, while jitters over rising U.S. interest rates dented appeal for non-yielding bullion.

Spot gold fell 1.2% to $1,623.79 per ounce by 2:35 p.m. EDT (1835 GMT), after dropping to $1,620.85, its lowest price since April 2020.U.S. gold futures settled 1.3% lower at $1,633.40.

Oil prices fell $2 a barrel on Monday, settling at nine-month lows in choppy trade, pressured by a strengthening dollar as market participants awaited details on new sanctions on Russia.

Brent crude futures for November settled down $2.09, or 2.4%, to $84.06 a barrel, plunging below levels reached on January 14.

U.S. West Texas Intermediate (WTI) crude for November delivery dropped by $2.06, or 2.3% to $76.71, the lowest since Jan. 6.

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