Market Roundup
•US Sep Building Permits (MoM) -7.7%, 5.6% previous
•US Sep Building Permits 1.589M, 1.680M forecast, 1.721M previous
•US Sep Housing Starts (MoM) -1.6%, 3.9% previous
•US Sep Housing Starts 1.555M, 1.620M forecast, 1.615M previous
•US Redbook (YoY) 15.4%,14.8% previous
•New Zealand GlobalDairyTrade Price Index 2.2% , 0.0% previous
Looking Ahead Economic Data (GMT)
•23:30 Japan Sep Trade Balance -519.2B forecast, -637.2B previous
•23:30 Japan Sep Exports (YoY) 11.0% forecast ,26.2% previous
•01:30 China Sep House Prices (YoY) 4.2% previous
•01:30 China PBoC Loan Prime Rate 3.85% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened on Tuesday as dollar dipped after data showed that U.S. homebuilding unexpectedly fell in September and permits dropped to a one-year low amid acute shortages of raw materials and labor, supporting expectations that economic growth slowed sharply in the third quarter. The dollar index against a basket of other currencies was last down 0.22% on the day at 93.73, after earlier dropping to 93.50, the lowest since Sept. 28.The euro gained 0.29% to $1.1644.Immediate resistance can be seen at 1.1691 (50%fib), an upside break can trigger rise towards 1.1740(61.8%fib).On the downside, immediate support is seen at 1.1630 (38.2%fib), a break below could take the pair towards 1.1572(23.6%fib).
GBP/USD: Sterling hit a four-week high against the dollar on Tuesday as expectations mount the Bank of England (BoE) will hike interest rates, while the greenback dipped as the rapid rise in U.S. Treasury yields in recent days stabilised.BoE Governor Andrew Bailey on Sunday sent perhaps the clearest signal yet of a pending hike, saying the BoE will have to act to deal with rising energy costs in Britain which threaten a surge in consumer prices. The pound on Tuesday rose 0.6% to $1.3833, a level last seen on Sept. 17. Immediate resistance can be seen at 1.3803(23.6%fib),an upside break can trigger rise towards 1.3838(Higher BB).On the downside, immediate support is seen at 1.3730(38.2%fib), a break below could take the pair towards 1.3665(23.6%fib).
USD/CAD: The Canadian dollar rose to its highest level in more than three months against its broadly weaker U.S. counterpart on Tuesday, before giving up some gains as investors took profits ahead of a key Canadian inflation report on Wednesday. The price of oil, one of Canada's major exports, settled 0.6% higher at $82.96 a barrel as an energy supply crunch continued across the globe. The loonie was trading 0.1% higher at 1.2355 to the greenback, after touching its strongest intraday level since July 6 at 1.2312. Immediate resistance can be seen at 1.2418(38.2%fib), an upside break can trigger rise towards 1.2469(50%fib).On the downside, immediate support is seen at 1.2350 (23.6%fib), a break below could take the pair towards 1.2280 (Lower BB).
USD/JPY: The dollar strengthened against yen on Tuesday as greenback strenthed against yen on expectations of sooner-than-previously expected US interest rate hikes. The greenback reached a one-year high against a basket of other currencies last week as Treasury yields surged and as investors bet the Federal Reserve may need to increase rates to address stubbornly high inflation. The dollar was last trading higher 0.14% against yen at 114.16. Strong resistance can be seen at 114.55(23.6%fib), an upside break can trigger rise towards 115.00(Psychological level).On the downside, immediate support is seen at 113.95(38.2%fib), a break below could take the pair towards 113.50(50%fib).
Equities Recap
Some positive earnings and defensive buying kept Europe’s main stock index in the black on Tuesday, helping offset losses in Sweden’s Ericsson and French consumer goods giant Danone after downbeat results.
UK's benchmark FTSE 100 closed up by 0.19 percent, Germany's Dax ended up by 0.28 percent, France’s CAC finished the day down by 0.05 percent.
U.S. stock indexes closed higher on Tuesday with the biggest boosts from the technology and healthcare sectors as investors appeared to bet on solid quarterly reports even as some worried that it was too early to celebrate.
Dow Jones closed up by 0.56% percent, S&P 500 closed up by 0.74 % percent, Nasdaq settled up by 0.71 %percent.
Commodities Recap
Gold prices pared gains on Tuesday, after rising more than 1% earlier, as their safe-haven appeal took a knock from rising U.S. Treasury yields and upbeat earnings from American companies.
Spot gold was up 0.3% at $1,769.94 per ounce by 1:31 p.m. ET (1731 GMT). It rose as much as 1.2% earlier in the session on a weaker dollar that makes precious metals cheaper for holders of other currencies.
Oil futures rose on Tuesday and were near multi-year highs as an energy supply crunch continued across the globe, while falling temperatures in China revived concerns over whether the world's biggest energy consumer can meet domestic heating needs.
The Brent crude benchmark rose 75 cents to settle at $85.08 a barrel. U.S. West Texas Intermediate (WTI) futures rose 52 cents to settle at $82.96 a barrel.
