Market Roundup
•French Aug Industrial Production (MoM) 1.0% ,0.3% forecast, 0.3% previous
•Spanish Sep Services PMI 56.9, 58.0 forecast, 60.1 previous
•Italian Sep Services PMI 55.5,56.5 forecast, 58.0 previous
•French Sep Services PMI 56.2,56.0 forecast, 56.0 previous
•German Sep Composite PMI 55.5 ,55.3 forecast, 55.3 previous
• German Sep Services PMI 56.2 ,56.0 forecast, 56.0 previous
•UK Sep Services PMI 55.4 ,54.6 forecast, 54.6 previous
•UK Sep Composite PMI 54.9 ,54.1 forecast, 54.1 previous
•EU Aug PPI (YoY) 13.5% forecast, 12.1% previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Aug Imports 52.97B previous
•12:30 Canada Aug Trade Balance 0.43B forecast, 0.78B previous
•12:30 Canada Aug Exports 53.75B previous
•12:30 US Aug Trade Balance -70.50B forecast, -70.10B previous
•12:30 US Exports 212.80 B previous
•12:30 US Imports 282.90B previous
•12:45 US Redbook (YoY) 16.5% previous
•13:45 US Services PMI 54.4 previous
•13:45 US Sep Markit Composite PMI 54.5 previous
•14:00 US Sep ISM Non-Manufacturing PMI 60.0 forecast, 61.7 previous
•14:00 US Sep ISM Non-Manufacturing Prices 75.4 previous
•14:00 US Sep ISM Non-Manufacturing Employment 53.7 previous
•14:30 new Zealand GlobalDairyTrade Price Index 1.0% previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 ECB President Lagarde Speaks
•17:15 FOMC Member Quarles Speaks
Fxbeat
EUR/USD: The euro declined on Tuesday as dollar strengthened ahead of a key payrolls report at the end of the week that could boost the case for the Federal Reserve to start tapering stimulus as soon as next month The dollar also benefited from haven demand amid worries spanning the risk of global stagflation to the U.S. debt ceiling standoff. Immediate resistance can be seen at 1.1621 (50%fib), an upside break can trigger rise towards 1.1655(61.8%fib).On the downside, immediate support is seen at 1.1590(38.2%fib), a break below could take the pair towards 1.1549 (23.6%fib).
GBP/USD: Sterling strengthened against dollar as traders turn their attention back to the prospect of interest rate rises in Britain. Rising inflation expectations hit risk sentiment last week and saw bond yields climb higher, pushing risk-sensitive sterling to a two-month low versus the euro and to its lowest level against the dollar since December 2020. Versus the dollar, sterling was 0.1% higher at $1.3620, not far from the week’s high, touched the previous day. Immediate resistance can be seen at 1.3643(50%fib),an upside break can trigger rise towards 1.3682(61.8%fib).On the downside, immediate support is seen at 1.3578(38.2%fib), a break below could take the pair towards 1.3495(23.6%fib).
USD/CHF: The dollar strengthened against Swiss franc on Tuesday as rising U.S. Treasury yields and concerns over the China Evergrande crisis boosted demand for dollar. The dollar was supported by rising U.S. Treasury yields as Washington wrangled over the debt ceiling. Yields have also been pushed higher recently by concerns that elevated inflation could bring forward a timeline for the Federal Reserve to taper its stimulus measures. Immediate resistance can be seen at 0.9284 (38.2% fib), an upside break can trigger rise towards 0.9293 (5DMA).On the downside, immediate support is seen at 0.9232(38.2% fib), a break below could take the pair towards 0.9191(61.8%fib).
USD/JPY: The dollar strengthened against yen on Tuesday as greenback regained strength ahead of U.S. payrolls data on Friday seen as key to the Federal Reserve’s next move. The U.S. dollar edged back towards a one-year high versus major peers ahead of a key payrolls report at the end of the week that could boost the case for the Fed to start tapering stimulus as soon as next month. The dollar gained 0.25% to 111.19 yen. Strong resistance can be seen at 111.26(38.2%fib), an upside break can trigger rise towards 111.76(23.6%fib).On the downside, immediate support is seen at 110.85(50%fib), a break below could take the pair towards 110.46(61.8%fib).
Equities Recap
European stocks rose on Tuesday, as surging bank stocks and a positive earnings update from German chipmaker Infineon calmed nerves following a tech-fuelled selloff on Wall Street.
At (GMT 10:14 ),UK's benchmark FTSE 100 was last trading up at 0.63 percent, Germany's Dax was up by 0.44 percent, France’s CAC was last up by 0.83 percent.
Commodities Recap
Gold prices fell on Tuesday as the dollar benefited from subdued risk sentiment, with bullion likely to see choppy trade in the run up to Friday’s U.S. jobs numbers that could dictate the Federal Reserve’s tapering plans.
Spot gold fell 0.6% to $1,758.27 per ounce by 0643 GMT, after hitting $1,770.41 on Monday, its highest since Sept. 23. U.S. gold futures shed 0.6% to $1,757.30.
Brent crude oil futures stuck near three-year highs on Tuesday, with U.S. benchmark crude close to 2014 peaks, after the OPEC+ supplier group decided to stick to a gradual output increase plan rather than fully opening the taps.
Brent crude was up 51 cents or 0.6% at $81.77 a barrel by 0845 GMT, having rising 2.5% on Monday. U.S. West Texas Intermediate (WTI) oil rose 50 cents or 0.6% to $80.98, after gaining 2.3% the previous session
