Market Roundup
•UK Current Account (Q2) -8.6B, -15.6B forecast, -12.8B previous
•UK Business Investment (QoQ) (Q2) 4.5%, 2.4% previous
•UK GDP (YoY) (Q2) 23.6%,22.2% forecast, 22.2% previous
•UK GDP (QoQ) (Q2) 5.5%,4.8% forecast, 4.8% previous
•UK Sep Nationwide HPI (MoM) 0.1%,0.6% forecast, 2.1% previous
•French Aug Consumer Spending (MoM) 1.0%,0.1%, -2.2% previous
•French Aug PPI (MoM) 1.0%, 1.3% previous
•French CPI (MoM) -0.2%,0.6% previous
•French HICP (MoM) -0.2%,0.7% previous
•German Sep Unemployment Rate 5.5%,5.4% forecast, 5.5% previous
•German Sep Unemployment Change -30K,-33K forecast, -53K previous
•Italian Aug Monthly Unemployment Rate 9.3%,9.2% forecast, 9.3% previous
•EU Aug Unemployment Rate 7.5%,7.5% forecast, 7.6% previous
•Italian Sep CPI (MoM) -0.1%,-0.3% forecast, 0.4% previous
•German Sep HICP (MoM) 0.2% forecast, 0.1% previous
•German Sep CPI (MoM) 0.1% forecast, 0.9% previous
• US Corporate Profits (QoQ) (Q2) 10.5%,9.7% previous
•US Real Consumer Spending (Q2) 12.0%, 11.9% previous
•US Core PCE Prices (Q2) 6.10%,6.10% forecast, 6.10% previous
•US GDP (QoQ) (Q2) 6.7%, 6.6% forecast, 6.6% previous
•US GDP Price Index (QoQ) (Q2) 6.2%,6.1% forecast, 6.2% previous
•US Initial Jobless Claims 362K, 335K forecast, 351K previous
•US Jobless Claims 4-Week Avg 340.00K, 335.75K previous
•US Continuing Jobless Claims 2,802K,2,800K forecast, 2,845K previous
•Sep Chicago PMI 64.7,65.0 forecast, 66.8 previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 US FOMC Member Bostic Speaks
•15:30 US FOMC Member Harker Speaks
•18:00 Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro edged lower on Thursday as U.S. dollar strengthened amid expectations for a tapering of Federal Reserve stimulus from November and a possible interest rate hike in late 2022. The euro fell to $1.1657, its lowest since November 2020 and the dollar index rose to an 11-month high of 93.891. The greenback fared well despite an impasse in Washington over the U.S. debt ceiling that threatened to plunge the government into a shutdown. The euro was among the currencies to lose ground, falling below the $1.16 level , the lowest since late July 2020. It last traded down 0.8% at $1.1569.Immediate resistance can be seen at 1.1608 (38.2%fib), an upside break can trigger rise towards 1.1638(50%fib).On the downside, immediate support is seen at 1.1565(23.6%fib), a break below could take the pair towards 1.1500(Psychological level).
GBP/USD: Sterling steadied near a nine month low on Thursday amid concerns about British economic growth with inflation expected to jump as the country grapples with a fuel crisis.Sterling was one of the strongest G10 currencies this year as investors bet the British economy would re-emerge faster from the pandemic thanks to Britain’s speedy vaccination programme. But that narrative has crumbled with sterling erasing all of its strong 2021 gains, down around eight cents since its June peak. The pound was flat versus the dollar at $1.3431 by 0845 GMT, not far from nine-month lows touched the previous day. Immediate resistance can be seen at 1.3525(50%fib),an upside break can trigger rise towards 1.3575 (61.8%fib).On the downside, immediate support is seen at 1.3571(38.2%fib), a break below could take the pair towards 1.3407(23.6%fib).
USD/CHF: The dollar dipped against Swiss franc on Thursday in choppy trading, pressured a little bit by a rise in U.S. weekly jobless claims, and as investors consolidated gains after a steep rise the last few sessions.The greenback overall has been supported by the spike in U.S. Treasury yields amid expectations the Federal Reserve will taper its monetary stimulus beginning in November even as global growth slows. Thursday's economic data, though, dented some of the dollar's strength. Immediate resistance can be seen at 0.9350(Higher BB), an upside break can trigger rise towards 0.9369 (23.6% fib).On the downside, immediate support is seen at 0.9312(38.2% fib), a break below could take the pair towards 0.9292(5DMA).
USD/JPY: The dollar retreated from recent high against yen on Thursday as on dismal U.S. weekly jobs numbers weighed on greenback. The number of Americans filing new claims for unemployment benefits increased last week, data showed on Thursday, which could raise concerns that the labour market is softening. Another report confirmed that U.S. economic growth accelerated in the second quarter, at a 6.7% clip, thanks to pandemic relief money from the government, which boosted consumer spending Strong resistance can be seen at 111.95(23.6%fib), an upside break can trigger rise towards 120.00(Psychological level).On the downside, immediate support is seen at 111.46(38.2%fib), a break below could take the pair towards 111.35(5DMA).
Equities Recap
European stocks continued their rebound on Thursday from a bruising sell-off earlier this week, but were set for monthly declines on worries about a slowing global economy and higher inflation.
At (GMT 15:10 ),UK's benchmark FTSE 100 was last trading up at 0.48 percent, Germany's Dax was down by 0.71% percent, France’s CAC was last down by 0.78percent.
Commodities Recap
Gold rose 1% on Thursday after the dollar fell on dismal U.S. weekly jobs numbers, but recent declines driven by expectations the U.S. Federal Reserve will soon start tapering its economic support kept bullion on track for a quarterly drop.
Spot gold rose 1% to $1,743.50 per ounce by 10:01 am EDT (1401 GMT). U.S. gold futures climbed 1.1% to $1,741.50.
Oil prices fell after U.S. trading opened on Thursday as higher U.S. crude oil inventories and a strong dollar outweighed bullishness from supply deficit forecasts.
U.S. oil slipped by $1.54 to $73.29 a barrel. Brent crude for November delivery was down 92 cents at $77.72 by 1350 GMT on its expiry day while December-loading crude eased by $1.42 to $76.67.
