Market Roundup
- US Sept durable goods orders fall 1.2 pct as forecast, Aug revised to -3%.
- US home prices rise faster in August than July (S&P/Case Shiller).
- US Oct consumer confidence index lower than expected in Oct, 97.6 vs forecast 103.
- US House to vote Wednesday on budget deal-Boehner.
- Sterling dips as Q3 GDP data shows UK economy slowing more than expected.
- Bank of Canada looks at alternate inflation measures.
- Catalan parties start independence roadmap, Rajoy vows to block it.
- US budget deal would sell 58 million barrels of oil from emergency reserves beginning in 2018.
- Oil prices touch multi-week lows, as supply worries grow.
- Copper up but technical’s and China demand remain concerns.
- China summons US ambassador over So. China Sea patrol, says US actions irresponsible.
Looking Ahead – Economic Data (GMT)
- 23:50 Japan Retail Sales YY* Sep forecast 0.4%, 0.8%-previous
- 00:30 Australia CPI QQ*Q3 forecast 0.6%, 0.7%-previous
- 00:30 Australia CPI YY*Q3 forecast 1.7%, 1.5%-previous
- 00:30 Australia RBA Weightd Medn CPI QQ* Q3 forecast 0.5%, 0.5%-previous
- 00:30 Australia RBA Weightd Medn CPI YY*Q3 forecast 2.5%, 2.4%-previous
- 00:30 Australia RBA Trimmed Mean CPI QQ* Q3 forecast 0.5%, 0.6%-previous
- 00:30 Australia RBA Trimmed Mean CPI YY* Q3 forecast 2.4%, 2.2%-previous
- 00:30 Australia CPI Index Number* Q3 107.5-previous
Looking Ahead – Events, Other Releases (GMT)
- No Significant Events
Currency SummariesEUR/USD is likely to find support at 1.0990 levels and currently trading at 1.1041 levels. The pair has made session high at 1.1067 and hit lows at 1.1038 levels. The dollar advanced against euro on Tuesday as traders are keenly awaiting the outcome of Federal Reserve’s decision on whether to raise interest rates by year-end amid weak US economic data and slowdown in global economic growth. The US dollar has enjoyed a rebound since late last week, when China revised its interest rates for the sixth time in less a year and the European Central Bank hinted more evidence that, it may continue its bond purchase program. In the US session the US dollar rallied against euro despite weak economic data, the US core durables goods orders slipped to -0.4 against the economists forecast of 0.1 and US Consumer confidence fell to 97.6 against the previous moth reading at 102. 6 reading. Meanwhile, service PMI declined to 54.4 against the forecast of 55.1. The euro EUR slipped 0.2 percent to $1.1038 against the dollar. The dollar also strengthened against currencies of major oil exporters as Brent oil futures fell below $47 a barrel. To the upside, immediate resistance can be seen at 1.1080. To the downside, immediate support level is located at 1.1031 levels.GBP/USD is supported in the range of 1.5260 levels and currently trading at 1.5305 levels. It reached session high at 1.5337 and dropped to session low at 1.5282 levels. Sterling slipped to a two-week low against the dollar on Tuesday after British economic data showed growth slowed more than expected in the third quarter, increasing skeptics that a duration of rapid expansion is coming to an end. Gross domestic product growth declined to 0.5 percent in the three months to September from 0.7 percent in the earlier quarter. Analysts had forecasted figures to be close to 0.6 percent. The growth figures may keep Bank of England away from revising the interest rates, earlier Bank of England has also had forecasted GDP to grow at 0.6 percent. U.S. Federal Reserve central bankers meet on Wednesday, although revising interest rate is ruled out, analysts expect very less impact on the pound/dollar exchange rate. Sterling slipped as low as $1.5280 and last traded at $1.5302, down 0.4 percent on the day. To the upside, immediate resistance can be seen at 1.5325, to the downside, immediate support level is located at 1.5280 levels.USD/JPY is supported around 120.05 levels and currently trading at 120.45 levels. It made session high at 120.46 and hit session lows at 120.14 levels. The U.S. dollar slipped marginally lower against the safe-haven Japanese yen on Tuesday in the wake of a disappointing U.S. data, which showed on Tuesday showed consumer confidence declined this month surrounded by worries over a recent weak job growth and its impact on income. Housing, however, remains the bright spot, with home prices increased in August. That should give a boost household wealth, supporting consumer spending and the broader economy, which has been knocked by a strong dollar, weak global demand, spending cuts in the energy sector and efforts by businesses to reduce an inventory supply. The continued weakness in business spending, coupled with the slowdown in hiring, could make it difficult for the Fed increase its short-term interest rate from near zero in December, as most analysts expect. The U.S. central bank’s policy-setting committee started a two-day meeting on Tuesday. To the upside, immediate resistance can be seen at 120.50. To the downside, immediate support level is located at 120.10 levels. USD/CAD is supported at 1.3180 levels and is trading at 1.3267 levels. It has made session high at 1.3270 and lows at 1.3149 levels. The Canadian dollar edged past C$1.3200 levels against the dollar on Tuesday for the first time in three weeks, as the oil co-related Canadian dollar slipped lower on declining oil prices and equities investors keenly await outcome of U.S. Federal Reserve meeting. Most of the commodity-co-related currencies were weaker on the day against major counterparts, as a gauge of U.S. business spending plans disappointed. The Canadian dollar was trading at C$1.3266 during late hours of US session to the greenback, weaker than Tuesday’s close of C$1. currency’s strongest level of the session was C$1.3155, while its weakest level was C$1.3266. To the upside, immediate resistance can be seen at 1.3280. To the downside, immediate support level is located at 1.350 levels.Equities RecapEuropean Stocks declined on Tuesday as the investors cautiously awaited the outcome Federal Reserve meeting for further leads regarding interest rate decision.UK’s benchmark FTSE 100 closed down by 0.7 percent, the pan-European FTSEurofirst 300 ended the day down by 0.9 percent, Germany’s Dax ended down by 0.9 percent, France’s CAC finished the day down by 0.8 percent.US stocks slipped lower for the second day in row as the market keenly awaited the U.S. rate outlook and after a gauge of U.S. business investment plans fell for a second straight month.Dow Jones closed down by 0.24 percent, S&P 500 ended down by 0.26 percent, Nasdaq finished the day down 0.08 percent.Treasuries RecapU.S. Treasuries prices rose on Tuesday after a drop in domestic durable goods orders in September reinforced the view of a slowdown in U.S. economic growth in the third quarter, supporting investor demand for low-risk government bonds.Benchmark 10-year Treasuries notes rose 11/32 in price to yield 2.018 percent, down 4 basis points from late 30-year bond was up 19/32 in price for a yield of 2.837 percent, down 3 basis points from Monday.Commodities RecapGold edged up on Tuesday as the beginning of a two-day Federal Reserve meeting had investors turning cautious, and moves were muted as buyers awaited clues on the timing of a possible U.S. interest rate hike.Spot gold was up 0.3 percent at $1,165.90 an ounce at 3:13 p.m. EDT (1913 GMT), while U.S. gold futures for December delivery settled down 0.03 percent at $1,165.80 an ounce.Oil prices fell for a third straight session to multi-week lows on Tuesday on the persistent global supply glut ahead of U.S. data expected to show another increase in crude inventories.Brent December futures fell 73 cents to settle at $46.81 a barrel. The settlement and the $46.41 session low were the lowest since Sept. 15.U.S. December crude fell 78 cents to settle at $43.20, lowest settlement since Aug. 27. Tuesday’s intraday low of $42.58 was the weakest since Aug. 28.
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