Posted at 03 October 2022 / Categories Market Roundups
•Swiss Sep CPI (YoY) 3.3%, 3.5% forecast,3.5% previous
•Swiss Sep CPI (MoM) -0.2%, 0.2% forecast, 0.3% previous
•Sweden Sep Manufacturing PMI 49.2, 50.6 previous
•Italian Sep Manufacturing PMI 48.3, 47.5 forecast, 48.0 previous
•French Sep Manufacturing PMI 47.7, 47.8 forecast, 47.8 previous
•German Sep Manufacturing PMI 47.8, 48.3 forecast, 49.1 previous
•UK Sep Manufacturing PMI 48.4, 48.5 forecast, 49.6 previous
•UK Sep Manufacturing PMI 48.4, 48.5 forecast, 47.3 previous
Looking Ahead - Economic Data (GMT)
•13:00 French 12-Month BTF Auction 1.855% previous
•13:00 French 6-Month BTF Auction 1.325% previous
•13:00 French 3-Month BTF Auction 0.681% previous
•13:30 Canada Sep Manufacturing PMI 48.7 previous
•13:45 US Sep Manufacturing PMI 51.8 forecast, 51.5 previous
•14:00 US Aug Construction Spending (MoM) -0.3% forecast, -0.4% previous
•14:00 US ISM Sep Manufacturing Employment 53.0 forecast, 54.2 previous
•14:00 US Sep ISM Manufacturing PMI 52.2 forecast, 52.8 previous
•14:00 US Sep ISM Manufacturing Prices 51.9 forecast, 52.5 previous
•15:00 US Aug Dallas Fed PCE 3.40% previous
•15:30 US 3-Month Bill Auction 2.880% previous
Looking Ahead - Events, Other Releases (GMT)
•13:05 US FOMC Member Bostic Speaks
•18:15 US FOMC Member George Speaks
•19:10 US FOMC Member Williams Speaks
EUR/USD: The euro was marginally lower against dollar Monday, with expectations for another jumbo European Central Bank rate hike this month following a red-hot inflation read-out, heightening worries that the economy will be tipped into a recession.Data on Friday showed that euro zone inflation zoomed past forecasts to a record high of 10.0% in September, above expectations of 9.7%. The euro fell 0.2% to $0.97785, not helped by data that showed manufacturing activity across the euro zone declined further last month.Immediate resistance can be seen at 0.9852 (Daily high), an upside break can trigger rise towards 0.9916 (38.2%fib).On the downside, immediate support is seen at 0.9756 (23.6%fib), a break below could take the pair towards 0.9590(Lower BB).
GBP/USD: The pound edged up on Monday on news Britain would reverse plans to cut the highest rate of income tax, one contentious part of a package of financial measures that last month sent sterling and British government bonds into meltdown. Finance minister Kwasi Kwarteng said the decision to scrap the top rate tax cut had been taken with "some humility and contrition", after his party's lawmakers reacted with alarm to a move that favoured the rich during an economic downturn. The pound gained as much as 1% to $1.128 on initial media reports of the U-turn.Sterling later pared some of its gains and was last up 0.4% at $1.12085. Immediate resistance can be seen at 1.1305(38.2%fib), an upside break can trigger rise towards 1.1442 (30DMA).On the downside, immediate support is seen at 1.1091 (Daily low), a break below could take the pair towards 1.1016 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as fears of aggressive rate hikes by the U.S. Federal Reserve boosted dollar. On investors’ radar are the U.S. non-farm payrolls data due on Friday and a host of manufacturing PMI data for insight into the health of the global economy. On Friday, the Fed's No. 2 official added her full endorsement of the U.S. central bank's higher-for-longer game plan for interest rates to curb inflation.Last month, the Fed raised its policy rate by 75 basis points, its third straight increase of that size, and signalled more large hikes to come this year. Immediate resistance can be seen at 0.9903(23.6% fib), an upside break can trigger rise towards 0.9955(Higher BB).On the downside, immediate support is seen at 0.9842(Daily low), a break below could take the pair towards 0.9802(38.2%fib).
USD/JPY: The dollar steadied against the Japanese yen on Monday after finance minister Shunichi Suzuki said Japan stood ready intervene in Forex market. Monday's fall came as finance minister Shunichi Suzuki said Japan stood ready for "decisive" steps in the foreign exchange market if excessive yen moves persisted .The yen has been weakening due to Japan's policy of keeping interest rates pinned down at a time when they are rising elsewhere. After much speculation, authorities last month intervened in markets, spending a record of 2.8 trillion yen ($19.7 billion) to prop up the currency.Strong resistance can be seen at 145.09 (23.6%fib), an upside break can trigger rise towards 145.65(Higher BB). On the downside, immediate support is seen at 144.61 (5DMA), a break below could take the pair towards 143.47(38.2%fib).
European shares slid on Monday, led by technology and financial stocks, as investors fretted about the economic health of the continent due to rampant inflation and subsequent aggressive interest rate hikes to tame it.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.41 percent, Germany's Dax was down by 0.15 percent, France’s CAC was up by 0.30 percent.
Gold prices edged higher on Monday, helped by a pullback in the dollar and U.S. Treasury yields, although the gains were capped on fears of aggressive rate hikes by the U.S. Federal Reserve.
Spot gold was up 0.2% at $1,663.70 per ounce, as of 1043 GMT. U.S. gold futures were steady at $1,672.
Oil prices jumped by more than $3 on Monday as OPEC+ considers reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic.
Brent crude futures rebounded $3.37, or 4%, to $88.51 a barrel by 1100 GMT. U.S. West Texas Intermediate crude was up 4.1%, or $3.29, at $82.78.