Market Roundup
- EUR/USD -0.17%, USD/JPY 0.43%, GBP/USD -0.29%, EUR/GBP 0.14%
- DXY 0.26%, DAX -0.29%, FTSE 0.16%, Brent -0.85%, Gold -0.54%
- EZ Q3 GDP Flash Prelim y/y, 1.7%, 1.8% forecast, 2.1% previous
- EZ Oct Business Climate, 1.01, 1.14 forecast, 1.21 previous
- EZ Oct Economic Sentiment, 109.8, 110.0 forecast, 110.9 previous
- EZ Oct Industrial Sentiment, 3.0, 3.8 forecast, 4.7 previous
- EZ Oct Services Sentiment, 13.6, 14.0 forecast, 14.6 previous
- EZ Oct Consumer Confidence Final, -2.7, -2.7 forecast, -2.7 previous
- Germany Oct Unemployment Chg SA, -11k, -12k forecast, -23k previous
- France Q3 GDP Prelim q/q, 0.4%, 0.5% forecast, 0.2% previous
- Trump says he expects "great deal" with China, but more tariffs if not
- China's yuan falls to fresh 10-year low as trade war bites
- China should use FX reserves to stabilise yuan when needed-c.bank adviser
- Major Chinese banks seen swapping yuan for dollars in forwards – traders
- Brexit, bad debt among top risks facing euro zone banks, ECB says
- Global politics, soured debt among top risks for euro zone banks: ECB
- Japan's PM Abe says specific monetary policy steps up to BOJ to decide
Economic Data Ahead
- (0900 ET/1300 GMT) The S&P/Case-Shiller is expected to report that U.S. home price index of 20 metropolitan areas rose at an annualized rate of 5.8 percent in August, after rising 5.9 percent in the previous month.
- (1000 ET/1400 GMT) The U.S. Conference Board is expected to report that consumer confidence index declined to 136.0 in October from a reading of 138.4 in September.
- (1630 ET/2030 GMT) API reports its weekly crude oil stock.
Key Events Ahead
- (1530 ET/1930 GMT) Bank of Canada Governor Stephen Poloz will testify to the House of Commons.
FX Beat
DXY: The dollar index surged to a 2 1/2-month high, supported by concerns about an escalation of the U.S.-China trade war. The greenback against a basket of currencies trades up at 96.90, having touched a high of 96.93, its highest since August 15. FxWirePro's Hourly Dollar Strength Index stood at 76.72 (Slightly Bullish) by 1100 GMT.
EUR/USD: The euro declined, extending previous session losses after data showed the euro zone grew much less than expected in the third quarter and economic confidence continued to fall, as signs of distress became more evident in Italy. The European currency traded 0.1 percent down at 1.1359, having touched a low of 1.1335 on Friday, its lowest since August 1.6 FxWirePro's Hourly Euro Strength Index stood at -18.30 (Neutral) by 1000 GMT. Immediate resistance is located at 1.1432 (October 25 High), a break above targets 1.1493 (October 23 High). On the downside, support is seen at 1.1335 (October 26 Low), a break below could drag it till 1.1301 (August 15 Low).
USD/JPY: The dollar rallied to an over 1-week peak, after U.S. President Donald Trump stated that there will be a great deal with China on trade, however, warned more tariffs on Chinese goods if talks next month between U.S. President Donald Trump and Chinese President Xi Jinping failed to ease the trade war. The major was trading 0.4 percent up at 112.82, having hit a low of 111.37 on Friday, its lowest since September 13. FxWirePro's Hourly Yen Strength Index stood at -33.21 (Neutral) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. home price indices. Immediate resistance is located at 112.98 (September 25 High), a break above targets 113.28 (October 10 High). On the downside, support is seen at 112.08 (October 24 Low), a break below could take it lower 111.62 (September 15 Low).
GBP/USD: Sterling slumped to an over 2-month low, amid growing concerns over lack of progress in separation talks on the issues including the Irish border five months before Britain exits the European Union. The major traded 0.5 percent down at 1.2734, having hit a low of 1.2728 earlier; it’s lowest since August 19. FxWirePro's Hourly Sterling Strength Index stood at -175.14 (Highly Bearish) 1000 GMT. Immediate resistance is located at 1.2876 (September 4 High), a break above could take it near 1.2933 (September 3 High). On the downside, support is seen at 1.2704 (August 14 Low), a break below targets 1.2661 (August 15 Low). Against the euro, the pound was trading 0.3 percent down at 89.10 pence, having hit a low of 89.14, it’s lowest since October 3.
