Market Roundup
• Canada Building Permits (MoM) (Aug) -1.2%, -0.7% forecast,-1.1% previous
• US 3-Month Bill Auction 3.845%, 3.850% previous
• US 6-Month Bill Auction 3.685%, 3.695% previous
Looking Ahead Economic Data(GMT)
• 01:30 China CPI (MoM) (Sep) 0.2% forecast,0.0% previous
• 01:30 China CPI (YoY) (Sep)-0.2%, -0.4% previous
• 01:30 China PPI (YoY) (Sep)-2.3%, -2.9% previous
• 04:30 Japan Capacity Utilization (MoM) (Aug) -1.1% previous
•04:30 Japan Industrial Production (MoM) (Aug) -1.2% forecast,1.2% previous
Looking Ahead Events And Other Releases(GMT)
• N0 Evens Ahead
Currency Summaries
EUR/USD : The euro edged slightly lower on Tuesday as political uncertainty in France and mixed economic signals from Germany weighed on sentiment. Sébastien Lecornu was reappointed as France’s prime minister on Friday, just four days after resigning, amid the country’s most severe political crisis in decades. Successive minority governments have struggled to pass deficit-cutting budgets through a deeply divided parliament split among three ideological blocs. Lecornu now faces a no-confidence vote, likely on Thursday.In Germany, investor confidence improved less than expected in October, as weak current economic conditions and delays in the long-anticipated recovery continued to dampen optimism. The ZEW Economic Sentiment Index rose to 39.3 from 37.3 in September, falling short of analysts’ expectations of 41.0. Immediate resistance can be seen at 1.16630(Oct 13th high), an upside break can trigger rise towards 1.1696(38.2%fib).On the downside, immediate support is seen at 1.1525(50%fib), a break below could take the pair towards 1.1506(Lower BB)
GBP/USD: The pound slipped lower on Tuesday after official data indicated a slowdown in wage growth, a key metric closely monitored by the Bank of England to determine the timing of future rate cuts.Britain’s labor market showed signs of stabilization, with pay growth rising at the slowest pace since 2022 and employment slightly increasing, according to data released Tuesday. The Office for National Statistics reported that average weekly earnings excluding bonuses rose 4.7% in the June–August period compared with a year earlier, marginally below the 4.8% increase recorded in the three months to July and marking the slowest growth since May 2022.Investors had been fully pricing in the BoE’s next benchmark rate cut in March, a month earlier than before the jobs data suggested that inflationary pressures in the economy might be easing. Immediate resistance can be seen at 1.3368(Daily high), an upside break can trigger rise towards 1.3442(38.2%fib).On the downside, immediate support is seen at 1.3260(50%fib), a break below could take the pair towards 1.3226(Lower BB).
USD/CAD: The Canadian dollar steadied against the U.S. dollar on Tuesday, recovering from a six-month low as expectations of additional Federal Reserve rate cuts offset pressure from lower oil prices.U.S. crude futures fell 1.3% to $58.70 a barrel, after the International Energy Agency warned of a substantial 2026 supply glut, compounded by ongoing U.S.-China trade tensions. Oil remains a key export for Canada.Domestic economic data had minimal impact on markets, with building permits declining 1.2% in August from July, marking the lowest level since June 2024. Canadian bond yields fell across the curve, following moves in U.S. Treasuries, as the Canadian bond market reopened after the Thanksgiving Day holiday. The loonie was nearly unchanged at 1.4034 per U.S. dollar after touching its weakest intraday level since April 10 at 1.4079.Immediate resistance can be seen at 1.4082 (23.6%fib), an upside break can trigger rise towards 1.4121 (Psychological level).On the downside, immediate support is seen at 1.3938 (38.2%fib), a break below could take the pair towards 1.3934(SMA 20).
USD/JPY: The U.S. dollar edged lower on Tuesday as markets turn risk off on fragile US-China relations. The U.S. and China on Tuesday imposed additional port fees on ocean shipping companies transporting goods ranging from holiday toys to crude oil. Beijing also announced countermeasures targeting five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, and said it was examining how its domestic shipping sector might be affected by a U.S. Section 301 investigation into alleged unfair trade practices.These tit-for-tat actions dampened the optimism that followed U.S. President Donald Trump’s more conciliatory remarks over the weekend, which had briefly lifted market sentiment earlier in the week. U.S. Treasury Secretary Scott Bessent said on Monday that President Donald Trump remained committed to meeting Chinese President Xi Jinping in South Korea this month. Washington and Beijing seek to defuse tensions over tariff threats and export controls. Immediate resistance can be seen at 153.42(23.6%fib) an upside break can trigger rise towards 154.00 (Psychological level) .On the downside, immediate support is seen at 150.96 (38.2%fib) a break below could take the pair towards 149.42 (SMA 20).
Equities Recap
European stocks posted their strongest weekly gain in five months on Friday, led by healthcare and mining sectors, as growing expectations of a Federal Reserve rate cut lifted market sentiment.
UK's benchmark FTSE 100 closed up by 0.10 percent, Germany's Dax ended down by 0.62 percent, France’s CAC finished the day down by 0.18percent.
Wall Street ended mixed on Tuesday, while gold hit a record high as investors balanced positive economic outlooks from the IMF and Fed Chair Jerome Powell against renewed U.S.-China trade tensions.
Dow Jones closed up by 0.44% percent, S&P 500 closed down by 0.16% percent, Nasdaq settled down by 0.76% percent.
Commoditise Recap
Gold surged to a new record above $4,100 on Tuesday, driven by expectations of a U.S. Federal Reserve rate cut this month and a safe-haven demand amid renewed U.S.-China trade tensions.
Spot gold rose 0.9% to $4,145.85 per ounce as of 1:50 p.m. ET (1750 GMT), after hitting a record high of $4,179.48 earlier in the session.U.S. gold futures for December delivery gained 0.7% to settle at $4,163.40.
Oil prices dropped 1.5% on Tuesday, pressured by the International Energy Agency’s warning of a significant 2026 supply glut and ongoing U.S.-China trade tensions.
Brent crude futures fell 93 cents, or 1.5%, to settle at $62.39 a barrel. U.S. West Texas Intermediate crude was down 1.3%, or 79 cents, at $58.70. Both contracts were at a five-month low.
