Market Roundup
• Italian Aug Industrial Production (YoY) 0.0%, -0.7% forecast, 7.0% previous
• Italian Aug Industrial Production (MoM) -0.2%, -0.3% forecast, 0.8% previous
• Portuguese Aug Trade Balance -4.83B,-4.42B previous
Looking Ahead Economic Data (GMT)
•13:00 French 6-Month BTF Auction -0.679% previous
•13:00 French 3-Month BTF Auction -0.756% previous
•13:00 French 12-Month BTF Auction -0.648% previous
• 14:00 US Sep CB Employment Trends Index 110.37 previous
•15:30 US 6-Month Bill Auction 0.055% previous
•15:30 US 3-Month Bill Auction 0.040% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged lower on Monday as dollar strengthen investors remained confident the U.S. Federal Reserve will announce a tapering of its massive bond-buying next month despite softer U.S. payrolls figures . U.S. currency and fixed income markets are closed on Monday for a holiday but the yield on benchmark 10-year Treasuries hit a four-month high of 1.617% on Friday, even after data showed the U.S. economy created the fewest jobs in nine months in September, missing forecasts. The euro was softer at $1.1575, hovering a tad above Wednesday’s low of $1.1529, its weakest since July last year. Immediate resistance can be seen at 1.1573 (50%fib), an upside break can trigger rise towards 1.1591(10DMA).On the downside, immediate support is seen at 1.1541(38.2%fib), a break below could take the pair towards 1.1500(Psychological level).
GBP/USD: Sterling strengthened against the dollar on Monday after the Bank of England urged Britons, in interviews published over the weekend, to get ready for earlier interest rate rises as inflation pressure mounted in Britain. The bank’s governor, Andrew Bailey, said in an interview to The Yorkshire Post newspaper that inflation running above the BoE’s target of 2.0% was very concerning and it had to be managed to prevent it from becoming permanently embedded. Sterling rose 0.2% versus the dollar to $1.3645 at 0750 GMT, after briefly touching a two-week high. Immediate resistance can be seen at 1.3677(50%fib),an upside break can trigger rise towards 1.3746 (61.8%fib).On the downside, immediate support is seen at 1.3608(23.6%fib), a break below could take the pair towards 1.3569(10DMA).
USD/CHF: The dollar strengthened against Swiss franc on Monday as investors remained confident the U.S. Federal Reserve would start paring its stimulus this year. The Fed may move to begin reducing its support for the economy next month despite the slowdown in jobs gains in September. Data on Friday showed U.S. nonfarm payrolls increased by 194,000 jobs in September, below economists' forecast of 500,000. Meanwhile, the unemployment rate dropped to an 18-month low of 4.8% and wage gains accelerated. Immediate resistance can be seen at 0.9287(10DMA), an upside break can trigger rise towards 0.9320 (23.6% fib).On the downside, immediate support is seen at 0.9257(38.2% fib), a break below could take the pair towards 0.9211(23.6%fib).
USD/JPY: The dollar rose against yen on Monday as rising Treasury yields lifted the dollar across the board. The dollar was underpinned as U.S. yields outpaced those in Germany and Japan, lifting it to the highest since late 2018 on the yen at 112.90. This week’s focus will be on U.S. inflation and retail sales data, and minutes of the Federal Reserve's last meeting which should confirm that a November tapering was discussed. Strong resistance can be seen at 112.99(23.6%fib), an upside break can trigger rise towards 113.23(Daily high).On the downside, immediate support is seen at 112.41(38.2%fib), a break below could take the pair towards 111.99(50%fib).
Equities Recap
European stocks kicked off the week slightly lower on Monday as nerves around inflation and the upcoming earnings season offset surging commodity prices that supported oil and mining shares.
At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading up at 0.21 percent, Germany's Dax was down by 0.52 percent, France’s CAC was last down by 0.40 percent.
Commodities Recap
Gold eased slightly on Monday as the dollar firmed on expectations that the Federal Reserve would move forward with its plans to taper economic support despite U.S. September jobs data falling short of forecasts.
Spot gold fell 0.2% to $1,752.68 per ounce by 0942 GMT, while U.S. gold futures eased 0.2% to $1,753.20.Spot silver fell 0.6% to $22.53.
Oil prices rose more than $2 on Monday, extending gains as an energy crisis grips major economies amid a pick-up in economic activity and restrained supplies from major producers.
Brent crude was up $2.17, or 2.6%, at $84.56 a barrel by 1136 GMT, its highest since October 2018.
U.S. West Texas Intermediate (WTI) crude rose $2.67, or 3.4%, to $82.02 for its highest since late 2014.
