Market Roundup
• Canada Aug Manufacturing PMI 49.5 ,47.8 previous
• US Manufacturing PMI 47.9, 48.0forecast,49.6 previous
• US Jul Construction Spending (MoM) -0.3%,0.1%forecast,-0.3%previous
• US Aug ISM Manufacturing Employment 46.0 ,43.4 previous
• US Aug ISM Manufacturing New Orders Index 44.6 ,47.4 previous
•US Aug ISM Manufacturing PMI 47.2 ,47.5 forecast,46.8 previous
•US Aug ISM Manufacturing Prices 54.0 , 52.1 forecast, 52.9 previous
•US Atlanta Fed GDPNow 2.0%, 2.5% forecast, 2.5% previous
Looking Events And Other Releases(GMT)
• 01:30 Australia GDP (YoY) (Q2) 1.0% forecast, 1.1% previous
• 01:30 Australia GDP (QoQ) (Q2) 0.2% forecast, 0.1% previous
• 01:30 Australia GDP Capital Expenditure (Q2) -0.9% previous
• 01:30 Australia GDP Chain Price Index (Q2) 0.8% previous
• 01:30 Australia GDP Final Consumption (Q2) 0.6% previous
• 01:30 Australia Aug MI Inflation Gauge (MoM) 0.4% previous
• 01:45 CNY Aug Caixin Services PMI 51.9 forecast,52.1 previous
Looking Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro weakened against the dollar as traders braced for a data-heavy week, including Friday's U.S. payrolls report that could shape the path of interest rate cuts from the Federal Reserve. Investor focus this week will squarely be on the U.S. payrolls data after Fed Chair Jerome Powell last month endorsed an imminent start to interest rate cuts in a nod to concern over a softening in the labour market. Economists surveyed by expect an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July. The euro was 0.3% lower against the dollar at $1.1043 on Tuesday, after slipping to a two week low of $1.1033 earlier in the session. Immediate resistance can be seen at 1.1077(38.2%fib), an upside break can trigger rise towards 1.1132(Aug 20th high).On the downside, immediate support is seen at 1.1022(50%fib), a break below could take the pair towards 1.0968 (61.8%fib).
GBP/USD: The pound softened against greenback on Tuesday as investors took profits ahead of a crucial U.S. jobs report later this week. This year, the pound has been the strongest major currency against the dollar, appreciating by 3.1%, compared to a modest 0.2% rise for the euro. The key factor driving this performance is the expectation that UK interest rates will remain higher for longer compared to the eurozone or the United States. The Bank of England's next monetary policy meeting is in two weeks, but the derivatives market indicates that traders anticipate little chance of an additional 25-basis point cut following June’s reduction. November is now seen as the more likely time for another rate adjustment. Immediate resistance can be seen at 1.3178(38.2%fib), an upside break can trigger rise towards 1.3223(Aug 29th high).On the downside, immediate support is seen at 1.3092(38.2%fib), a break below could take the pair towards 1.3052(61.8%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as lower commodities prices and firmer greenback weighed on Canadian dollar. Oil prices have hit yearly lows, driven down by recent economic data from China indicating weaker demand from one of the world’s largest oil consumers. On the data front, Canadian manufacturing activity rose to a five-month high to 49.5 in August as production and new orders fell at slower rates. Markets will be watching the Bank of Canada's policy meeting on Wednesday, in which it is widely expected to lower its policy rate by 25 basis points for the third time in a row .Immediate resistance can be seen at 1.3565(50% fib), an upside break can trigger rise towards 1.3611 (61.8% fib).On the downside, immediate support is seen at 1.3520(38.2% fib), a break below could take the pair towards 1.3468 (23.6% fib).
USD/JPY: The dollar fell from a two-week high against the yen on Tuesday as the yen was supported by Bank of Japan Governor Kazuo Ueda's continued hawkish stance, suggesting that the central bank might raise rates further if the economy aligns with expectations. Ueda's comments were made in a document presented to a government panel led by outgoing Prime Minister Fumio Kishida, where he elaborated on the BOJ’s July policy decision. His remarks underscored that, despite the global market turbulence partly caused by the BOJ's July rate increase, Ueda remains steadfast in his intention to raise borrowing costs if the bank’s projections come to fruition. Strong resistance can be seen at 147.31(38.2 %fib), an upside break can trigger rise towards 148.00(Psychological level). On the downside, immediate support is seen at 144.61(23.6 %fib), a break below could take the pair towards 143.81(Lower BB).
Equities Recap
European stocks fell on Tuesday in their worst session in nearly a month, as U.S. manufacturing data reignited concerns about a slowdown in global growth ahead of the critical jobs report on Friday.
UK's benchmark FTSE 100 closed down by 0.78 percent, Germany's Dax ended down by 0.97percent, France’s CAC finished the day down by 0.93 percent.
U.S. stocks tumbled on Tuesday, marking the beginning of one of the market's historically worst months, as investors awaited data that could impact the Federal Reserve's decisions on interest rate cuts.
Dow Jones closed up by 1.51% percent, S&P 500 closed down by 2.12% percent, Nasdaq settled down by 3.25% percent.
Commodities Recap
Gold prices fell to their lowest in over a week on Tuesday, weighed down by a strong dollar. Investors are closely watching for U.S. non-farm payrolls data, which could influence the extent of any potential interest rate cut by the Federal Reserve in September.
Spot gold fell 0.4% to $2,490.44 per ounce by 1:52 a.m. ET (1752 GMT).U.S. gold futures GCcv1 settled 0.2% lower to $2,523.00.
Oil prices settled nearly 5% down on Tuesday at their lowest levels in nearly nine months on signs of a deal to resolve a dispute that has halted Libyan crude production and exports.
Brent crude futures closed down $3.77, or 4.9%, at $73.75 a barrel, their lowest level since Dec. 12. West Texas Intermediate crude futures (WTI) , which did not settle on Monday because of the U.S. Labor Day holiday, fell $3.21, or 4.4%, to $70.34.
