Market Roundup
- German SPD leader gives Merkel an ultimatum after state vote losses
- Britain's Hammond to turn up heat on Brexit rebels in budget speech
- China's industrial profits growth slows for fifth month as orders wane
- Guarding stability, China likely to slow yuan's slide to 7 per dlr-sources
- BOJ eyes tweaks to bond-buying programme, but won't rush changes-sources
- Australian prime minister's approval rating turns negative: poll
- Far-right Bolsonaro rides anti-corruption rage to Brazil presidency
- Japan Sep Retail Sales YY, 2.1%, 1.6% f’cast, 0.50%, 2.7% prev
Economic Data Ahead
- (0530 ET/0930 GMT) Great Britain Sep BOE Consumer Credit, 1.200 bln f’cast, 1.118 bln prev
- (0530 ET/0930 GMT) Great Britain Sep Mortgage Lending, 3.000 bln f’cast, 2.904 bln prev
- (0530 ET/0930 GMT) Great Britain Sep Mortgage Approvals, 65.000k f’cast, 66.440k prev
Key Events Ahead
- (0500 ET/0900 GMT) Norway Central Bank Publishes annual report on financial stability in Oslo
- (0900 ET/1300 GMT) Fed New York Senior Vice President Ray Testa speaks at LBMA/LPPM Precious Metals Conference in Boston
- (0945 ET/1345 GMT) Fed Chicago President Charles Evans makes speaks at the Sixth Annual Summit on Regional Competitiveness in Chicago
- N/A British Finance Minister Philip Hammond will deliver his autumn budget statement in London
FX Beat
DXY: The dollar index rose, hovering closer to a 10-week peak, boosted by trade tensions between the United States and China, and a steady pace of rate increases by the Federal Reserve. The greenback against a basket of currencies trades 0.1 percent up at 96.44, having touched a high of 96.86 on Friday, its highest since August 15. FxWirePro's Hourly Dollar Strength Index stood at 20.09 (Neutral) by 0500 GMT.
EUR/USD: The euro declined as German Chancellor Angela Merkel's junior coalition allies gave her conservatives until next year to deliver more policy results. The European currency traded 0.1 percent down at 1.1393, having touched a low of 1.1335 on Friday, its lowest since August 1.6 FxWirePro's Hourly Euro Strength Index stood at -11.90 (Neutral) by 0500 GMT. Investors’ attention will remain on European Commission Economic Growth Forecast release, ahead of the U.S. personal consumption expenditure, and Fed Evans speech. Immediate resistance is located at 1.1432 (October 25 High), a break above targets 1.1493 (October 23 High). On the downside, support is seen at 1.1335 (October 26 Low), a break below could drag it till 1.1301 (August 15 Low),.
USD/JPY: The dollar rebounded from a 6-week low touched in the previous session, after data showed the U.S. economy slowed less than expected in the third quarter. The major was trading 0.1 percent up at 111.97, having hit a low of 111.37 on Friday, its lowest since September 13. FxWirePro's Hourly Yen Strength Index stood at 111.47 (Highly Bullish) by 0400 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. personal consumption expenditure, and Fed Evans speech. Immediate resistance is located at 112.58 (September 20 High), a break above targets 112.98 (September 25 High). On the downside, support is seen at 111.62 (September 15 Low), a break below could take it lower 111.35 (September 5 Low).
GBP/USD: Sterling rallied, extending previous session rebound, ahead of the latest Annual Budget from the Exchequer Chancellor Phillip Hammond, and the chancellor is expected to unveil key details from the UK's budgetary outlook. The major traded 0.1 percent up at 1.2834, having hit a low of 1.2777 on Friday; it’s lowest since August 20. FxWirePro's Hourly Sterling Strength Index stood at -108.94 (Highly Bearish) 0500 GMT. Investors attention will remain on UK consumer credit, Mortgage Approvals and CBI Distributive Trades Survey, ahead of U.S. fundamental drivers. Immediate resistance is located at 1.2876 (September 4 High), a break above could take it near 1.2933 (September 3 High). On the downside, support is seen at 1.2777 (October 6 Low), a break below targets 1.2729 (August 20 Low). Against the euro, the pound was trading 0.1 percent up at 88.78 pence, having hit a low of 88.61 on Friday, it’s lowest since October 2.
