Market Roundup
• French 12-Month BTF Auction 2.647% , 2.531% previous
• French 3-Month BTF Auction 3.085%,3.055% previous
• French 6-Month BTF Auction: 2.892% ,2.778% previous
• US CB Employment Trends Index (Oct) 107.66 ,108.48 previous
• US Durables Excluding Defense (MoM) (Sep) -1.1%, -1.1% previous
• US Durables Excluding Transport (MoM) (Sep) 0.5%,0.4% previous
• US Factory Orders (MoM) (Sep) -0.5% , -0.4% previous
• US Factory Orders Ex Transportation (MoM) (Sep) 0.1%,-0.1% previous
• US Total Vehicle Sales (Oct) 16.20M, 15.60M, forecast, 15.80M previous
Looking Ahead Economic Data(GMT)
• 01:45 China Caixin Services PMI (Oct) 50.5 forecast ,50.3 previous
•03:30 Australia RBA Interest Rate Decision (Nov) 4.35% forecast, 4.35% previous
Looking Ahead Economic Data(GMT)
•03:30 Australia RBA Monetary Policy Statement
• 03:30 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro touched a two-week high on Monday after HCOB's final euro zone manufacturing PMI index increased for October .Euro zone manufacturing showed some signs of stabilisation in October as while activity contracted for a 28th month it did so at a shallower pace, according to a survey which showed an ongoing decline in demand had also eased.HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 46.0 in October, ahead of a 45.9 preliminary estimate but still below the 50 mark separating growth from contraction. An index measuring output, which feeds into a composite PMI due on Wednesday, seen as a good guide to economic health, jumped to 45.8 from 44.9 in September and was ahead of the 45.5 flash estimate. .Immediate resistance can be seen at 1.0914(50%fib), an upside break can trigger rise towards 1.0953(61.8%fib).On the downside, immediate support is seen at 1.0871(38.2%fib), a break below could take the pair towards 1.0858 (5SMA).
GBP/USD: Sterling edged higher against dollar on Monday as investors turned their focus to the Bank of England's upcoming interest rate decision on Thursday. The Bank of England is widely expected to cut the bank rate by 25 bps to 4.75% at the November meeting. Though, in light of the autumn budget and the subsequent reaction in the gilt market, the rhetoric and economic projections may be of greater importance for the pound.The voting pattern will also garner attention. The consensus is for a 7-2 split, but recent changes on the MPC may lead to a slightly more dovish 8-1 split, in which Catherine Mann is the lone dissenter. Immediate resistance can be seen at 1.3000(Psychological level), an upside break can trigger rise towards 1.3029(38.2%fib).On the downside, immediate support is seen at 1.2953(38.2%fib), a break below could take the pair towards 12860(23.6%fib).
USD/CAD: The Canadian dollar firmed against its U.S. counterpart on Monday as the market focused on the U.S. presidential election and the Federal Reserve's policy decision later this week. All eyes are on Tuesday's U.S. election, with polls suggesting Democrat Kamala Harris and Republican Donald Trump are in a virtually neck-and-neck race to win the White House.The Fed's interest-rate decision on Thursday will also generate much intrigue, with market participants widely expecting a 25-basis-point cut.This week, domestic investors will also focus on Canada's unemployment figures and the minutes from the Bank of Canada's last monetary policy meeting that resulted in a 50-bps cut. Immediate resistance can be seen at 1.3927(Daily high), an upside break can trigger rise towards 1.3941(Higher BB).On the downside, immediate support is seen at 1.3873(38.2%fib), a break below could take the pair towards 1.3815(50%fib).
USD/JPY: The dollar dipped against the yen on Monday as investors treaded carefully before the U.S. presidential election that will impact the world economy, with a U.S. Federal Reserve interest rate cut also expected later in the week. In the U.S. presidential race, Democratic candidate Kamala Harris and Republican candidate Donald Trump remain virtually tied in opinion polls ahead of Tuesday's vote. It might not be clear who has won for days after voting ends.Trump's policies on immigration, tax cuts and tariffs may put upward pressure on inflation, bond yields and the dollar. The week will also provide investors with global monetary policy catalysts. The most closely watched of a slew of rate decisions is the Fed, while decisions are also due from the Bank of England (BoE), the Reserve Bank of Australia (RBA).Markets are leaning towards a 25-basis-point Fed rate cut. Immediate resistance can be seen at 152.72(5SMA) an upside break can trigger rise towards 153.47(23.6 %fib). On the downside, immediate support is seen at 151.48(38.2 %fib), a break below could take the pair towards 151.00(Psychological level).
Equities Recap
European shares dipped on Monday as losses in technology stocks offset gains in banks and oil shares, and the focus was on the U.S. presidential election..
UK's benchmark FTSE 100 closed up by 0.09 percent, Germany's Dax ended down by 0.47 percent, France’s CAC finished the day down by 0.50 percent.
U.S. stocks closed in losses on Monday as investors prepared for a crucial week in which Americans will elect a new president and the Federal Reserve will announce its policy statement.
Dow Jones closed down by 0.53 % percent, S&P 500 closed down by 0.14% percent, Nasdaq settled down by 0.17% percent.
Commodities Recap
Oil prices climbed nearly 3% on Monday on OPEC+'s decision to delay plans to increase output by a month, while the market braced for a critical week in which Americans will elect a new president.
Brent futures were up $2.05, or 2.8%, at $75.15 a barrel by 12:50 p.m. ET (1750 GMT). U.S. West Texas Intermediate (WTI) crude rose $2.09, or 3.0%, to $71.56.
Gold prices edged up on Monday, as U.S. election uncertainty loomed with markets pricing in chances of a contested result and political tensions, while investors also kept a close tab on the Federal Reserve policy meeting later this week.
Spot gold was up 0.1% at $2,737.35 per ounce as of 1:52 p.m. ET (1852 GMT), having hit a record high of $2,790.15 last Thursday.U.S. gold futures settled 0.1% lower at $2,746.20.
