Market Roundup
• Canada Aug Trade Balance -2.45B,-2.45B,-2.00B forecast, -2.45B previous
• Canada Aug Exports 44.93B,44.93B, 45.43B previous
•US Exports 171.90B, 168.10B previous
•US Redbook (MoM) 0.0%, -0.3% previous
•US Redbook (YoY) 2.1%, 2.2% previous
•Russia Sep CPI (YoY) 3.7% forecast, 3.6% previous
•Russia Sep CPI (MoM) -0.1% forecast, 0.4% previous
•US Aug JOLTs Job Openings 6.493M, 6.685M forecast, 6.618M previous
•New Zealand GlobalDairyTrade Price Index2.2%, 3.6% previous
Looking Ahead - Economic events and other releases (GMT)
•23:50 Japan M2 Money Stock (YoY) 8.6%
•23:50 Japan M3 Money Supply 1,907.1T
•23:50 Japan Sep Foreign Reserves (USD) 1,398.5B previous
•01:50 Australia Home Loans (MoM) 10.7% previous
•03:00 China Imports (YoY) -2.1% previous
•03:00 China Exports (YoY) 9.5% previous
•05:00 Japan Aug Leading Index (MoM) 3.9 previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro edged higher against dollar on Tuesday as dovish comments from the European Central Bank chief were offset by a brighter tone in world markets that supported euro.ECB President Christine Lagarde said a second wave of the coronavirus pandemic risks delaying the euro zone’s economic recovery.Her remarks appeared to reinforce an expectation in bond markets that more ECB stimulus is likely in the months ahead, especially given that euro zone inflation fell deeper into negative territory last month. Immediate resistance can be seen at 1.1798 (50% fib), an upside break can trigger rise towards 1.1878 (61.8%fib).On the downside, immediate support is seen at 1.1754 (5 DMA), a break below could take the pair towards 1.1711 (38.2% fib).
GBP/USD: Sterling edged lower against the dollar on Tuesday as investors focus remained on Brexit deal. Britain and the EU are close to agreement on reciprocal social security rights for their citizens after Brexit. However, rising economic stress due to a resurgence of COVID-19 cases kept pound in a tight range.Britain is battling with rising cases of the new coronavirus infections. On Sunday, it recorded a record 22,961 cases, but that was caused by a glitch in the system, which has since been fixed.The government launched a programme on Monday aimed at helping those left jobless by the COVID-19 pandemic to get back into work. Immediate resistance can be seen at 1.2998 (50% fib), an upside break can trigger rise towards 1.3042 (Higher BB).On the downside, immediate support is seen at 1.2914 (5DMA), a break below could take the pair towards 1.2869 (38.2%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday as oil prices rose and data showed a slowdown in Canada's merchandise trade, with the loonie steadying after it notched an earlier two-week high. Canada’s trade deficit narrowed slightly in August to C$2.45 billion from a revised C$2.53 billion in July, Statistics Canada said. Exports and imports fell after two months of strong growth. U.S. crude prices were up 2.4% at $40.16 a barrel. The Canadian dollar was trading nearly unchanged at 1.3260 to the greenback. It touched its strongest intraday level since Sept. 21 at 1.3242. Immediate resistance can be seen at 1.3337(61.8%fib), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3269 (50%fib), a break below could take the pair towards 1.3206 (38.2%fib).
USD/JPY: The dollar edged lower against the Japanese yen on Tuesday after U.S. President Donald Trump called off negotiations with Democratic lawmakers on a coronavirus relief stimulus package until after the Nov. 3 election. Trump accused House of Representatives Speaker Nancy Pelosi of not negotiating in good faith. The dollar had dipped over the previous few days on optimism that a stimulus deal was near. The dollar index against a basket of major currencies jumped to a session high of 93.80, up 0.34% on the day. The greenback dipped 0.19% against the Japanese yen to 105.52 yen. Strong resistance can be seen at 105.82(38.2% fib), an upside break can trigger rise towards 106.38 (Higher BB).On the downside, immediate support is seen at 105.52(5 DMA), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European stocks stretched their gains for a fourth session on Tuesday, with banks surging more than 3% over growing hopes for a U.S. stimulus package, a Brexit trade deal as well as upbeat German data.
UK's benchmark FTSE 100 closed down by 1.0013 percent, Germany's Dax ended down by 0.52 percent, France’s CAC finished the day up by 1.32 percent.
U.S. stocks fell sharply and were down more than 1% in late afternoon trading Tuesday after President Donald Trump said he was calling off negotiations with Democratic lawmakers on coronavirus relief legislation until after the election.
Dow Jones closed down by -1.34%% percent, S&P 500 closed down by -1.40% percent, Nasdaq settled up by -1.57% percent.
Treasuries Recap
U.S. Treasury yields dropped from four-month peaks after President Donald Trump on Tuesday called off negotiations with Democratic lawmakers on a coronavirus relief stimulus package until after the Nov. 3 election.
U.S. 10-year yields dropped to 0.746%, from 0.762% late on Monday, after earlier rising to 0.792%, the highest level since June.
Commodities Recap
Oil prices rose more than 2% on Tuesday, supported by expected supply disruptions from a hurricane approaching the Gulf of Mexico and an oil worker strike in Norway.
Brent crude futures settled at $42.65 a barrel, up $1.36 a barrel, or 3.29%. U.S. West Texas Intermediate (WTI) crude settled at $40.67 a barrel, rising $1.45, or 3.7%. In post-close trading, however, Brent fell to $42.19 while U.S. crude dropped to $40.13 a barrel.
Gold inched higher on Tuesday buoyed by growing expectations that U.S. lawmakers would agree on new stimulus legislation to blunt the economic impact of the coronavirus, bolstering the metal’s appeal as a hedge against inflation.
Spot gold rose 0.05% to $1,913.76 per ounce by 9:57 a.m. EDT (1357 GMT), having hit its highest in almost two weeks on Monday at $1,918.36. U.S. gold futures fell 0.06% to $1,919.