AUD/USD: The Australian dollar rose to a 1-week peak after data released by the Housing Industry Association showed New Home Sales bounced back to 1.1 percent in September from -2.9 percent in August. The Aussie trades 0.2 percent up at 0.7099, having hit a high of 0.7107 earlier; it’s highest since October 22. FxWirePro's Hourly Aussie Strength Index stood at 70.96 (Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7065 (October 4 Low), a break below targets 0.7021 (October 4 Low). On the upside, resistance is located at 0.7125 (October 22 High), a break above could take it near 7159 (September 17 High).
NZD/USD: The New Zealand dollar surged, extending previous session gains, as risk sentiment slightly improved. The Kiwi trades 0.3 percent up at 0.6537, having touched a low of 0.6465 on Friday, its lowest level since October 11. FxWirePro's Hourly Kiwi Strength Index was at -129.67 (Highly Bearish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6628 (October 1 High), a break above could take it near 0.6696 (September 26 High). On the downside, support is seen at 0.6502 (October 25 Low), a break below could drag it below 6465 (October 26 Low).
Equities Recap
Asian shares nudged higher after a turbulent week for global equities, however, rising geopolitical concerns limited gains.
MSCI's broadest index of Asia-Pacific shares outside Japan surged 0.3 percent.
Tokyo's Nikkei declined 0.2 percent to 21,149.80 points, Australia's S&P/ASX 200 index rallied 1.1 percent to 5,728.20 points and South Korea's KOSPI slumped 0.9 percent to 2,006.97 points.
Shanghai composite index fell 2.5 percent to 2,535.68 points, while CSI300 index traded 3.3 percent down at 3,068.82 points.
Hong Kong’s Hang Seng traded 0.2 percent lower at 24,671.35 points. Taiwan shares added 0.3 percent to 9,516.32 points.
Commodities Recap
Crude oil prices declined as sentiment remained cautious after a tumble in financial markets last week triggered concerns that global growth may be slowing. International benchmark Brent crude was trading 0.1 percent down at $77.65 per barrel by 0450 GMT, having hit a low of $75.09 on Wednesday, its lowest since August 24. U.S. West Texas Intermediate was trading 0.1 percent down at $67.64 a barrel, after rising as high as $67.92 earlier, its highest since October 23.
Gold prices declined, hovering away from a more than 3-month high hit in the previous session, as the dollar firmed and Asian stocks edged up from last week's setbacks. Spot gold was down 0.1 percent at $1,233.21 an ounce at 0503 GMT, having touched its highest since July 17 at $1,243.32 on Friday. U.S. gold futures were down 0.1 percent at $1,234.70 an ounce.
Treasuries Recap
The Japanese government 10-year bond yield plunged on the first trading day of the week Monday following slower rate of growth in the country’s retail sales for the month of September, albeit meeting market expectations. The yield on the benchmark 10-year JGB note, which moves inversely to its price, slumped nearly 6 basis points to 0.111 percent, the yield on the long-term 30-year note plunged 12 basis points to 0.864 percent and the yield on short-term 2-year traded 1-1/2 basis points lower at -0.119 percent.
The Australian government bonds jumped across the curve during Asian session Monday amid a silent trading session that witnessed data of little economic significance ahead of the country’s consumer price inflation (CPI) data for the third quarter of this year, scheduled to be released on October 31 by 00:30GMT. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 4 basis points to 2.572 percent, the yield on the long-term 30-year bond slumped 3 basis points to 3.079 percent and the yield on short-term 2-year traded nearly 2 basis points lower at 1.982 percent.
