Market Roundup
•UK Car Registration (YoY) (Sep) 1.0%, -1.3% previous
•UK Car Registration (MoM) (Sep) 225.4%, -42.7% previous
•Italian Car Registration (YoY) (Sep) -10.7%, -13.4% previous
•Italian Car Registration (MoM) (Sep) 76.0%, -44.6% previous
•German Car Registration (MoM) (Sep) 5.8%, -17.2% previous
•German Car Registration (YoY) (Sep) -7.0%, -27.8% previous
•French Car Registration (YoY) (Sep) -11.1%, -24.3% previous
•French Car Registration (MoM) (Sep) 61.7%, -31.8% previous
•UK Public Sector Net Borrowing (Sep) 16.61B, 17.40B previous, 13.02B
•UK Public Sector Net Cash Requirement (Sep) -20.484B, 4.985B previous
Looking Ahead Economic Data(GMT)
•12:30 Canada IPPI (YoY) (Sep) 0.2% previous
•12:30 Canada IPPI (MoM) (Sep) -0.4%, -0.8% previous
•12:30 Canada RMPI (YoY) (Sep) -2.5% previous
•12:30 Canada RMPI (MoM) (Sep) -1.7%, -3.1% previous
•12:55 USD Redbook (YoY) 5.6% previous
•14:00 USD Richmond Manufacturing Index (Oct) -19 forecast, -21 previous
•14:00 USD Richmond Manufacturing Shipments (Oct) -18 previous
•14:00 USD Richmond Services Index (Oct) -1 previous
Looking Ahead events And Other Releases(GMT)
•14:00 ECB President Lagarde Speaks
•15:00 ECB's Lane Speaks
•19:15 BoE Breeden Speaks
•19:15 ECB President Lagarde Speaks
•20:00 ECB's Lane Speaks
• 20:15 ECB McCaul Speaks
Currency Summaries
EUR/USD: The euro eased slightly on Tuesday as U.S. dollar added to recent gains expectations that the Federal Reserve will adopt a cautious approach to easing its policy. Meanwhile, an uncertain U.S. election campaign kept investors on alert. Markets worldwide were focused on the upcoming U.S. presidential elections on Nov. 5, with bets reflecting higher odds for a Donald Trump victory, while also reassessing the scope for further U.S. interest rate cuts .Markets are pricing in an 87% chance of the Fed cutting rates by 25 bps next month, versus a 50% chance a month earlier, when investors saw an equal likelihood of a larger 50-bpcut, the CME FedWatch tool showed.Traders are anticipating another 40 bps of easing overall for the rest of the year. Immediate resistance can be seen at 1.0847(Daily high), an upside break can trigger rise towards 1.0866(38.2%fib).On the downside, immediate support is seen at 1.0820(23.6%fib), a break below could take the pair towards 1.0800(Psychological level).
GBP/USD: Sterling hit a fresh 2-month low against the dollar on Tuesday while investors remained focused on the central banks' easing paths and the possible outcome of the U.S. elections.The U.S. dollar index was just off a 2-1/2-month high on expectations the Federal Reserve will take a measured approach to rate cuts, while the too-close-to-call U.S. election keeps investors on edge. The pound has so far benefited from the Bank of England's cautiously hawkish tone, signalling a more gradual cutting cycle relative to peers, while UK growth was outperforming relative to the euro area.terling was last down 0.05% at $1.2883, after hitting its lowest since mid-August at $1.2967. Immediate resistance can be seen at 1.3054(38.2%fib), an upside break can trigger rise towards 1.3123(50%fib).On the downside, immediate support is seen at 1.2981(23.6%fib), a break below could take the pair towards 1.2928 (Lower BB).
NZD/USD: The New Zealand dollar held near two months low on Tuesday as higher US treasury yields bolstered U.S. dollar across the board. Treasury yields jumped overnight as bets for aggressive U.S. easing further diminished in the months ahead, although there has not been an obvious catalyst.Traders only see a total U.S. easing of 40 basis points for the rest of the year, implying less than two quarter-point moves from the Federal Reserve in November and December. At (GMT 12:25) The kiwi dollar was last trading at $0.6054, after falling 0.7% overnight. Immediate resistance can be seen at 0.6116(38.2%fib), an upside break can trigger rise towards 0.6161 (50%fib).On the downside, immediate support is seen at 0.6059 (23.6%fib), a break below could take the pair towards 0.6000(Psychological level).
USD/JPY: The dollar steadied against the yen as investors reined in expectations for more big U.S. interest rate cuts ahead of the U.S. election.The chances of the U.S. Federal Reserve delivering a quarter-point rate cut at its Nov. 7 meeting have receded to 87% from near certainty a week ago, according to CME's FedWatch tool.A host of data signalling U.S. economic strength have thrown cold water on bets over another outsized cut, following the Fed's decision to cut rates by half a point in September.Adding to the uncertainty was the looming U.S. election, where former Republican president Donald Trump and Democrat Vice President Kamala Harris are caught in a tight battle to win over some of the more competitive states ahead of the Nov. 5 voting day. Immediate resistance can be seen at 150.86 (23.6 %fib), an upside break can trigger rise towards 151.00(Psychological level). On the downside, immediate support is seen at 149.45(Oct 17th low), a break below could take the pair towards 148.67(38.2%fib)
Equities Recap
European stocks slipped on Tuesday, as investors navigated geopolitical and global interest-rate cut uncertainties, while German SAP's strong outlook boosted tech stocks and helped the country's main stock index buck the sluggish trend.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading down at 0.55 percent, Germany's Dax was up by 0.05 percent, France’s CAC finished was down by 0.30 percent
Commodities Recap
Gold climbed on Tuesday, trading not too far away from the record peak it hit in the last session, as concerns over rising geopolitical tensions, U.S. election uncertainties and prospects of central banks lowering interest rates boosted demand.
Spot gold rose 0.5% to $2,732.06 per ounce by 1143 GMT and U.S. gold futures gained 0.3% to $2,746.50
Oil prices rose to $75 a barrel on Tuesday, extending gains from the previous session as investors weighed the impact of China's stimulus measures to boost its economy, and concerns over tension in the Middle East persisted.
Brent crude futures for December delivery rose 68 cents, or 0.92%, to $74.97 at 1033 GMT. U.S. West Texas Intermediate crude futures for November delivery were up 66 cents at $71.22 a barrel on the contract's last day as the front month.
