Market Roundup
•German Aug Factory Orders (MoM) -7.7%,-2.1%forecast ,3.4% previous
•German Sep IHS Markit Construction PMI 47.1, 44.6 previous
•UK Sep Construction PMI 52.6, 54.0 forecast, 55.2 previous
•UK Housing Equity Withdrawal (QoQ) 7.2B,4.0B previous
•EU Aug Retail Sales (MoM) 0.3%,0.8% forecast, -2.3% previous
•EU Aug Retail Sales (YoY) 0.0%,0.4% forecast, 3.1% previous
•US Sep ADP Nonfarm Employment Change 568K,428K forecast, 374K previous
•14:30 US Gasoline Inventories 3.256M, -0.279M forecast, 0.193M previous
•14:30 US Crude Oil Inventories 2.346M, -0.418M forecast, 4.578M previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•15:30 US FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Wednesday as german industrial orders fall more than expected in August. The figures published by the Federal Statistics Office showed orders for goods 'Made in Germany' were down by 7.7% on the month in seasonally adjusted terms. A Reuters poll of analysts had pointed to a drop of 2.1% on the month.Immediate resistance can be seen at 1.1562 (38.2%fib), an upside break can trigger rise towards 1.1593(50%fib).On the downside, immediate support is seen at 1.1529(Lower BB), a break below could take the pair towards 1.1500 (Psychological level).
GBP/USD: The British pound dropped half a percent against the dollar on Wednesday as a further surge in energy prices and government bond yields sent investors into safer currencies. Sterling hit as low as $1.3559 and was 0.1% weaker versus the euro at 85.18 pence.The U.S. dollar, measured against a basket of currencies, is close to its strongest level in more than a year. The jump in oil and gas prices has heightened fears of a spike in inflation, pushing government bond yields higher as investors bet central banks will be forced to raise interest rates to curb prices rises.. Immediate resistance can be seen at 1.3625(50%fib),an upside break can trigger rise towards 1.3687(61.8%fib).On the downside, immediate support is seen at 1.3552(38.2%fib), a break below could take the pair towards 1.3469(23.6%fib).
USD/CHF: The dollar strengthened against Swiss franc on Wednesday as investors sought safe-haven in greenback amid nervousness surging energy prices could spur inflation and interest rate hikes. On Wednesday, focus was back on global events, mostly on U.S. jobs data to be released on Friday where investors will look for clues on the timing of Federal Reserve policy tightening. Immediate resistance can be seen at 0.9310 (38.2% fib), an upside break can trigger rise towards 0.9363 (23.6%fib).On the downside, immediate support is seen at 0.9276(5DMA), a break below could take the pair towards 0.9264(50%fib).
USD/JPY: The dollar initially gained against yen on Wednesday but gave up ground as concerns about inflation and interest rate hikes drove flows to safe-haven yen . Rising inflationary pressures could pose headwinds to growth and have implications for how soon the Federal reserve can raise interest rates. The U.S. payrolls report at the end of the week, which could provide clues to the U.S. Federal Reserve's next move, remains a point of focus for investors. Strong resistance can be seen at 111.75(23.6%fib), an upside break can trigger rise towards 111.93(Higher BB).On the downside, immediate support is seen at 111.17(38.2%fib), a break below could take the pair towards 111.03(11DMA).
Equities Recap
Technology, travel and retail shares fuelled declines in European stocks on Wednesday as soaring oil and gas prices intensified concerns about higher inflation denting economic growth.
At (GMT 15:21 ),UK's benchmark FTSE 100 was last trading down at 1.06 percent, Germany's Dax was down by 1.48 % percent, France’s CAC was last down by 1.21 percent.
Commodities Recap
Gold prices edged lower on Wednesday pressured by a resilient dollar and higher U.S. bond yields in the run-up to Friday’s U.S. labour market report that could determine the Federal Reserve’s tapering schedule.
Spot gold fell 0.2% to $1,756.30 per ounce by 1126 GMT, while U.S. gold futures shed 0.5% to $1,752.90.
Oil hit a multi-year high on Wednesday above $83 a barrel, supported by OPEC+'s refusal to ramp up production more rapidly against a backdrop of concern about tight energy supply globally.
Brent crude rose as high as $83.47, the highest since October 2018, and at 1115 GMT was down 40 cents, or 0.5%, at $82.16. U.S. crude climbed to $79.78, the highest since November 2014, and was later down 35 cents at $78.58.