USD/CHF: The Swiss franc slumped to a 3-month low as the greenback surged on reports that showed U.S. consumer spending rose for a seventh straight month in September. The major trades 0.1 percent up at 1.0026, having touched a high of 1.0033, it’s highest since July 19. FxWirePro's Hourly Swiss Franc Strength Index stood at -81.37 (Slightly Bearish) by 1100 GMT. On the higher side, near-term resistance is around 1.0043 (July 19 High) and any break above will take the pair to next level till 1.0068 (July 13 High). The near-term support is around 0.9954 (September 25 Low) and any close below that level will drag it till 0.9937 (September 23 Low).
Equities Recap
European shares eased, weighed down by downbeat corporate earnings reports, while the greenback surged as Trump and Xi are due to meet on the sidelines of the Group of 20 leaders summit in Argentina at the end of November.
The pan-European STOXX 600 index slumped 0.05 percent at 355.30 points, while the FTSEurofirst 300 index plunged 0.05 percent to 1,397.89 points.
Britain's FTSE 100 trades 0.2 percent down at 7,042.28 points, while mid-cap FTSE 250 surged 0.3 percent to 18,625.08 points.
Germany's DAX declined 0.4 percent at 11,294.44 points; France's CAC 40 trades 0.4 percent lower at 4,967.18 points.
Commodities Recap
Crude oil prices declined, weighed down by concerns that the U.S.-China trade dispute will dent economic growth and signs of rising global supply. International benchmark Brent crude was trading 0.1 percent down at $76.74 per barrel by 1049 GMT, having hit a low of $75.09 on Wednesday, its lowest since August 24. U.S. West Texas Intermediate was trading 0.2 percent down at $66.57 a barrel, after rising as high as $67.92 on Monday, its highest since October 23.
Gold prices slumped as the U.S. dollar firmed on renewed worries of intensification in the U.S.-China trade war and concerns over slowing global economic growth. Spot gold was down 0.7 percent at $1,220.53 an ounce at 1052 GMT, having hit a low of $1219.79 earlier, its lowest since Oct. 18. U.S. gold futures were down 0.1 percent at $1,226.30 an ounce.
Treasuries Recap
The U.S. Treasuries lost ground during late afternoon session ahead of today’s Conference Boarder Consumer Confidence. Not least given recent equity market turbulence, the headline index seems likely to ease from 138.4, the eighteen-year high reached last month, to around 136. The S&P Case-Shiller house price index is also out. The yield on the benchmark 10-year Treasuries jumped 2-1/2 basis points to 3.093 percent, the super-long 30-year bond yields climbed 3 basis points to 3.360 percent and the yield on the short-term 2-year traded 2-1/2 basis points higher at 2.843 percent.
The United Kingdom’s gilts remained mixed during the afternoon session ahead of the Bank of England’s (BoE) monetary policy decision, scheduled to be unveiled on November 1 by 12:00GMT, followed by Governor Mark Carney’s speech, by 12:30GMT for further direction in the debt market. The yield on the benchmark 10-year gilts, rose nearly 1 basis point to 1.408 percent, the super-long 30-year bond yields slipped 1/2 basis point to 1.836 percent and the yield on the short-term 2-year traded nearly flat at 0.727 percent
The German bunds continued to slump during European session after investors were cheered by the improvement in the unemployment change for the month of October, better than market forecast as well. The German 10-year bond yields, which move inversely to its price, rose nearly 1 basis point to 0.389 percent, the yield on 30-year note also climbed nearly 1 basis point to 1.039 percent and the yield on short-term 2-year traded tad 1/2 basis point higher at -0.655 percent.
The Australian government bonds suffered during Asian session as investors expect to see a slight rise in the country’s consumer price inflation (CPI) data for the third quarter of this year, scheduled to be released on October 31 by 00:30GMT. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 1-1/2 basis points to 2.585 percent, the yield on the long-term 30-year bond remained tad higher at 3.079 percent and the yield on short-term 2-year traded nearly flat at 1.976 percent.
