Market Roundup
• Dollar dips to hit 4-week low versus yen
• U.S. services sector marks slowest growth in 3 years
• Canadian dollar falls 0.10% against the greenback
• Price of U.S. oil decreases 1.8%
• US Sep Challenger Job Cuts 41.557K, 53.480K previous
• US Continuing Jobless Claims 1,651K, 1,645K forecast, 1,656K previous
• US Initial Jobless Claims 219K, 215K forecast 215K previous
• Brazil Sep Markit Composite PMI 52.5, 51.9 previous
• Brazil Sep Markit Services PMI 51.8, 51.4 previous
• Russia Central Bank Reserves (USD) 531.8B, 532.6B previous
• US Sep Markit Composite PMI 51.0, 51.0 forecast, 50.7 previous
• US Sep Services PMI 50.9, 50.9 forecast, 50.7 previous
• US Aug Durables Excluding Defense (MoM) -0.6%,-0.6% previous
• US Aug Factory Orders (MoM) -0.1%,-0.2% forecast, 1.4% previous
• US Aug Factory orders ex transportation (MoM) 0.0%, 0.2% previous
• US Sep ISM Non-Manufacturing Employment 50.4, 53.1 previous
• US Sep ISM Non-Manufacturing New Orders 53.7, 60.3 previous
• US Sep ISM Non-Manufacturing PMI 52.6, 55.0 forecast, 56.4 previous
Looking Ahead - Economic Data (GMT)
• 01:30 Australia Aug Retail Sales (MoM) 0.5% forecast, -0.1% previous
Looking Ahead - Economic Data (GMT)
• 03:20 Australia RBA Assist Gov Ellis Speaks
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Thursday, as investors feared that contraction in both the U.S. manufacturing and service sector signals a slowdown in the world’s biggest economy. Data on Thursday showed that the Institute for Supply Management’s services sector index fell to 52.6 in September from 56.4 the previous month. Last month’s index was the lowest in three years amid rising concerns about tariffs. The survey’s employment index also slid to 50.4 from 53.1 in August. September’s employment index was the weakest since February 2014. The euro was up 0.10 percent at $1.0969. Immediate resistance can be seen at 1.1001 (21 DMA), an upside break can trigger rise towards 1.1060 (50 DMA).On the downside, immediate support is seen at 1.0940 (5 DMA), a break below could take the pair towards 1.0900 (Psychological level).
GBP/USD: Britain's pound rose against the dollar on Thursday, as weaker dollar and Brexit deal hopes lifted British pound. The United Kingdom is due to leave the EU, both sides are positioning themselves for fair Brexit deal. The British government on Wednesday proposed an all-island regulatory zone in Ireland to cover all goods, replacing the so-called backstop arrangement, and was waiting for an official response from its European counterparts. By 2027 GMT sterling was up 0.37% at $1.2339. Against the euro, the pound was up 0.6% at 88.64 pence. Immediate resistance can be seen at 1.2375 (11 DMA), an upside break can trigger rise towards 1.2431 (100 DMA).On the downside, immediate support is seen at 1.2253 (50 DMA), a break below could take the pair towards 1.2267 (50 DMA).
USD/CAD: The Canadian dollar declined to hit 4-month week low against its U.S. counterpart on Thursday, as investors were worried that a slowdown in U.S. manufacturing activity could hurt Canada's economy. The U.S. dollar declined against a basket of major currencies after downbeat domestic employment and manufacturing data. Oil prices fell after official data showed a rise in U.S. crude inventories, adding to worries about an oversupplied market as weak economic readings in the United States depressed global financial markets. At (2032 GMT),the Canadian dollar was trading 0.10% higher at 1.3366 to the greenback. Immediate resistance can be seen at 1.3356 (Higher BB), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at at 1.3292 (200 DMA), a break below could take the pair towards 1.3250 (100 DMA).
USD/JPY: The dollar declined to hit four-week low against Japanese yen on Thursday, as downbeat US employment and manufacturing data weighed on dollar. U.S. services sector growth hit its slowest pace in three years last month, and job growth in the largest segment of the economy was the weakest in half a decade, a survey of purchasing managers showed. The weaker-than-expected U.S. economic data weighed on global financial markets, extending a stock slide that has pushed world equity benchmarks back to lows last seen in August. At (20:32 GMT),the dollar was 0.68 lower versus the Japanese yen at 106.87. Strong resistance can be seen at 107.32 (Daily High), an upside break can trigger rise towards 107.52 (5 DMA).On the downside, immediate support is seen at 106.49 (Daily Low), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
Euro zone shares made small gains on Thursday after their worst sell-off in two months a day earlier, as a rebound in Airbus and spirits makers outweighed the latest round of weak economic data from the euro zone and the United States.
UK's benchmark FTSE 100 closed down 0.63 percent, Germany's Dax ended down by 2.74 percent, France’s CAC finished the day up by 0.30 percent.
U.S. stocks turned positive in choppy trading on Thursday as U.S. services sector activity slowed to a three-year low, raising expectations of another interest rate cut by the Federal Reserve to stem a wider economic downturn.
Dow Jones closed up by 0.47 percent, S&P 500 ended up by 0.80 percent, Nasdaq finished the day up by 1.12 percent.
Treasuries Recap
U.S. bonds rallied for the sixth straight session on Thursday, leaving the two-year Treasury yield at its lowest since September 2017, as signs of a slowdown in U.S. manufacturing and services fanned recession fears.
The benchmark 10-year Treasury yield was last down 6.8 basis points at 1.529%, with the 30-year bond yield last down 5.3 basis points at 2.034%.
Commodities Recap
Gold jumped more than 1% to its highest in a week on Thursday as weak U.S. data deepened concerns over economic growth and bolstered bets for further interest rate cuts by the Federal Reserve.
Spot gold was up 0.5% at $1,506.45 per ounce by 1:52 p.m. EDT (1752 GMT). Earlier, prices had hit their highest since Sept. 25 at $1,518.50.U.S. gold futures settled 0.4% higher at $1,513.80 an ounce.
U.S. crude futures were slightly lower on Thursday, drawing some support from the stock market after earlier touching nearly two-month lows on weak economic data.
U.S. crude settled at $52.45 a barrel, down 19 cents. Global benchmark Brent crude settled up 2 cents at $57.71 a barrel.
