Market Roundup
• Trump criticizes China’s trade practices, won’t take ‘bad deal’
• U.S. consumer confidence plunges in September
• Oil prices fall due to weak economic data, Saudi output recovery
• US Redbook (MoM) -1.1%, -0.9% previous
•US Redbook (YoY) 5.2%, 5.4% previous
• US Jul House Price Index (MoM) 0.4%, 0.3% forecast, 0.2% previous
• US Jul House Price Index (YoY) 5.0%,4.8% previous
• US Jul House Price Index 276.9, 275.6 previous
• Belgium Sep NBB Business Climate -5.7, -5.7 forecast,-5.8 previous
• US Sep CB Consumer Confidence 125.1, 134.1 forecast, 134.2 previous
• US Sep Richmond Manufacturing Index -9, 2 forecast, 1 previous
• US Sep Richmond Manufacturing Shipments -14, 5 previous
• US Sep Richmond Services Index 6, 6 previous
• Brazil Aug Federal Tax Revenue 119.95B, 118.40B forecast, 137.74B previous
Looking Ahead - Economic Data (GMT)
• 22.45 New Zealand Aug Exports 5.03B previous
• 22.45 New Zealand Aug Imports 5.71B previous
• 22.45 New Zealand Aug Trade Balance (YoY) -1,464M forecast , -685M previous
•23:50 Japan Corporate Services Price Index (CSPI) (YoY) 0.5% forecast, 0.5% previous
• 02.00 New Zealand RBNZ Interest Rate Decision 1.00% forecast, 1.00% previous
Looking Ahead - Events, Other Releases (GMT)
•23:50 Japan Monetary Policy Meeting Minutes
•01:30 Japan BoJ Board Member Masai Speaks
• 02.00 New Zealand RBNZ Rate Statement
• 03.00 New Zealand RBNZ Press Conference
• 12.00 US Chicago Fed President Evans Speaks
• 14.00 US FOMC Member Brainard Speaks
• 14.00 US FOMC Member George Speaks
• 23.00 US FOMC Member Kaplan Speaks
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Tuesday, as downbeat US consumer confidence data weighed on greenback. U.S. consumer confidence fell by the most in nine months, more than expected, as Americans’ economic outlooks darkened in the face of the U.S.-China trade war, according to a private- sector report released on Tuesday.The Conference Board, an industry group, said its index of consumer attitudes fell to 125.1, from an downwardly revised 134.2 the month before. The euro was up 0.22 percent at $1.1018. An index that tracks the dollar versus a basket of six major currencies was down 0.29 at 98.33. Immediate resistance can be seen at 1.1035 (5 DMA), an upside break can trigger rise towards 1.1099 (50 DMA).On the downside, immediate support is seen at 1.0963 (Higher BB), a break below could take the pair towards 1.0900 (Psychological level).
GBP/USD: Britain's pound rose against the dollar on Tuesday, as the UK Supreme Court ruled Prime Minister Boris Johnson’s decision to suspend parliament was unlawful. The Supreme Court’s decision, which called Prime Minister Boris Johnson’s suspension of parliament unlawful and said lawmakers should return to sitting, is widely seen as reducing the probability of Britain leaving the European Union without a divorce agreement on Oct. 31.After the court ruling, the British currency strengthened as much as 0.6% to $1.2489 , having hit $1.2582 last week. Immediate resistance can be seen at 1.2492 (100 DMA), an upside break can trigger rise towards 1.2583 (Higher BB).On the downside, immediate support is seen at 1.2410 (Daily low), a break below could take the pair towards 1.2328 (21 DMA).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Tuesday, as investors grew more optimistic on trade talks between the United States and China. U.S. stocks rose as Washington confirmed that trade negotiations with China would resume in two weeks, easing some uncertainty caused by the cancellation of a planned U.S. farm visit by Chinese delegates last week. Oil prices fell as investors bet that Saudi Arabia could restore oil output faster than anticipated following attacks last week.The Canadian dollar was trading 0.1% higher at 1.3243 to the greenback. The currency's weakest level was 1.3266, while it touched its strongest since last Thursday at 1.3231.Immediate resistance can be seen at 1.3252 (9 DMA), an upside break can trigger rise towards 1.3303 (200 DMA).On the downside, immediate support is seen at 1.3226 (50 DMA), a break below could take the pair towards 1.3200 (Psychological level).
USD/JPY: The dollar declined against Japanese yen on Tuesday, as weak consumer confidence data and President Donald Trump's comments on China weighed on greenback. Data showed a drop in consumer confidence in September to a reading of 125.1, from a downwardly revised 134.2 in August as persistent trade tensions worried consumers, possibly weighing on their spending. Trump kept trade tensions with China boiling on Tuesday, saying at the United Nations General Assembly that he would not accept a "bad deal" in trade negotiations with the world's second largest economy. Strong resistance can be seen at 107.23 (20 DMA), an upside break can trigger rise towards 107.77 (100 DMA).On the downside, immediate support is seen at 106.59 (Ichimoku Cloud Bottom), a break below could take the pair towards 106.00 (61.8% retracement level).
Equities Recap
European shares declined on Tuesday, as a push by some Democrats for the impeachment of U.S. President Donald Trump gained momentum.
UK's benchmark FTSE 100 closed down 0.47 percent, Germany's Dax ended down by 0.29 percent, France’s CAC finished the day down by 0.04 percent.
U.S. stocks were down sharply in volatile trading on Tuesday as a push by some Democrats for the impeachment of U.S. President Donald Trump gained momentum.
Dow Jones closed up by 0.16 percent, S&P 500 ended up by 0.46 bpercent, Nasdaq finished the day up by 0.60 percent.
Treasuries Recap
Yields on long-dated U.S. Treasury debt fell for a seventh straight session on Tuesday in choppy trading, with investors caught between two competing forces heavy supply this week and upcoming month-end and quarter-end portfolio rebalancing.
U.S. 10-year note yields fell to 1.669% from 1.708% late on Monday. Yields on 30-year bonds were also lower at 2.116%, from 2.153% on Monday.
Commodities Recap
Gold was little changed on Tuesday, hovering near the two-week peak hit in the previous session on global growth concerns, though further talks in the U.S.-China trade dispute could yet dent appeal for the safe-haven metal.
Spot gold was steady at $1,520.99 an ounce at 1131 GMT, having hit its highest since Sept. 6 at $1,526.80 on Monday.U.S. gold futures were down 0.2% at $1,528.
Oil prices plunged more than 2% on Tuesday to their lowest since the Sept. 14 attacks on Saudi Arabia’s key oil facilities, after U.S. President Donald Trump rekindled fears the Sino-American trade conflict that has crimped energy demand is far from over.
Brent crude futures, the international standard, settled $1.67, or 2.6%, lower at $63.10 a barrel, while West Texas Intermediate futures ended at $57.29 a barrel, down $1.35, or 2.3%.
