Market Roundup
•Spanish Unemployment Change 17.7K, 62.1K previous
•EU Aug PPI (MoM) 5.0%, 4.9% forecast ,4.0% previous
•EU Aug PPI (YoY) 43.3%, 43.1% forecast , 37.9 previous
Looking Ahead - Economic Data (GMT)
•13:00 US Redbook (YoY) 11.0% previous
•14:00 US Aug Factory orders ex transportation (MoM) -1.1% previous
•14:00 US Aug Durables Excluding Defense (MoM) -0.9% previous
•14:00 US Aug JOLTs Job Openings 10.775M forecast , 11.239M previous
•14:00 US Aug Durables Excluding Transport (MoM) 0.2% previous
•15:00 New Zealand GlobalDairyTrade Price Index 2.0%
Looking Ahead - Events, Other Releases (GMT)
•17:00 US FOMC Member Daly Speaks
•13:00 US FOMC Member Williams Speaks
•13:15 US FOMC Member Mester Speaks
•15:00 EU ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro strengthened on Tuesday as dollar dipped a slowdown in U.S. manufacturing activity raised hopes that the Fed might be less aggressive going forward. U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in September as new orders contracted amid aggressive interest rate increases from the Federal Reserve to cool demand and tame inflation.The Institute for Supply Management (ISM) survey on Monday also showed a measure of manufacturing employment contracted last month for the fourth time this year. A gauge of inflation at the factory gate decelerated for a sixth straight month. The euro was last up 0.67% at $0.9891, a moderate recovery from its 20-year low of $0.9528 on Sept. 26.Immediate resistance can be seen at 0.9913(38.2%fib), an upside break can trigger rise towards 1.1036(50%fib).On the downside, immediate support is seen at 0.9808 (5DMA), a break below could take the pair towards 0.9771(23.6%fib).
GBP/USD: The pound rose for the sixth consecutive session on Tuesday as investors welcomed the British government’s U-turn on some tax cuts and the U.S. dollar slipped . The pound had already rebounded from its record low after the Bank of England (BoE) intervened in the bond market last week following a dramatic plunge in long-dated gilts. It has now regained all the ground it lost in the wake of Kwarteng’s so-called mini budget.Sterling was last up 0.1% to $1.1331, after touching a session high of $1.1428. The euro was up 0.28% against the pound at 87.03 pence.Sterling dropped to a record low of $1.0327 on Sep. 26 after new Finance Minister Kwasi Kwarteng unveiled plans to slash taxes, particularly for the rich, and ramp up borrowing. Immediate resistance can be seen at 1.1453(50%fib), an upside break can trigger rise towards 1.1665 (61.8%fib).On the downside, immediate support is seen at 1.1230 (38.2%fib), a break below could take the pair towards 1.1177(5DMA).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as investors expected the Federal Reserve to tone down its pace of monetary tightening after slowdown in U.S. manufacturing activity. Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods. The Institute for Supply Management said its manufacturing PMI dropped to 50.9 this month, missing estimates but still above 50, indicating growth.Focus now shifts to U.S. non-farm payrolls data due on Friday that could offer more clarity on Fed policy tightening. Immediate resistance can be seen at 0.9964 (23.6% fib), an upside break can trigger rise towards 0.9972(Higher BB).On the downside, immediate support is seen at 0.9855 (38.2% fib), a break below could take the pair towards 0.9933 (5DMA).
USD/JPY: The dollar was little changed against the Japanese yen on Tuesday after briefly popping above that level on Monday for the first time since Japanese authorities intervened to support their currency on Sept. 22.Japanese finance minister Shunichi Suzuki repeated on Monday that authorities stand ready for decisive" steps in the foreign exchange market if sharp and one-sided yen moves persisted. Investors are now directing their focus towards U.S. non-farm payrolls data due later this week and key inflationdata next week .Strong resistance can be seen at 144.91 (23.6%fib), an upside break can trigger rise towards 145.40(Higher BB). On the downside, immediate support is seen at 144.19 (9DMA), a break below could take the pair towards 143.55(38.2%fib).
Equities Recap
European shares rose sharply on Tuesday in a broad-based rally, led by chipmakers, travel and leisure companies, and some strong corporate updates, with investors eyeing producer price data due later in the day., which could indicate the trajectory of rate hikes by the nation's central bank. .
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 2.03 percent, Germany's Dax was up by 2.85 percent, France’s CAC finished was up by 3.37percent.
Commodities Recap
Gold extended gains on Tuesday to firm above the key $1,700 per ounce level on a retreat in the dollar and U.S. Treasury yields as investors expected the Federal Reserve to tone down its pace of monetary tightening.
Spot gold was up 0.3% at $1,703.79 per ounce as of 1149 GMT, having touched its highest since Sept. 13 at $1,710.49 earlier in the session.
Oil prices rose on Tuesday on expectations that OPEC+ may agree to a large cut in crude output in its meeting this week, while strong demand and upcoming sanctions on Russian oil also lent some support to prices.
Brent crude was up 79 cents, or 0.9%, to $89.65 per barrel by 1054 GMT after gaining more than 4% the previous day.
U.S. crude futures rose 60 cents, or 0.7%, to $84.23 a barrel, having gained more than 5% the previous day.
