Market Roundup
•US NY Empire State Manufacturing Index (Oct) -11.90, 3.40 forecast, 11.50 previous
•Canada Common CPI (YoY) (Sep) 2.1%,2.1% forecast, 2.0% previous
•Canada Core CPI (MoM) (Sep) 0.0%,-0.1% previous
•Canada Core CPI (YoY) (Sep) 1.6%,1.5% previous
•Canada CPI (YoY) (Sep) 1.6%,1.8% forecast, 2.0% previous
•Canada CPI (MoM) (Sep) -0.4% , -0.2% forecast, -0.2% previous
•Canada Median CPI (YoY) (Sep) 2.3% ,2.3% forecast, 2.3% previous
•Canada Trimmed CPI (YoY) (Sep) 2.4%, 2.4% forecast, 2.4% previous
•Canada Wholesale Sales (MoM) (Aug) -0.6%,-1.1% 0.4% previous
•USD Redbook (YoY) 5.6%, 5.4% previous
•US Consumer Inflation Expectations (Sep) 3.0%, 3.0% previous
•US 3-Month Bill Auction 4.515%, 4.550% previous
•US 6-Month Bill Auction 4.270%, 4.305% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Core Machinery Orders (MoM) (Aug) -0.1% forecast, -0.1% previous
•23:30 Japan Core Machinery Orders (YoY) (Aug) 3.6% forecast, 8.7% previous
•00:00 Australia MI Leading Index (MoM) (Sep) -0.0% previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro edged lower against dollar on Tuesday as investors awaited the European Central Bank policy meeting on Thursday, where the central bank looks set to deliver another interest rate cut. The ECB is widely expected to cut rates on Thursday, with over 90% of economists polled predicting a 25-basis-point reduction to 3.25% after September's inflation dipped below 2%; most expect another 25 bps cut in December. The tone of the monetary policy statement and press conference will be key for expectations . The euro hit its lowest level since Aug. 8 at $1.0882. Immediate resistance can be seen at 1.0936(38.2%fib), an upside break can trigger rise towards 1.1038(50%fib).On the downside, immediate support is seen at 1.0874(23.6%fib), a break below could take the pair towards 1.0848(Lower BB).
GBP/USD: Sterling strengthened against dollar on Tuesday after mixed labour market data. British wages increased at the slowest rate in more than two years in the three months to August, while vacancies decreased again, according to official figures that will likely be welcomed by the Bank of England as it examines when to lower interest rates further.The Office for National Statistics said that average weekly wages, excluding bonuses, were 4.9% higher than a year ago in the three months to the end of August, in line with the median predictions of analysts . The pound was last up 0.2% at $1.3065, hovering above last week's one-month low of $1.3011.Immediate resistance can be seen at 1.3127(38.2%fib), an upside break can trigger rise towards 1.3188(50%fib).On the downside, immediate support is seen at 1.3060(23.6%fib), a break below could take the pair towards 1.3000(Psychological level).
USD/CAD: The Canadian currency held at a 10-week low versus the US dollar on Tuesday, as investors increased their bets on the Bank of Canada cutting interest rates significantly after domestic data showed inflation slipping below the central bank's 2% objective. Canada's annual inflation rate fell more than expected to 1.6% in September, as fuel prices fell. Investors expect the BoC to cut its benchmark interest rate by half a percentage point at a policy decision on October 23, up from about 50% before the data. The loonie was trading nearly unchanged at 1.3796 to the U.S. dollar , after touching its weakest intraday level since Aug. 6 at 1.3838. Immediate resistance can be seen at 1.3803 (Oct 14th high), an upside break can trigger rise towards 1.3836(23.6%fib).On the downside, immediate support is seen at 1.3754(38.2%fib), a break below could take the pair towards 1.3694 (50%fib).
USD/JPY: The dollar eased against the yen on Tuesday as investors anticipated additional data that may provide new signals about the Federal Reserve's monetary easing cycle . A run of US economic data has showed that the economy is robust and weakening only little, while inflation in September surged somewhat more than expected, prompting traders to reduce their expectations on substantial Fed rate cuts.At its most recent policy meeting in September, the Federal Reserve began its easing cycle with a dramatic 50 basis point cut. Traders now estimate an 89% likelihood of a 25 basis point decrease in November, with 45 basis points of easing factored in for the year. The dollar fell 0.4%against the yen to 149.25 yen , having risen to 149.98 on Monday. Immediate resistance can be seen at 149.83(Daily high), an upside break can trigger rise towards 150.00(Psychological level). On the downside, immediate support is seen at 148.71(38.2 %fib), a break below could take the pair towards 147.42(50 %fib).
Equities Recap
European equities fell the most in almost two weeks, led by technology sectors, after semiconductor equipment company ASML's third-quarter earnings were leaked, revealing a poor annual sales outlook.
UK's benchmark FTSE 100 closed down by 0.52 percent, Germany's Dax ended down by 0.11 percent, France’s CAC finished the day down by 1.05 percent
U.S. equities closed down on Tuesday, following lower world stocks after a disappointing sales estimate from chipmaker ASML weighed on tech companies, while oil continued its decline due to easing supply fears and weaker demand.
Dow Jones closed down by 0.75% percent, S&P 500 closed down by 0.76% percent, Nasdaq settled down by 0.98% percent.
Commodities Recap
Gold rose higher on Tuesday, boosted by falling Treasury rates, while investors awaited additional data that may provide new signals about the Federal Reserve's monetary easing cycle.
Spot gold rose 0.5% to $2,663.83 per ounce at 2:00 p.m. ET (1800 GMT). U.S. gold futures settled 0.5% higher at $2,678.9.
Oil prices fell more than 4% to a near two-week low on Tuesday, owing to a worse demand forecast and a media report that Israel will not bomb Iranian nuclear and oil installations, alleviating concerns about a supply interruption.
Brent crude futures settled down $3.21, or 4.14%, at $74.25 a barrel. West Texas Intermediate futures finished down $3.25, or 4.4%, at $70.58 a barrel.
