Market Roundup
• Canada Aug Building Permits (MoM) -2.1%, -3.9% previous
• French 6-Month BTF Auction -0.679%, -0.677% previous
• French 3-Month BTF Auction-0.756%, -0.739% previous
• French 12-Month BTF Auction -0.648%,-0.650% previous
•US Aug Factory orders ex transportation (MoM) 1.2%, 0.8% previous
•US Aug Durables Excluding Defense (MoM) 2.4%,2.4% previous
•US Factory Orders (MoM) 0.5%,1.0% forecast, 0.4% previous
•US 6-Month Bill Auction 0.055%,0.050% previous
•US 3-Month Bill Auction 0.040% ,0.035% previous
Looking Ahead Economic Data (GMT)
•00:30 Australia Retail Sales (MoM)Retail Sales (MoM) -1.7% previous
•00:30 Australia ANZ Job Advertisements (MoM) -2.5% previous
•00:30 Australia Sep NAB Business Confidence -5 previous
•00:30 Australia Aug Trade Balance 10.300B forecast, 12.117B previous
•03:30 Australia Oct RBA Interest Rate Decision 0.10% forecast, 0.10% previous
Looking Ahead - Events, Other Releases (GMT)
•03:30 Australia RBA Rate Statement
EUR/USD: The euro edged higher against dollar on Monday as traders looked to U.S. jobs data at the end of the week for clues to the Federal Reserve's next move. Friday’s data is expected to show continued improvement in the job market, with a forecast for 488,000 jobs to have been added in September, according to poll enough to keep the Federal Reserve on course to begin tapering before year’s end. The Fed has signalled it will likely begin reducing its monthly bond purchases as soon as November but a big stumble in labor data could delay its plans. Immediate resistance can be seen at 1.1638 (50%fib), an upside break can trigger rise towards 1.1668(61.8%fib).On the downside, immediate support is seen at 1.1607(38.2%fib), a break below could take the pair towards 1.1566 (23.6%fib).
GBP/USD: Sterling consolidated near a six-day high against the dollar extending gains from a late recovery last week after it hit its lowest levels since December 2020.Rising inflation expectations early last week saw bond yields climb higher and hit risk sentiment in equity markets, pushing sterling to $1.3412, its lowest level since December 2020. Sterling moves closely in line with global risk sentiment. The pound has recovered since the latter part of last week, hitting $1.3610 on Monday, its highest since Sept. 28. Immediate resistance can be seen at 1.3616(50%fib),an upside break can trigger rise towards 1.3675(61.8%fib).On the downside, immediate support is seen at 1.3540(38.2%fib), a break below could take the pair towards 1.3459(23.6%fib).
USD/CAD: The Canadian dollar on Monday strengthened to its highest level in nearly four weeks against its U.S. counterpart as higher oil prices played a bigger role in driving the currency than a selloff on Wall Street. Canada's commodity-linked currency often moves in the same direction as Wall Street because of the signal stocks send about global economic prospects. Oil rose to a three-year peak after OPEC+ confirmed it would stick to its current output policy as demand for petroleum products rebounds across the world. The Canadian dollar was last trading 0.07% higher at 1.2594 to the greenback .Immediate resistance can be seen at 1.2603(38.2%fib), an upside break can trigger rise towards 1.2654(5DMA).On the downside, immediate support is seen at 1.2557(Lower BB), a break below could take the pair towards 1.2530 (50%fib).
USD/JPY: The dollar strengthened against yen on Monday as investors looked ahead to the release this week of September employment data, which could pave the way for the tapering of Federal Reserve asset purchases. Nonfarm payrolls report due on Friday, is expected to show a continued improvement in the labour market, which could influence the Federal Reserve’s timeline for tapering economic support. The U.S. Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.2% lower at 93.802.Strong resistance can be seen at 111.26(38.2%fib), an upside break can trigger rise towards 111.76(23.6%fib).On the downside, immediate support is seen at 110.85(50%fib), a break below could take the pair towards 110.46(61.8%fib).
Equities Recap
European stocks struggled on Monday after their worst weekly showing since February, hit by a growing number of risks including signs of inflation, elevated bond yields and developer China Evergrande's financial troubles.
UK's benchmark FTSE 100 closed down by 0.23 percent, Germany's Dax ended down by 0.79 percent, France’s CAC finished the day down by 0.61 percent.
Wall Street's main indexes tumbled on Monday as investors shifted out of technology stocks in the face of rising Treasury yields, while fresh U.S.-China concerns over trade offered another reason for caution.
Dow Jones closed down by 0.94 percent, S&P 500 closed down by 1.30 percent, Nasdaq settled down by 2.14 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday, spiking sharply on the shortest end of the yield curve as Washington wrangled over the debt ceiling.
The benchmark 10-year yield, which last week rose to its highest level since June at 1.567%, was last up 1.7 basis points at 1.4841%.
Commodities Recap
Oil jumped to a three-year peak on Monday after OPEC+ confirmed it would stick to its current output policy as demand for petroleum products rebounds, despite pressure from some countries for a bigger boost to production.
Brent crude settled up $1.98, or 2.5%, to $81.26 a barrel. It rose 1.5% last week for a fourth consecutive weekly gain, and was back up to highs last seen in 2018.U.S. oil settled up $1.74, or 2.3%, to $77.62 a barrel after gaining for the past six weeks.
Gold prices rose to a more than one-week high on Monday as a weaker dollar and risk off sentiment in the equity market lifted demand for the safe-haven metal.
Spot gold was up 0.3% at $1,764.92 per ounce by 13:37 p.m. EDT (1737 GMT). U.S. gold futures added 0.5% to $1,767.6.
