Market Roundup
•Canada IPPI (YoY) (Sep) -0.9%, 0.2% previous
•Canada IPPI (MoM) (Sep) -0.6%, -0.4% forecast, -0.8% previous
•Canada RMPI (YoY) (Sep) -8.8%, -2.5% previous
•Canada RMPI (MoM) (Sep) -3.1%, -1.7% forecast, -3.1% previous
•US Redbook (YoY) 4.6%, 5.6% previous
•US Richmond Manufacturing Index (Oct) -14, -19 forecast, -21 previous
•US Richmond Manufacturing Shipments (Oct) -8, -18 previous
•US Richmond Services Index (Oct) 3, -1 previous
Looking Economic Data (GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro eased on Tuesday after European Central Bank policymakers, including President Christine Lagarde, said Euro zone inflation may fall quicker than previously thought, supporting the case for further rate cuts.The central bank governors of France, Portugal and Finland argued on Tuesday that there may be excessive drag on prices because the economy is so weak while the ECB is still restricting the economy with relatively high rates.The comments will likely reinforce bets for continued quick rate cuts, with markets already anticipating a reduction in borrowing costs at each ECB meeting through next spring . Immediate resistance can be seen at 1.0816(SMA 5 ), 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: Sterling hit a fresh 2-month low against the dollar on Tuesday as widening U.S.-UK rate differentials favoured dollar.Recent soft UK data and central bank rhetoric has shifted BoE policy expectations from a more-hawkish stance relative to the Fed, which has deflated sterling from its late September highs above 1.34 to current levels below 1.30, which have not been seen since mid-August.The dovish BoE shift comes as the Fed broadcasts a more measured rate cut path after its initial surprise 50bp reduction on Sept. 18.Traders are now focused on a slew of BoE member comments and UK flash PMIs later this week and the UK budget to be announced Oct. 30 for clues as to the depth and speed of upcoming rate cuts. Immediate resistance can be seen at 1.3054(38.2%fib), an upside break can trigger rise towards 1.3123(50%fib).On the downside, immediate support is seen at 1.2967(Daily low), a break below could take the pair towards 1.2928 (Lower BB).
USD/CAD: The Canadian dollar strengthened slightly against its U.S. counterpart on Tuesday, as the recent move higher in U.S. bond yields lost some momentum and investors turned attention to an interest rate decision by the Bank of Canada. Investors expect the BoC to cut its benchmark interest rate by half a percentage point on Wednesday, which would be the first reduction greater than 25 basis points in 15 years outside of the pandemic era.The loonie was trading 0.1% higher at 1.3820 to the U.S. dollar, or 72.36 U.S. cents, after trading in a range of 1.3814 to 1.3820. On Monday, the currency touched a near 11-week low at 1.3849. Immediate resistance can be seen at 1.3845 (23.6%fib), an upside break can trigger rise towards 1.3900(Psychological level).On the downside, immediate support is seen at 1.3813(SMA 5), a break below could take the pair towards 1.3772(38.2%fib).
USD/JPY: The dollar steadied against the yen on Tuesday on expectations the Federal Reserve will take a measured approach to interest rate cuts, while a close battle in the upcoming U.S. election kept investors on edge.The dollar's strength, boosted by rising Treasury yields, kept the pressure on the yen, euro and sterling - a theme that has been building over the past few weeks as data showed the U.S. economy remained in a good place, resulting in traders scaling back their bets of large and rapid rate cuts from the Fed. Against the Japanese yen , the dollar strengthened 0.21% to 151.14. Immediate resistance can be seen at 151.61 (23.6 %fib), an upside break can trigger rise towards 152.00(Psychological level). On the downside, immediate support is seen at 150.52(5SMA), a break below could take the pair towards 149.93(38.2%fib)
Equities Recap
European stocks slipped on Tuesday, as investors navigated geopolitical and global interest-rate cut uncertainties, while German company SAP's strong outlook boosted tech stocks and helped cushion some losses.
UK's benchmark FTSE 100 closed down by 0.14 percent, Germany's Dax ended down by 0.20 percent, France’s CAC finished the day down by 0.01percent
U.S. stocks ended little changed on Tuesday, but the Nasdaq eked out a modest gain while investors kept an eye on Treasuries yields and awaited more earnings to assess the health of American companies.
Dow Jones closed down by 0.02% percent, S&P 500 closed down by 0.05 % percent, Nasdaq settled up by 0.18% percent.
Commodities Recap
Gold climbed 1% to hit an all-time peak on Tuesday as factors including safe-haven demand, spurred by U.S. election uncertainties and the Middle East war, combined with expectations of further monetary easing to amplify bullion's surge.
Spot gold rose 0.9% to $2,746.69 per ounce by 1:40 p.m. ET (1740 GMT) after hitting a record $2,748.23 earlier in the session. U.S. gold futures settled 0.8% higher at $2,759.8.
Oil prices settled higher for the second consecutive session on Tuesday, as traders downplayed hopes of a Middle East ceasefire and focused on signs of improving demand from China, which could tighten market balances in the months ahead.
Brent crude futures for December gained $1.75, or 2.4%, to settle at $76.04 per barrel. U.S. West Texas Intermediate crude futures for November delivery rose by $1.53, or 2.2%, to $72.09 a barrel and expired after Tuesday's settlement.
