Market Roundup
- Thousands protest in Barcelona against Catalan independence
- China Sep Caixin Services PMI, 50.6 vs 52.7, at 21-month low
- Weakened May to give bullish Brexit prognosis but say ball is in EU's court
- UK's May signals foreign minister Johnson could be sacked
- UK consumer spending spikes in Sept, but trend gloomy – Visa
- Merkel settles migrant row with allies to pursue coalition
- Senator Corker says Trump risks putting U.S. on path to World War Three
- U.S., Turkey mutually suspend visa services for security reasons
- Trump seeks border wall, crackdown on unaccompanied minors for 'Dreamer' deal
- New Zealand First leader says foreign ownership to be part of coalition wrangling
- Kim Jong Un praises nuclear programme, promotes sister to centre of power
- Speculators cut bearish bets on dollar from 5-year high, remain short - CFTC
- Japan's Koike says her party offers centrist choice to voters
Economic Data Ahead
- (0430 ET/0830 GMT) EU Oct Sentix Index, 28.5 eyed, last 28.2
Key Events Ahead
- N/A ECB's Draghi and Coeure participating in Luxembourg
- (0900 ET/1300 GMT) Eurogroup meeting in Luxembourg
- (1200 ET/1600 GMT) ECB's Lautenschlager speaks in Stuttgart
FX Beat
DXY: The dollar eased versus the Japanese yen as a renewed focus on geopolitical risks weighed heavily on market sentiment. The greenback against a basket of currencies traded down at 93.79, having touched a high of 94.27 on Friday, its highest since July. 26. FxWirePro's Hourly Dollar Strength Index stood at 42.32 (Neutral) by 0600 GMT.
EUR/USD: The euro consolidated within narrow ranges, as investors remained cautious, digesting weak Chinese services PMI and the latest North Korea headlines. The European currency traded flat at 1.1780, having touched a low of 1.1669 on Friday, its lowest since Aug. 17. FxWirePro's Hourly Euro Strength Index stood at -22.34 (Neutral) by 0600 GMT. Investors’ attention will remain on the Eurozone Sentix Investor Confidence data, ahead of U.S. Employment Trends Index figures. Immediate resistance is located at 1.1766 (10-DMA), a break above targets 1.1800. On the downside, support is seen at 1.1669 (Previous Session Low), a break below could drag it near 1.1650.
USD/JPY: The dollar declined against the safe-haven Japanese yen on renewed geopolitical risks amid concerns that North Korea may be preparing another missile test. The major was trading down at 112.59, having hit a high of 113.43 last week, its highest since July. FxWirePro's Hourly Yen Strength Index stood at 84.95 (Slightly Bullish) by 0600 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. Employment Trends Index figures for further momentum. Immediate resistance is located at 113.00, a break above targets 113.40. On the downside, support is seen at 112.33 (Session Low), a break below could take it near 112.21.
GBP/USD: Sterling steadied after falling below the 1.3100 handle in the previous session, as markets seek to take profits on their GBP shorts ahead of the UK PM May’s speech. The major traded 0.4 percent up at 1.3114, having hit a low of 1.3027 on Friday, its lowest since Sept. 6. FxWirePro's Hourly Sterling Strength Index stood at -99.29 (Slightly Bearish) by 0600 GMT. Investors’ focus will remain on U.S. fundamental drivers, amid a lack of economic data from the UK docket. Immediate resistance is located at 1.3200, a break above could take it near 1.3291. On the downside, support is seen at 1.3027 (Previous Session Low), a break below targets 1.3000. Against the euro, the pound was trading 0.4 rose low at 89.36 pence, having hit a low of 89.92 pence the prior session, its lowest since Sept. 14.
AUD/USD: The Australian dollar slumped, extending losses for the third consecutive session, after China Caixin/Markit September services PMI came in at a 21-month low of 50.6. The Aussie trades 0.2 percent down 0.7759, having hit a low of 0.7733 in the previous session, it’s lowest since Jul. 14. FxWirePro's Hourly Aussie Strength Index stood at -39.77 (Neutral) by 0600 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7725 (Jul. 14 Low), a break below targets 0.7700. On the upside, resistance is located at 0.7800, a break above could take it near 0.7843 (10-DMA).
NZD/USD: The New Zealand dollar hit a four-month low after a final vote count in the country's general election released over the weekend failed to identify a clear winner. The Kiwi trades 0.2 percent down at 0.7072, having touched a low of 0.7057 earlier in the session, its lowest level since Jun. 2. FxWirePro's Hourly Kiwi Strength Index was at -89.52 (Slightly Bearish) by 0600 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7144 (5-DMA), a break above could take it near 0.7277 (Sept. 26 High). On the downside, support is seen at 0.7057 (Session Low), a break below could drag it till 0.7000.
Equities Recap
Asian shares gained, boosted by a rise in Chinese shares, while the dollar eased versus the yen on news that North Korea is preparing to test a long-range missile.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent, having rebounded by 1.7 percent last week.
Tokyo's Nikkei rose 0.3 percent to 20,690.71 points, Australia's S&P/ASX 200 index gained 0.5 percent to 5,739.40 points.
Shanghai composite index gained 0.8 percent to 3,374.38 points, while CSI300 index was trading 1.2 percent up at 3,882.21 points.
Hong Kong’s Hang Seng was trading 0.1 percent lower at 28,338.02 points. Taiwan shares added 0.1 percent to 10,532.81 points.
Commodities Recap
Crude oil prices edged up after declining nearly 2 percent on Friday as a number of rigs drilling for new oil in the United States dropped and on expectations that Saudi Arabia would continue to restrain its output in order to support prices. International benchmark Brent crude was trading 0.4 percent down at $55.75 per barrel by 0633 GMT, having hit a low of $55.11 on Friday, its weakest since Sept. 19. U.S. West Texas Intermediate was trading 0.3 percent down at $49.41 a barrel, after falling as low as $49.08 in the previous session, its lowest since Sept. 13.
Gold prices rallied to their highest in more than a week as renewed concerns over North Korea's nuclear plans boosted safe-haven demand. Spot gold was up 0.4 percent to $1,281.07 an ounce by 0639 GMT, after touching a high of $1285.34 its highest since Sept. 29. U.S. gold futures for December delivery gained 0.8 percent to $1,284.80 per ounce.
Treasuries Recap
The Australian government bond futures were mixed, with the three-year bond contract flat at 97.850. The 10-year contract slipped 1 basis points to 97.1450.
The New Zealand government bonds gained, sending yields about 2 basis points higher at the long-end of the curve.
