Market Roundup
•US construction spending (MoM) (Aug) -0.1%, 0.2% forecast, -0.5% previous
•Canada manufacturing PMI (Sep) 50.4, 49.5 previous
• US manufacturing PMI (Sep) 47.3, 47.0 forecast, 47.9 previous
• US ISM manufacturing employment (Sep) 43.9, 47.0 forecast, 46.0 previous
• US ISM manufacturing new orders index (Sep) 46.1, 45.0 forecast, 44.6 previous
• US ISM manufacturing pmi (Sep) 47.2, 47.6 forecast, 47.2 previous
• US ISM manufacturing prices (Sep) 48.3, 53.5 forecast, 54.0 previous
• US jolts job openings (Aug) 8.040m, 7.640m forecast, 7.711m previous
• US Dallas Fed services revenues (Sep) 10.1, 8.7 previous
• US Texas Services Sector Outlook (Sep) -2.6, -7.7 previous
Looking Ahead Economic Data(GMT)
•05:00 Japan Household Confidence (Sep) 37.1forecast,, 36.7 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
EUR/USD: The euro dipped against dollar on Tuesday after weaker-than-expected inflation data fueled speculation of further ECB rate cuts. Euro zone inflation dipped below 2% for the first time since mid-2021 in September, reinforcing an already solid case for a European Central Bank rate cut this month as a three-year battle to tame runaway price growth nears its end. Inflation in the 20 countries sharing the euro currency eased to 1.8% in September from 2.2% in August, Eurostat data showed on Tuesday, coming below expectations for 1.9% in a Reuters poll, primarily on falling energy costs and muted goods prices. The euro was down 0.58% at $1.1069 Immediate resistance is noted at 1.1113 (38.2%fib), with a breakout potentially pushing the pair towards 1.1146 (Daily high). On the downside, immediate support is at 1.1061 (50%fib), a drop below this level could lead the pair towards 1.1014 (61.8%fib).
GBP/USD: Sterling dipped against a firming dollar on Tuesday after survey data confirmed a slowdown in UK factory activity in September, but the British currency was still in sight of recent highs. The S&P Global UK Manufacturing Purchasing Managers' Index slipped to 51.5 in September, unchanged from a preliminary estimate, as British manufacturers worried about the new government's first budget. The pound was down 0.09% at $1.3273 a day after closing out its strongest quarter in two years alongside a broader improvement in risk appetite. It hit a more than two-year high against the greenback just last week. Immediate resistance can be seen at 1.3417(23.6%fib), an upside break can trigger rise towards 1.3449(Higher BB).On the downside, immediate support is seen at 1.3315(38.2%fib), a break below could take the pair towards 1.3274(50%fib).
USD/CAD The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil prices climbed on the escalating Middle East conflict and domestic data showed factory activity rising for the first time in 17 months. The price of oil, one of Canada's major exports, climbed 3.8% to $70.78 a barrel following reports Iran was preparing to launch a missile attack on Israel.The S&P Global Canada Manufacturing Purchasing Managers' Index increased to 50.4 in September from 49.5 in August, its first move above the 50.0 no-change mark since April 2023 . The Canadian dollar was trading 0.2% higher at 1.35 per U.S. dollar, recovering after touching its weakest level since Sept. 24 at 1.3539 earlier in the day. Immediate resistance can be seen at 1.3544 (38.2%fib), an upside break can trigger rise towards 1.3588 (50%fib).On the downside, immediate support is seen at 1.3484(38.2%fib), a break below could take the pair towards 1.3400 (Psychological level).
USD/JPY: The dollar edged higher the yen on Tuesday after an Iranian missile attack on Israel drove buying of safe assets as investors fretted about the widening of conflict in the Middle East.Israel said Iran fired more than 180 ballistic missiles and Iran's Revolutionary Guard Corps said the attack was retaliation for Israeli killings of militant leaders and aggression in Lebanon against the Iran-backed armed movement Hezbollah.No injuries were reported in Israel. Iran previously struck Israel in April, without causing major damage or a lasting reaction in financial markets. The dollar weakened 0.08% to 143.51 against the Japanese yen .Strong resistance can be seen at 144.73 (38.2%fib), an upside break can trigger rise towards 145.00 (psychological level). On the downside, immediate support is seen at 141.60(23.6%fib), a break below could take the pair towards 140.36(Lower BB).
Equities Recap
European shares reversed initial gains to close lower on Tuesday, as investors moved out of riskier assets amid escalating geopolitical fears that Iran was planning an attack on Israel.
UK's benchmark FTSE 100 closed up by 0.48 percent, Germany's Dax ended down by 0.58 percent, France’s CAC finished the day down by 0.58 percent.
Wall Street's main indexes took a beating on Tuesdayas reports of escalating tensions in the Middle East made investors sell riskier assets, with the benchmark S&P 500 hitting its lowest in over a week.
Dow Jones closed down by 0.41%percent, S&P 500 closed down by 0.93% percent, Nasdaq settled down by 1.53 % percent.
Commodities Recap
Gold prices jumped over 1% on Tuesday on safe-haven demand as fears of a full-out war in the Middle East escalated after Iran fired ballistic missiles at Israel.
Spot gold gained 1% to $2,661.63 per ounce, as of 1:40 p.m. ET (1740 GMT), after hitting an all-time high of $2,685.42 on Thursday. U.S. gold futures settled 0.9% higher at $2,690.3.
U.S. West Texas Intermediate (WTI) crude futures rose by $1.09, or 1.56%, to $70.92 per barrel at 2254 GMT on fears of oil supply disruptions in the Middle East after Iran fired ballistic missiles at Israel.
Brent futures will resume trading at 0000 GMT on Wednesday. Brent gained $1.86, or 2.6%, on Tuesday to settle at $73.56 a barrel.
