Market Roundup
- U.S. consumer confidence rises unexpectedly to highest since Jan.
- S&P Case-Shiller shows U.S. home prices ease m/m for third month.
- U.S. speaker: House could consider debt limit as well as stopgap spending.
- Delayed rate hike ‘risk management’ says Fed’s Mester -Nikkei.
- INTERVIEW-Icahn urges Fed to get off zero, says ‘treacherous path’ undertaken.
- ECB’s favoured inflation guide hits 7-month low after German price drop. Wildest market swings since 2008 put regulators on edge.
- Bundesbank’s Weidmann says ECB should look beyond oil price volatility.
Looking Ahead – Economic Data (GMT)
- 21:45 New Zealand Building Permits Aug previous- 20.4%
- 23:50 Japan IP Aug m/m estimate- 1.0% v -0.8%
- 23:50 Japan Retail Trade Aug s.a. estimate- 0.5% v 1.5%
- 23:50 Japan Retail Trade Aug y/y estimate- 1.2% v 1.8%
- 01:30 Australia Private Sector Credit estimate- 0.5% v 0.6%
- 01:30 Australia Private Sector Credit y/y estimate- 6.2% v 6.1%
- 01:30 Australia Building Approvals estimate -2.0% v 4.2%
- 01:30 Australia Building Approvals y/y estimate -7.4% v 13.4%
- 02:00 New Zealand M3 Aug y/y previous 9.3%
- 04:00 Japan Vehicle Production Aug y/y -5.9% previous
- 05:00 Japan Housing Starts Aug y/y estimate -7.8% v 7.4%
- 05:00 Japan Construction Orders Aug y/y previous -4.0%
Looking Ahead – Events, Other Releases (GMT)
- No major event scheduled
Currency SummariesEUR/USD is likely to find support at 1.1200 levels and currently trading at 1.1251 levels. The pair has made session high at 1.1268 and hit lows at 1.1228 levels. The US dollar slipped against euro on Tuesday, with volatility in global markets dulling prospects for US interest rates increases. Global stocks slid to lows not seen in more than two years as raw materials prices and emerging markets remained pressured. Commodity prices edged up but held near multi-year lows on concern over an economic slowdown in major consumer China. The euro was up 0.1 percent against the dollar as Spanish consumer prices fell at their fastest rate in seven months in September and regional data out of Germany pointed to inflation stuck around zero. On the data front U.S. consumer confidence rose and was higher than expected in September, according to a private sector report released on Conference Board, said its index of consumer attitudes rose to 103.0, the highest since January, from a downwardly revised 101.3 the month before. Economists had expected a reading of 96.1. To the upside, immediate resistance can be seen at 1.1280. To the downside, immediate support level is located at 1.1209 levels.GBP/USD is supported in the range of 1.5133 levels and currently trading at 1.5151 levels. It reached session high at 1.5204 and dropped to session low at 1.5126 levels. Sterling edged up from a seven-week low against the euro on Tuesday, with traders eyeing a speech by the head of the Bank of England later in the day for clues on when UK interest rates might start to rise. The pound also crept up 0.1 percent versus the dollar to $1.5192, but it was still close to a 4-1/2-month low of $1.5136 touched on Friday, as investors bet the Federal Reserve will raise U.S. interest rates well before the recorded its worst week against the greenback in six months last week after Fed Chair Janet Yellen revived bets that U.S. interest rates would be hiked for the first time in almost a decade before the end of this year. The Bank of England is expected to follow the Fed with a rise in interest rates from their current historic lows. But with UK inflation stuck at zero, the BoE is in no hurry, and investors do not expect an increase until the second half of 2016, making the dollar a more attractive currency. To the upside, immediate resistance can be seen at 1.5200. To the downside, immediate support level is located at 1.5140 levels. USD/JPY is supported around 119.23 levels and currently trading at 119.78 levels. It made session high at 120.15 and made session lows at 119.24 levels. The US Dollar extended its decline against Japanese yen into a second session on Tuesday as traders, concerned about the outlook for US interest rate and global economy, favored Japanese yen as safe heaven bet against the dollar. Worries about slowed global economic growth and uncertainty attached to US interest rate hike have sapped buying interest for safe-haven currencies. Investors anticipate U.S. data later in the week, including government payrolls figures and the ADP jobs report, will drive action in Treasuries. In addition, Federal Reserve members including Chair Janet Yellen, Governor Lael Brainard and Vice Chairman Stanley Fischer are scheduled to speak later in the week. To the upside, immediate resistance can be seen at 120.10. To the downside, immediate support level is located at 119.25 levels. USD/CAD is supported at 1.3400 levels and is trading at 1.3421 levels. It has made session high at 1.3456 and lows at 1.3371 levels. The Canadian dollar was a touch softer against its U.S. counterpart on Tuesday, as the higher price of oil, which rose on evidence that U.S. crude supplies were tightening, helped the currency recoup some of the overnight losses that pushed it to fresh 11-year lows.Overall investor sentiment remained somewhat grim, with global stocks sliding to their lowest in more than two years as commodity prices and emerging markets like China, a major commodities consumer, remained under pressure. The currency’s strongest level of the session was C$1.3385, while its weakest level was C$1.3434, the softest it’s been since June, 2004. On the data front, Canadian producer prices fell slightly more than expected in August after three consecutive months of gains, driven by the lower cost of energy and petroleum products, data from Statistics Canada showed on Tuesday. The 0.3 percent decline exceeded analysts’ forecasts for a decrease of 0.2 percent. Still, the declines were not widespread, with just two of the 21 major commodity groups down on the month. To the upside, immediate resistance can be seen at 1.3456. To the downside, immediate support level is located at 1.3403 levels.Equities RecapEuropean shares partially recovered from an early drop on Tuesday, supported after battered miner Glencore halted a slide in its share price, although top indexes lingered near their lows for 2015.The pan-European FTSEurofirst 300 index ended down 0.4 percent, UK’s benchmark FTSE 100 closed down by 0.6 percent, Germany’s Dax ended down by 0.2 percent, France’s CAC finished the down by 0.1 percent.U.S. stocks moved lower on Tuesday as concerns about the health of the global economy kept investors cautious after more than month of turbulence. Dow Jones down ended up by 0.29 percent, S&P 500 ended up 0.12 percent, Nasdaq finished the day down 0.58 percent.Treasuries RecapU.S. Treasuries prices rose on Tuesday, with benchmark yields touching their lowest levels in a month, as global equity prices fell to a two-year low on concerns about weak worldwide growth.10-year Treasuries were up 10/32 in price to yield 2.057 percent, the lowest since August 26. The 30-year bond rose 7/32 in price to yield 2.859 percent, its lowest in a month.Commodities RecapGold was hovering little changed on Tuesday after a two day losing streak ,as fears over looming US rate hike offset any safe-haven bids from weaker equities.Spot gold was down 0.3 percent at $1,127.80 an ounce, while U.S. gold futures for December delivery settled down $4.90 an ounce at $1,126.80.Oil settled up almost 2 percent on Tuesday as some traders expected U.S. crude inventories to have dropped in the latest week even as others bet on a stockpile build.Brent, the global oil benchmark, settled up 89 cents, or 1.9 percent, at $48.23 a barrel.U.S. crude’s West Texas Intermediate (WTI) benchmark finished up 80 cents, or 1.8 percent, at $45.23.
The material has been provided by InstaForex Company – www.instaforex.com