Market Roundup
•Finnish Aug Unemployment Rate 7.5%,7.0% previous
•UK Sep CBI Industrial Trends Orders -48, -40 forecast, -44 previous
Looking Ahead – Economic Data (GMT)
•US Redbook (MoM) -1.6% previous
•US Redbook (YoY) -1.2% previous
•Brazil Federal Tax Revenue 110.20B forecast, 115.90B previous
•US Sep Richmond Manufacturing Shipments 22 previous
•US Aug Existing Home Sales (MoM) 2.4%forecast,24.7% previous
•US Sep Richmond Manufacturing Index 18 previous
•US 2-Year Note Auction 0.155% previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 US Chicago Fed President Evans Speaks
•14:00 ECB's Lane Speaks
•14:30 US Fed Chair Powell Testifies
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as possible delays in expanded U.S. stimulus and concerns about fresh pandemic lockdowns in Europe dented investors sentiment. Concerns are growing about a delay in stimulus measures after the U.S. Congress has remained deadlocked for weeks over the size and shape of another coronavirus-response bill, on top of the roughly $3 trillion already enacted into law. The coronavirus also remained front and centre of investor concerns. New pandemic measures in the UK set off declines in airline, hotel and cruise companies in both European and U.S. markets, spurring fears about further restrictions. Immediate resistance can be seen at 1.1774 (5 DMA), an upside break can trigger rise towards 1.1803 (5DMA).On the downside, immediate support is seen at 1.1737 (38.2% fib), a break below could take the pair towards 1.1640 (23.6%fib).
GBP/USD: The pound slipped to two-month lows against the dollar on Tuesday ahead of a fresh set of mobility restrictions to be imposed by British Prime Minister Boris Johnson to tackle the second wave of the coronavirus outbreak. Johnson will tell people on Tuesday to work from home and announce new curbs on pubs, bars and restaurants, stopping some way short of a full national lockdown of the sort he imposed in March. Sterling fell 0.51% to $1.2751 against the dollar, the lowest level since July 24. Immediate resistance can be seen at 1.2864 (38.2% fib), an upside break can trigger rise towards 1.2885(11 DMA).On the downside, immediate support is seen at 1.2713 (23.6%fib), a break below could take the pair towards 1.2700 (Psychological level).
USD/CHF: The dollar held tight ranges against Swiss franc on Tuesday as investors awaited U.S. Federal Reserve Chair Jerome Powell’s appearance at a congressional committee. investors were looking to Federal Reserve Chair Jerome Powell’s appearance on Capitol Hill this week to address lawmakers’ questions about the raft of emergency measures the central bank has taken to cushion the blow to the economy from the pandemic. Immediate resistance can be seen at 0.9165 (38.2% fib), an upside break can trigger rise towards 0.9174(Higher BB).On the downside, immediate support is seen at 0.9135 (50% fib), a break below could take the pair towards 0.9100 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as fears of a second wave of global cornavirus infections increased demand for Japanese yen. Investors are also fretting that the chances of more fiscal stimulus in the U.S. are ebbing as campaigning dominates the political landscape. The Japanese currency has been among the best performing majors this month as jitters in stock markets have driven safe-haven demand. Strong resistance can be seen at 104.88 (21sep high), an upside break can trigger rise towards 105.17 (38.2%fib).On the downside, immediate support is seen at 104.54 (Lower BB ), a break below could take the pair towards 104.00(23.6% fib).
Equities Recap
European stocks bounced on Tuesday after a sell-off in the previous session, as technology and healthcare stocks gained, but worries about new coronavirus restrictions in Britain and elsewhere kept travel stocks under pressure.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.53percent, Germany's Dax was upby 0.76 percent, France’s CAC was last up by 0.33 percent.
Commodities Recap
Gold fell on Tuesday as the dollar climbed to its highest in over a month, while investors remained doubtful over additional stimulus measures to aid the coronavirus-hit economy ahead of speeches from Federal Reserve officials this week.
Spot gold had fallen 0.45% to $1,904.00 per ounce by 1001 GMT, after dipping to $1,882.70 on Monday, its lowest level since Aug. 12.U.S. gold futures fell 0.1% to $1,909.10 per ounce.
Oil prices rose on Tuesday as analysts took the view renewed lockdown restrictions would have only a limited impact on fuel demand, partly reversing a steep drop in prices the previous day.
Brent crude was up 54 cents, or 1.3%, to $41.98 per barrel at 1033 GMT.U.S. West Texas Intermediate (WTI) crude for October, due to expire on Tuesday, rose 63 cents, or 1.6%, to $39.94.
