Market Roundup
• US Sep Markit Composite PMI 54.3, 54.4 forecast, 54.6 previous
• US Sep Services PMI 54.6, 54.6 previous, 54.6 previous
• US Sep ISM Non-Manufacturing Business Activity 63.0, 61.0 forecast, 62.4 previous
• US Sep ISM Non-Manufacturing PMI 57.8,56.3 forecast, 56.9 previous
• US Sep ISM Non-Manufacturing Employment 51.8, 47.9 previous
• US Sep ISM Non-Manufacturing New Orders 61.5, 56.8 previous
• US CB Employment Trends Index 54.80,52.55 previous
Looking Ahead - Events, Other Releases (GMT)
• 00:30 Australia Aug Imports (MoM) 7% previous
• 00:30 Australia Aug Trade Balance 5.154B forecast, 4.607B previous
• 00:30 Australia Exports (MoM) -4% previous
• 01:30 Australia ANZ Job Advertisements (MoM) 1.6% previous
• 03:30 Australia Oct RBA Interest Rate Decision 0.25% forecast,0.25% previous
Looking Ahead - Events, Other Releases (GMT)
• 03:30 Australia RBA Rate Statement
Currencies Summaries
EUR/USD: The euro gained on Monday as weaker dollar offset uncertainty over U.S. President Donald Trump's health. Trump could be discharged from hospital as soon as Monday, according to his doctors, although his condition remains unclear and outside experts warn his case may be severe. Sentiment appeared to be improving on Monday, after better-than-expected business activity readings from the euro zone.But spiking coronavirus cases in parts of the bloc have raised concerns over a fresh batch of lockdowns. The euro gained 0.50% to $1.1786, the highest since Sept. 21. Immediate resistance can be seen at 1.1785 (Daily high), an upside break can trigger rise towards 1.1800 (50%fib).On the downside, immediate support is seen at 1.1740 (5DMA ), a break below could take the pair towards 1.1711 (38.2% fib).
GBP/USD: Sterling strengthened against dollar on Monday as investor’s awaited news on Brexit trade deal. British Prime Minister Boris Johnson and the head of the EU’s executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up Brexit talks to close “significant gaps” barring a new trade partnership. Both sides said they have made some progress but not achieved yielded a breakthrough. Johnson does not want the Brexit transition to end without a new trade deal in place, he said on Sunday, but he believes Britain could live with such an outcome. The pound was last trading up 0.12% versus the dollar at $1.2990 .Immediate resistance can be seen at 1.3008 (50%fib), an upside break can trigger rise towards 1.3056 (Higher BB).On the downside, immediate support is seen at 1.2914 (5DMA), a break below could take the pair towards 1.2873 (38.2%fib).
USD/CAD: The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Monday, tracking improvement in risk appetite ahead of domestic data later in the week that could help guide expectations about the strength of economic recovery. Global shares and the price of oil, one of Canada's major exports, rose as suggestions U.S. President Donald Trump's health was improving brought relief to markets and after U.S. House Speaker Nancy Pelosi said progress was being made on additional fiscal stimulus. The Canadian dollar was trading 0.3% higher at 1.3268 to the greenback. The currency touched its strongest intraday level since Sept. 21 at 1.3263. Immediate resistance can be seen at 1.3269 (50%fib), an upside break can trigger rise towards 1.3289 (5DMA).On the downside, immediate support is seen at 1.3238 (50DMA), a break below could take the pair towards 1.3209 (38.2%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as financial markets waited for news about U.S. President Donald Trump’s health and developments in fiscal aid talks in Washington. Trump said on Friday he had tested positive for COVID-19, triggering concern in the market as the news added an extra layer of uncertainty to the Nov. 3 presidential elections. The dollar rose 0.3% against the yen to 105.77 at 23:00 GMT. Dollar-yen saw its sharpest fall in more than a month on Friday. Strong resistance can be seen at 105.68 (38.2% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 105.57 ( 5DMA ), a break below could take the pair towards 104.65 (23.6%fib).
Equities Recap
European shares closed at a two-week high on Monday, as positive updates on U.S. President Donald Trump's health, a U.S. stimulus package and a spate of dealmaking activity lifted investor spirits.
UK's benchmark FTSE 100 closed up by 0.69 percent, Germany's Dax ended up by 1.10percent, France’s CAC finished the day up by 0.97 percent.
Growing risk appetite helped push U.S. stocks prices higher on Monday as renewed optimism surrounding stimulus negotiations and news of President Donald Trump’s health progress helped calm investor anxiety.
Dow Jones closed up by 1.68 percent, S&P 500 closed up by 1.80 percent, Nasdaq settled up by 2.32 % percent.
Treasuries Recap
U.S. Treasury yields rose on Monday, as expectations grew that a stimulus package to combat the economic devastation caused by the pandemic could be completed before the November presidential election.
U.S. 10-year, 20-year, and 30-year yields rose to five-week highs, while the yield curve steepened to its widest since late August.
Commodities Recap
Gold inched up on Monday as the dollar weakened, although gains were limited as news that U.S. President Donald Trump, receiving treatment for COVID-19, could be released from hospital boosted risk sentiment.
Spot gold was up 0.1% at $1,900.46 per ounce by 0954 GMT. U.S. gold futures were down 0.2% at $1,904.50.
Oil prices climbed more than 5% on Monday after U.S. President Donald Trump said he will leave the hospital where he is being treated for COVID-19, while six Norwegian offshore oil and gas fields were shut as more workers joined a strike.
Brent rose $2.02, or 5.1%, to settle at $41.29 a barrel. U.S. West Texas Intermediate (WTI) crude rose $2.17, or 5.9%, to settle at $39.22 a barrel.
