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America’s Roundup: Dollar hits 2021 peak, Wall Street ends mixed, Gold retreats, Oil prices slip as U.S. inventories rise-September 30th,2021

Market Roundup

•Canada Aug IPPI (MoM) -0.3%,0.1%forecast, -0.4% previous

•Brazil Aug Budget Surplus 16.729B,-12.150B forecast, -10.283B previous

•Canada Aug RMPI (MoM) -2.4%                , 2.2% previous

•Canada Aug RMPI (YoY) -2.4%,37.7% previous

•US Aug Pending Home Sales (MoM) 8.1%,1.4% forecast, -1.8% previous

•US Crude Oil Inventories 4.578M,-1.652M forecast, -3.481M previous

Looking Ahead Economic Data (GMT)

•23:50 Japan Aug Retail Sales (YoY)  -1.0%, 2.4%  previous

•23:50 Japan Sep Industrial Production forecast 1m ahead (MoM)  3.4% previous

•23:50 Japan Aug Industrial Production (MoM)  -0.5% forecast, -1.5% previous

•01:00 New Zealand Sep ANZ Business Confidence  -14.2 previous

•01:00 Chinese Sep Composite PMI  48.9 previous

•01:00 Chinese Sep Non-Manufacturing PMI  47.5 previous

•01:00 Chinese Sep Manufacturing PMI  50.1 forecast, 50.1 previous

•01:30 Australia Aug Private Sector Credit (MoM)  0.7% previous

•01:30 Australia Aug Housing Credit  0.6% previous

•01:45 Australia Sep Caixin Manufacturing PMI 49.5, 49.2 previous

• 05:00 Japan Aug Housing Starts (YoY)  9.5% forecast, 9.9% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant event

Currency Summaries

EUR/USD: The euro declined on Wednesday  as the dollar rose on expectations  that the US Federal Reserve may soon begin winding down  its economic support measures. The dollar, an alternate “safe haven”, rallied to a one-year high against rival currencies, even though a deadlock in Washington over the U.S. debt ceiling threatened to plunge the government into a shutdown.The dollar index  which measures the U.S. currency against a basket of six major currencies - rose for the fourth consecutive day, to 94.435, its highest since late September of last year. It was last up 0.7% at 94.404.1.Immediate resistance can be seen at 1.1630 (38.2%fib), an upside break can trigger rise towards 1.1660 (50%fib).On the downside, immediate support is seen at 1.1588(23.6%fib), a break below could take the pair towards 1.1568(Lower BB).

GBP/USD: Sterling fell to its lowest levels since January against the dollar on Wednesday, sustaining much of its losses the previous day after a selloff in equity markets hit risk sentiment and pushed the currency over 1% lower. On Wednesday, sterling extended its Tuesday losses and fell 0.2% more to its lowest since Jan. 11 against the dollar at $1.35045.It traded flat against the euro near a two-month low of 86.40 pence per euro. Bank of England governor Andrew Bailey is scheduled to speak at a forum in Sintra, Portugal later on Wednesday. Immediate resistance can be seen at 1.3471(38.2%fib),an upside break can trigger rise towards 1.3519 (50%fib).On the downside, immediate support is seen at 1.3426 (23.6%fib), a break below could take the pair towards 1.3400(Psychological level).

USD/CAD: The Canadian dollar weakened on Wednesday to its lowest level in nearly a week against its U.S. counterpart as oil prices fell and the greenback posted broad-based gains. The loonie was trading 0.5% lower at 1.2749 to the greenback, or 78.44 U.S. cents, after touching its weakest level since last Thursday at 1.2774 . The price of oil, one of Canada's major exports, was pressured by an unexpected rise in U.S. crude inventories and concerns about a slowing Chinese economy. U.S. crude oil futures settled 0.6% lower at $74.83 a barrel. Immediate resistance can be seen at 1.2777(23.6%fib), an upside break can trigger rise towards 1.2834 (Higher BB).On the downside, immediate support is seen at 1.2723(5 DMA), a break below could take the pair towards 1.2684(38.2%fib).

USD/JPY: The dollar strengthened against yen on Wednesday as increased expectations for a reduction in the U.S. Federal Reserve's asset purchases starting in November and an interest rate hike, possibly in late 2022 boosted dollar. 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 world's largest reserve currency, seen as a safe-haven bet at times of market stress, has strengthened in recent days as investors  focused on fears of a global slowdown, a rise in energy prices and higher U.S. Treasury yields. Strong resistance can be seen at 112.06(23.6%fib), an upside break can trigger rise towards 112.28(Feb 3rd high).On the downside, immediate support is seen at 111.56(38.2%fib), a break below could take the pair towards 111.17(50%fib).

Equities Recap          

European stocks rose on Wednesday after one of the worst market routs this year as AstraZeneca lifted healthcare stocks on a deal to buy a rare disease drugmaker, while chip equipment producer ASM gained on an upbeat earnings forecast.

UK's benchmark FTSE 100 closed up by 1.14 percent, Germany's Dax ended up by 0.77 percent, France’s CAC finished the day up by 0.84 percent.

Wall Street seesawed in choppy trading on Wednesday, regaining some of the ground lost in the previous session’s broad sell-off although initial gains were capped by concern over remarks from U.S. Federal Reserve Chairman Jerome Powell and the ongoing debt ceiling debate.

 Dow Jones ended  up by 0.26 percent, S&P 500 settled up by 0.16 percent, Nasdaq was closed  down by 0.24 percent.

Treasuries Recap

Traders slowed their selling of U.S. Treasuries on Wednesday, leaving yields little changed, as they kept an eye on government budget talks in Washington.

The benchmark 10-year yield was up 1 basis point at 1.5462% while yields on shorter-term debt were lower. After four consecutive sessions in which the 10-year yield rose, the yield fell as low as 1.494% on Wednesday morning before finding support.

Commodities Recap

Gold fell to its lowest in seven weeks on Wednesday as the dollar rose and on expectations the U.S. Federal Reserve could soon begin winding down its economic support measures.

Spot gold was down 0.7% at $1,722.50 per ounce by 1:32 p.m. EDT (1732 GMT), after hitting its lowest since Aug. 10 at $1,720.49.U.S. gold futures settled 0.8% lower at $1,722.9.

Oil prices slipped on Wednesday after U.S. crude inventories rose by more than anticipated, even as OPEC plans to maintain its deliberate approach to adding supply to the market.

Brent crude settled down 45 cents to $78.64 a barrel, after reaching $80 on Tuesday. U.S. oil prices ended down 46 cents, or 0.6%, to $74.83 a barrel.

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