Europe Roundup:
• French Manufacturing PMI (Sep): 44.6, forecast 44.0, 43.9 previous
• German Manufacturing PMI (Sep): 40.6, forecast 40.3, 42.4 previous
• Greek Manufacturing PMI (Sep): 50.3, 52.9 previous
• EU Manufacturing PMI (Sep): 45.0, forecast 44.8, 45.8 previous
• UK Manufacturing PMI (Sep): 51.5, 52.5 previous
•Greek Unemployment Rate (Aug): 9.5%, 9.9% previous
• EU Core CPI (YoY) (Sep): 2.7%, forecast 2.7%, 2.8% previous
• EU Core CPI (MoM) (Sep): 0.1%, 0.3% previous
• EU CPI (YoY) (Sep): 1.8%, forecast 1.8%, 2.2% previous
• EU CPI (MoM) (Sep): -0.1%, 0.1% previous
• EU HICP ex Energy & Food (YoY) (Sep): 2.7%, 2.8% previous
Looking Ahead Economic Data(GMT)
•13:00 Canada Manufacturing PMI (Sep): 49.5 previous
13:45 USD: Manufacturing PMI (Sep): 47.0 forecasts, 47.9 previous
14:00 USD: Construction Spending (MoM) (Aug): 0.2% forecasts, -0.3% previous
14:00 USD: Dallas Fed PCE (Aug): 1.70% previous
14:00 USD: ISM Manufacturing Employment (Sep): 47.0 forecasts, 46.0 previous
14:00 USD: ISM Manufacturing New Orders Index (Sep): 44.6 previous
14:00 USD: ISM Manufacturing PMI (Sep): 47.6 forecasts, 47.2 previous
14:00 USD: ISM Manufacturing Prices (Sep): 53.5 forecasts, 54.0 previous
14:00 USD: JOLTS Job Openings (Aug): 7.640M forecasts, 7.673M previous
Looking Ahead Events And Other Releasaes(GMT)
14:00 GBP: BoE MPC Member Pill Speaks
Currency Forecast
EUR/USD: The euro dipped against dollar on Tuesday after data showed manufacturing activity across the euro zone declined in September. Manufacturing activity across the euro zone declined at its fastest pace this year in September as demand waned sharply despite factories cutting their prices, a survey showed on Tuesday. The downturn was broad-based and Germany, Europe's largest economy, recorded its most pronounced worsening of factory conditions for 12 months.HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 45.0 in September, albeit just ahead of a 44.8 preliminary estimate but further from the 50 mark separating growth from contraction. Immediate resistance is noted at 1.1113 (38.2%fib), with a breakout potentially pushing the pair towards 1.1146 (Daily high). On the downside, immediate support is at 1.1061 (50%fib), a drop below this level could lead the pair towards 1.1014 (61.8%fib).
GBP/USD: Sterling dipped against a firming dollar on Tuesday after survey data confirmed a slowdown in UK factory activity in September, but the British currency was still in sight of recent highs. The S&P Global UK Manufacturing Purchasing Managers' Index slipped to 51.5 in September, unchanged from a preliminary estimate, as British manufacturers worried about the new government's first budget. The pound was down 0.4% at $1.3328 a day after closing out its strongest quarter in two years alongside a broader improvement in risk appetite. It hit a more than two-year high against the greenback just last week. Immediate resistance can be seen at 1.3417(23.6%fib), an upside break can trigger rise towards 1.3449(Higher BB).On the downside, immediate support is seen at 1.3315(38.2%fib), a break below could take the pair towards 1.3274(50%fib).
AUD/USD: The Australian dollar steadied on Tuesday as upbeat Australian retail sales bolstered Australian dollar. Australian retail sales rebounded more than expected in August after a soft July as unusually warm weather brought forward spring spending, a possible sign consumers are dipping into extra income from recent tax cuts.Data from the Australian Bureau of Statistics (ABS) on Tuesday showed retail sales rose 0.7% in August from July when they edged up 0.1%. Analysts had looked for a rise of 0.4%. The Aussie up 0.2% to $0.6928 , having already hit a fresh 19-month top overnight at $0.6942.Immediate resistance can be seen at 0.6945(23.6%fib), an upside break can trigger rise towards 0.6972(Higher BB).On the downside, immediate support is seen at 0.6895(Daily low), a break below could take the pair towards 0.6857(38.2%fib).
USD/JPY: The dollar rose versus the yen on Tuesday as the US currency benefited from Fed Powell's hawkish statements, but investors anticipated further guidance from new Prime Minister Shigeru Ishiba. Shigeru Ishiba, who is expected to be approved as Japan's new prime minister later on Tuesday, is viewed by markets as a monetary policy hawk, despite a recent tone-down of language on the need for policy normalization. He won his party's leadership ballot on Friday in one of the closest races ever, and he is now aiming to unify the party by announcing a snap general election for October 27.The minutes of the Bank of Japan's (BOJ) September meeting revealed on Tuesday that policymakers emphasized the need for caution over near-term interest rate hikes, with little impact on the market.Strong resistance can be seen at 144.73 (38.2%fib), an upside break can trigger rise towards 145.00 (psychological level). On the downside, immediate support is seen at 141.60(23.6%fib), a break below could take the pair towards 140.36(Lower BB).
Equities Recap
European shares were largely steady on Tuesday ahead of key inflation data for the region later in the day.
UK's benchmark FTSE 100 was up by 0.41percent, Germany's Dax was up by 0.53 percent, France’s CAC finished the was up by 0.06 percent.
Commodities Recap
Gold prices rose on Tuesday on safe-haven demand due to Middle East tensions and lower U.S. bond yields, although the metal hovered below recent record highs after the Federal Reserve chief signalled smaller rate cuts in the future.
Spot gold was up 0.6% at $2,649.59 per ounce, as of 1057 GMT, after hitting an all-time high of $2,685.42 last Thursday. U.S. gold futures edged 0.4% higher to $2,671.
Oil prices edged lower on Tuesday as a stronger supply outlook and tepid global demand growth outweighed fears over escalating conflict in the Middle East and its impact on crude exports from the region.
Brent crude futures for December delivery slipped by 49 cents, or 0.7%, to $71.21 a barrel by 1117 GMT. U.S. West Texas Intermediate (WTI)crude futures lost 55 cents, or 0.8%, to $67.62.
