Market Roundup
•Swiss GDP (QoQ) (Q2) 0.3%,0.4% forecast, 0.5% previous
•Swiss GDP (YoY) (Q2)2.8%, 3.0% forecast, 4.4% previous
•Italian Aug Composite PMI 49.6, 47.7 previous
•Italian Aug Services PMI 50.5. 48.3 forecast, 48.4 previous
•French Aug Services PMI 51.2, 51.0 forecast, 53.2 previous
• German Aug Services PMI 47.7, 48.2 forecast, 49.7 previous
• EU Aug Services PMI 49.8 50.2 forecast, 51.2 previous
• EU Aug S&P Global Composite PMI 48.9, 49.2 forecast, 49.9 previous
•UK Aug Composite PMI 49.6, 50.9 forecast,52.1 previous
•UK Aug Services PMI 50.9, 52.5 forecast,52.6 previous
• EU Jul Retail Sales (MoM) 0.3%, 0.4% forecast,-1.2% previous
• French 3-Month BTF Auction 0.039% ,-0.027% previous
• French 6-Month BTF Auction 0.160% ,0.084% previous
•French 12-Month BTF Auction 0.746%, 0.658% previous
Looking Ahead - Economic Data (GMT)
No data ahead
Looking Ahead - Economic events and other releases (GMT)
•15:30 UK BoE MPC Member Mann
Fxbeat
EUR/USD: The euro sank below $0.99 to a new 20-year low on Monday after Russia's halt to gas supplies down its main pipeline to Europe heightened fears about a deepening energy crisis across the region.The euro has been increasingly correlated with natural gas prices in recent months, with the former falling when prices of the energy source rise.Europe is scrambling to wean itself off Russian supplies and build up reserves before the cold winter months, but investors reckon the hit to its economy will be huge. The euro slid to as low as $0.9876 in early European trade, the lowest level since 2002. Immediate resistance can be seen at 0.9969(5DMA), an upside break can trigger rise towards 1.0049(38.2%fib).On the downside, immediate support is seen at 0.9899(23.6%fib), a break below could take the pair towards 0.9814(Lower BB).
GBP/USD: Sterling plumbed a fresh post-pandemic low on Monday as Russia kept one of its main gas supply routes to Europe shut, adding to recession fears on the day that Britain is set to announce its new prime minister. The pound, one of the worst performing major currencies against the dollar this year, fell as low $1.1444 its weakest level since March 2020.It has been battered by a deteriorating economic outlook and stubbornly high inflation - partly due to soaring energy prices - and political uncertainty after Prime Minister Boris Johnson announced his intention to resign in July.And the latest slide in the pound comes just hours before Liz Truss is expected to be named leader of the governing Conservative Party and Britain’s next prime minister. Immediate resistance can be seen at 1.1565(38.2%fib), an upside break can trigger rise towards 1.1672(38.2%fib).On the downside, immediate support is seen at 1.1437 (23.6%fib),a break below could take the pair towards 1.1401(Lower BB).
USD/CHF: The dollar paused against the Swiss franc on Monday as cautious investors focused on the U.S. Federal Reserve's rate-hike path following a mixed jobs data. The Fed is seen sticking to sharp interest rate hikes in coming months to cool inflation, but rising U.S. unemployment and a slowdown in wage growth has traders betting that borrowing costs next year may not end up quite as high as previously anticipated. U.S. employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% suggested the labor market was starting to loosen. At 13:32 GMT, the dollar was 0.03 percent higher versus the Swiss franc at 0.9806 . Immediate resistance can be seen at 0.9833(Daily high), an upside break can trigger rise towards 0.9876 (23.6%fib).On the downside, immediate support is seen at 0.9779(38.2%fib), a break below could take the pair towards 0.9732(9DMA)
USD/JPY: The dollar strengthened against yen on Monday as rebounding Treasury yields took the sting out of a jobs report that suggested diminished inflationary pressures.Though the non-farm payrolls report revealed a workforce that could loosen the drum-tight labor market , investors appeared reluctant to push Treasury yields too low in the face of accelerating quantitative tightening and the Fed's pledge to tighten regardless of higher joblessness. At 13:32 GMT, the dollar was 0.32 percent higher versus the Japanese yen at 140.50 . Trading is expected to be thin with most U.S. markets closed for Labour Day holiday. Strong resistance can be seen at 140.59(23.6%fib), an upside break can trigger rise towards 141.53(Higher BB).On the downside, immediate support is seen at 139.33(5DMA), a break below could take the pair towards 138.93(38.2%fib).
Equities Recap
European shares tumbled on Monday after Russia extended a halt on gas flows on a major pipeline to Europe, sparking worries about surging energy prices and winter shortages in the region..
At (GMT 13:36),UK's benchmark FTSE 100 was last trading down at 0.16% percent, Germany's Dax was down by 2.18 % percent, France’s CAC was down by 1.36% percent
Commodities Recap
Gold prices held above the key $1,700 per ounce level on Monday, as hopes that the Federal Reserve might slow the pace of rate increases after mixed U.S. jobs data helped offset pressure from a robust dollar.
Spot gold was up about 0.1% at $1,712.89 per ounce by 1302 GMT. U.S. gold futures rose 0.1% to $1,724.10.
Oil prices rose more than 3% on Monday, extending gains as OPEC+ producers agreed a small oil production cut to bolster prices.
Brent crude futures futures for November delivery rose $3.43 to $96.45 a barrel, a 3.7% gain, by 9:14 a.m. EDT (1314 GMT).
U.S. West Texas Intermediate crude was up $2.94, or 3.4%, at $89.87 after a 0.3% gain in the previous session.
