Market Roundup
- Fed's Rosengren (Dove): Strong USD all the more reason for 'gradual' rate hike; prefers to first raise ST rates before shrinking BS.
- Fed's Evan's: Rather wait but not primed to dissent vs Dec hike; monetary policy must be calibrated to reflect USD.
- Canada October housing starts slip from September.
- Euro, money market rates fall as ECB converges on Dec deposit rate cut.
- USD 3-mos Libor hit highest in over 3 years (0.3556).
- Euro zone won't release new money for Greece on Monday, but maybe this week.
- Oil down on growing U.S. stockpile worries, weak Wall Street.
- Copper eyes six-year low on dollar strength, China data.
Looking Ahead - Economic Data (GMT)
- --:-- China M2 Money Supply YY* Oct forecast 13.2%, 13.10%-previous
- --:-- China New Yuan Loans* Oct forecast 798.2b, 1050.0b-previous
- --:-- China Outstanding Loan Growth* Oct forecast 15.5%, 15.40%- previous
- 21:45 New Zealand Election Card Retail Sales month Oct 0.90%- previous
- 21:45 New Zealand Election Card Retail Sales YY* Oct 6.10%- previous
- 23:50 Japan Bank Lending YY Oct 2.60%- previous
- 23:50 Japan Current Account NSA JPY*Sep forecast 2235.2b, 1653.1b- previous
- 00:30 Australia NAB Business Conditions Oct 9- previous
- 00:30 Australia NAB Business Confidence Oct 5- previous
- 00:30 Australia Housing Finance* Sep forecast 0%, 2.90%- previous
- 00:30 Australia Invest Housing Finance* Sep -0.40%- previous
- 01:30 China PPI YY*Oct forecast-5.8%, -5.90%- previous
- 01:30 China CPI YY*Oct forecast 1.5%, 1.60%- previous
- 01:30 China CPI MM* Oct forecast -0.2%, 0.10%- previous
- 05:00 Japan Economy Watchers Poll Oct 47.5- previous
Looking Ahead - Events, Other Releases (GMT)
- No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.0710 levels and currently trading at 1.0747 levels. The pair has made session high at 1.0781 and hit lows at 1.0727 levels. The Us dollar made modest gains against Euro on Monday after the European Central Bank announced that it is set to cut its deposit interest rate further lower into negative territory in December. The dollar had surged against euro on Friday after the release of the U.S. non-farm payroll data which showed a rise of 271,000 last month, exceeding analyst's prediction of 180,000 new jobs for October. The euro hit low around 1.0727 against the dollar and gained back modestly to trade around 1.0754 in mid-morning US session, meanwhile dollar lost some ground to the British pound and Swiss franc, falling as much as 0.5 percent against both. To the upside, immediate resistance can be seen at 1.0790. To the downside, immediate support level is located at 1.0730 levels.
GBP/USD is supported in the range of 1.5027 and currently trading at 1.5112 levels. It reached session high at 1.5127 and dropped to session low at 1.5081 levels. Sterling inched towards $1.51 levels on Monday and gained around a third of a percent against the euro, the started to rise around during early US session regaining some lost ground against dollar after the GBP weighted down by dovish BOE and stronger than expected US employment data on Friday. The pound continues to look set for further decline against the dollar as the week is set to see more economic data coming from UK and US. Sterling was up 0.4 percent on the day at $1.5118, almost all of that gain coming in the last hour of trade in London. That was still within sight of Friday's more than six-month low of $1.5027. Against the euro, the pound was 0.3 percent stronger at 71.20 pence. To the upside, immediate resistance can be seen at 1.5130. To the downside, immediate support level is located at 1.5025 levels.
USD/JPY is supported around 122.64 levels and currently trading at 123.18 levels. It to hit session high at 123.54 and made session lows at 122.97 levels.US Dollar slipped lower levels on Monday after the investors looked for more clues when the Fed will raise and fretted about weak Chinese trade data. U.S. face the high probability of higher borrowing costs if the Federal Reserve raises interest rates next month, as is widely expected after Friday's strong jobs report. Investors were also worried about slowdown in China, a key market for many companies, ahead of the crucial holiday shopping season. Data showed China's October exports fell for a fourth month, while imports also dropped, leaving the nation with a record high trade surplus of $61.64 billion. To the upside, immediate resistance can be seen at 123.23. To the downside, immediate support level is located at 122.96 levels.
USD/CAD is supported at 1.3217 levels and is trading at 1.3282 levels. It has made session high at 1.3296 and lows at 1.3260 levels. The Canadian dollar made a modest gain against the U.S. dollar on Monday, as crude oil inched higher following disappointing Chinese trade data, with the currency trading in a narrower range after hit a five-week low against the greenback on Friday. The pair had hit C$1.3318 on Friday after US payrolls printed better than expected figures that raised the prospect of a December rate hike from the Federal Reserve. On the data front, Canadian housing starts declined in October from a strong level in September, suggesting continued slowdown may have hit the homebuilding sector, a report from the national housing agency showed on Monday. To the upside, immediate resistance can be seen at 1.3300. To the downside, immediate support level is located at 1.3244 levels.
Equities Recap
European stocks declined on Monday, as the investors around the world fretted about the weak chinese data and the prospect of US rate hike.
UK's benchmark FTSE 100 closed down by 1 percent, the pan-European FTSEurofirst 300 ended the day down by 1.1 percent, Germany's Dax ended down by 1.6 percent, France's CAC finished the day downby 1.6percent.
US Stocks dropped on Monday as disappointing trade data from world No. 2 economy China stoked concerns over weakening global growth.
Dow Jones closed down by 0.99 percent, S&P 500 ended down by 0.97 percent, Nasdaq finished the day down by 1 percent.
Treasuries Recap
U.S. Treasuries prices dipped on Monday with two-year yields hovered at their highest levels in 5-1/2 years as traders raised bets the Federal Reserve will hike interest rates in December following a strong non-farm payrolls data on Friday.
Benchmark 10-year Treasuries notes were down 3/32 in price with a yield of 2.322 percent, up 1 basis point from late on Friday.
The 10-year yield earlier touched 2.377 percent, which was the highest intraday level since July 21, according to Reuters.
The two-year Treasuries yield was little changed at 0.886 percent. On Friday, it hit 0.958 percent, its highest level since May 2010.
Commodities Recap
Oil prices fell as around 1 percent on Monday, continuing losses for a fourth straight day, pressured by fresh inventory builds at the delivery point for U.S. crude futures and lower Wall Street share prices.
On Monday, the front-month in Brent crude futures settled down 23 cents, or 0.5 percent, at $47.19 a barrel.
The front-month in U.S. crude's West Texas Intermediate (WTI) finished the session down 42 cents, or 1 percent, at $43.87.
The price of gold edged modestly up on Monday, snapping an eight-day losing streak as the dollar retreated, but still hovered near its lowest in three months after robust U.S. jobs data boosted expectations of a U.S. rate hike in December.
Spot gold was up 0.2 percent at $1,090.20 an ounce at 2:32 p.m. EST (1932 GMT), while U.S. gold futures for December delivery settled up 40 cents at $1,188.10 an ounce.
