Market Roundup
•US Goods Trade Balance (Sep) -108.23B, -95.90B forecast, -94.22B previous
• US Retail Inventories Ex Auto (Sep) 0.1%, 0.5% forecast
• Canada Wholesale Inventories (MoM) (Sep) -0.1%, 0.2%, 0.1% previous
• US Wholesale Sales (MoM) (Sep) 0.9%, -0.6% forecast
• US Redbook (YoY) 5.6%, 4.6% previous
• US House Price Index (YoY) (Aug) 4.2%, 4.7% previous
• US House Price Index (MoM) (Aug) 0.3%, 0.1%, 0.2% previous
• US House Price Index (Aug) 427.0, 425.8 previous
• US S&P/CS HPI Composite - 20 s.a. (MoM) (Aug) 0.4%, 0.3% previous
• US S&P/CS HPI Composite - 20 n.s.a. (MoM) (Aug) -0.3%, 0.0% previous
• US S&P/CS HPI Composite - 20 n.s.a. (YoY) (Aug) 5.2%, 4.9%, 5.9% previous
• US CB Consumer Confidence (Oct) 108.7, 99.5 forecast, 99.2 previous
• US JOLTS Job Openings (Sep)7.443M, 7.980M previous
• US Atlanta Fed GDPNow 2.8%, 3.3% previous
• US Dallas Fed Services Revenues (Oct) 9.2, 10.1 previous
• US Texas Services Sector Outlook (Oct) 2.0, -2.6 previous
• US 52-Week Bill Auction 4.100%, 3.780% previous
• US 7-Year Note Auction: 4.215%, 3.668% previous
Looking Ahead Economic Data (GMT)
•00:30 Australia CPI (QoQ) (Q3): 0.3% forecast, 1.0% previous
•00:30 Australia CPI (YoY) (Q3): 2.3% forecast, 3.8% previous
•00:30 Australia CPI Index Number (Q3): 138.80 previous
•00:30 Australia Trimmed Mean CPI (YoY) (Q3): 3.5% forecast, 3.9% previous
•00:30 Australia Trimmed Mean CPI (QoQ) (Q3): 0.7% forecast, 0.8% previous
•00:30 Australia Weighted Mean CPI (YoY) (Sep): 2.30% forecast, 2.70% previous
•00:30 Australia Weighted Mean CPI (YoY) (Q3): 3.6% forecast, 4.1% previous
•00:30 Australia Weighted Mean CPI (QoQ) (Q3): 0.8% forecast, 0.8% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro steadied on Tuesday after data suggested U.S. jobs growth may be slowing. September JOLTS fell to 7.443m versus August's 7.861m, which was revised down from 8.04m. September's print was below the lowest estimates of poll and the sharp downward revision only briefly weakened U.S. yields and the dollar.The prospect that inflation could be rising again may have helped limit dollar weakness after JOLTS data. U.S. September PCE is due Thursday and October payrolls will be released Friday. Above-estimate PCE could fuel concerns that inflation is rising again and may send EUR/USD downward. Investors focus is now turning to a host of economic data including the euro zone bloc's third-quarter GDP and October inflation, and U.S. GDP and non-farm payrolls print, all due this week.Strong resistance can be seen at 1.0816(SMA5 ), an upside break can trigger rise towards 1.0847(38.2%fib).On the downside, immediate support is seen at 1.0785(23.6%fib), a break below could take the pair towards 1.0700(Psychological level).
GBP/USD: The pound held steady on Tuesday as traders awaited the details of the UK budget to be released on Wednesday. Ahead of the release. Reeves will deliver the new Labour government's first budget in 14 years on Wednesday, two years after then-Prime Minister Liz Truss' tax-cutting plans sparked a crisis in the bond market.She plans around 40 billion pounds ($52 billion) worth of fiscal measures, according to government sources, mostly from tax increases plus cuts to some public services, to meet her pledge to cover day-to-day spending without borrowing. Markets are priced for at least one more before the end of this year, but the BoE is expected to be one of the slower major central banks when it comes to lowering borrowing costs, meaning the pound has enjoyed a degree of support this year. Immediate resistance can be seen at 1.2978(5 SMA), an upside break can trigger rise towards 1.3028(50%fib).On the downside, immediate support is seen at 1.2922(23.6%fib), a break below could take the pair towards 1.22900 (Psychological level).
USD/CAD: The Canadian dollar weakened to a 12-week low against its U.S. counterpart on Tuesday as oil prices fell and investors weighed rising domestic political uncertainty. The leader of Canadian opposition party Bloc Quebecois said he was working to topple Prime Minister Justin Trudeau's minority Liberal government but to do so he needs the help of other legislators who have shown little enthusiasm for the idea.The price of oil, one of Canada's major exports, added to the previous day's sharp decline on a report that Israeli Prime Minister Benjamin Netanyahu will hold a meeting for a diplomatic solution to the war in Lebanon. U.S. crude oil futures settled 0.25% lower at $67.21 a barrel. The loonie was trading 0.2% lower at 1.3915 per U.S. dollar, after touching its weakest intraday level since Aug. 5 at 1.3929. Immediate resistance can be seen at 1.3717 (38.2%fib), an upside break can trigger rise towards 1.3744 (Higher BB).On the downside, immediate support is seen at 1.3676(50%fib), a break below could take the pair towards 1.3646 (61.8%fib).
USD/JPY: The dollar hit three-month highs against the yen on Tuesday as the loss of a parliamentary majority for Japan's ruling coalition in weekend elections muddied the political and monetary picture. The election results also suggest that a new government may need to seek support from smaller opposition parties and boost spending to win public approval. Looking ahead, the BOJ will announce its monetary policy decision on Thursday, with expectations that the central bank will keep rates unchanged. The yen has lost nearly 10% in value since September's 14-month high against the dollar. The dollar was last up 0.12% on the day at 153.47 yen. Immediate resistance can be seen at 153.87 (23.6 %fib), an upside break can trigger rise towards 155.00(Psychological level). On the downside, immediate support is seen at 152.69(Daily low), a break below could take the pair towards 150.88(38.2%fib)
Equities Recap
Europe's main stock index dropped on Tuesday, bruised by a handful of bleak quarterly results from industry majors such as energy giant BP, drugmaker Novartis and lender Santander, while caution also prevailed ahead of some crucial economic data.
UK's benchmark FTSE 100 closed down by 0.80 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the day down by 0.61 percent.
The Nasdaq scored a record closing high and the S&P 500 rose on Tuesday, while the Dow fell as investors digested a host of corporate earnings and awaited Google-parent Alphabet's results that came after the market close.
Dow Jones closed down by 0.36% percent, S&P 500 closed up by 0.16% percent, Nasdaq settled up by 0.81% percent.
Commodities Recap
Gold prices hit a record high on Tuesday, as uncertainties surrounding the U.S. presidential election and the Middle East conflict, along with expectations of an interest rate cut by the Federal Reserve.
Spot gold was up 1% at $2,769.25 per ounce as of 10:17 a.m ET (1417 GMT), after hitting a record high of $2,772.42 earlier in the session.U.S. gold futures settled 0.9% higher at $2,781.1.
Oil prices closed slightly lower on Tuesday, adding to a more than 6% drop in the previous session, on a report that Israeli Prime Minister Benjamin Netanyahu will hold a meeting for a diplomatic solution to the war in Lebanon.
Brent crude futures settled down 30 cents, or 0.4%, at $71.12 a barrel, while U.S. West Texas Intermediate crude shed 17 cents, or 0.3%, to $67.21 a barrel.
