Posted at 16 October 2019 / Categories Market Roundups
Market Roundup
• US retail sales fall for first time in seven months
• Sterling rally stalls on reports Brexit talks hit standstill
• US Sep Core Retail Sales (MoM) -0.1%, 0.2% forecast 0.2% previous
• US Sep Retail Control (MoM) 0.0%, 0.3% forecast 0.3% previous
• US Sep Retail Sales (MoM) -0.3%, 0.3% forecast 0.6% previous
• US Sep Retail Sales (YoY) 4.10% , 4.36% previous
• US Sep Retail Sales Ex Gas/Autos (MoM) 0.0%, 0.2% forecast 0.4% previous
• Canada Common CPI (YoY) 1.9%, 1.8% forecast 1.8% previous
• Canada Sep Core CPI (YoY) 1.9%, 1.9% forecast, 1.9% previous
• Canada Sep Core CPI (MoM) 0.0%,-0.1% previous
• Canada Sep CPI (YoY) 1.9%, 2.1% forecast 1.9% previous
• Canada Sep CPI (MoM) -0.4%,-0.2% forecast, -0.1% previous
• Canada Aug Foreign Securities Purchases 4.99B, -1.87B previous
• Canada Aug Foreign Securities Purchases -4.71B, 12.45B previous
• Canada Median CPI (YoY) 2.2%,2.1% forecast ,2.1% previous
• Canada Trimmed CPI (YoY) 2.1%,2.1% forecast ,2.1% previous
• Russia Sep Industrial Production (YoY) 3.0%,3.0% forecast, 2.9% previous
• US Aug Business Inventories (MoM) 0.0%,0.2% forecast, 0.3% previous
• US Oct NAHB Housing Market Index 71 , 68 forecast, 68 previous
• US Oct Thomson Reuters IPSOS PCSI 62.12, 58.94 previous
• Brazil Oct Thomson Reuters IPSOS PCSI 50.11, 47.08 previous
• Brazil Foreign Exchange Flows -6.858B , -3.673B previous
Looking Ahead - Economic Data (GMT)
• 00:30 Australia Sep Employment Change 15.3K forecast, 34.7K previous
• 00:30 Australia Sep Full Employment Change -15.5K previous
• 00:30 Australia Sep Participation Rate 66.2% forecast, 66.2% previous
• 00:30 Australia Sep Unemployment Rate 5.3% forecast, 5.3% previous
Looking Ahead - Events, Other Releases (GMT)
• 22:10 Australia RBA Assist Gov Debelle Speech
• 22:30 United Kingdom BoE Gov Carney Speech
• 18:00 US Chicago Fed President Evans Speech
• 18:00 US FOMC Member Bowman Speech
• 20:00 Australia RBA Governor Lowe Speech
• 20:20 US FOMC Member Williams Speech
Currency Summaries
EUR/USD: The euro gained against the U.S. dollar on Wednesday after dismal U.S. retail sales data painted a gloomy picture of the economy and supported the case for further interest rate cuts by the Federal Reserve. U.S. retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy.The euro was up 0.38 percent at $1.1075 . An index that tracks the dollar versus a basket of six major currencies was down 0.30 percent at 98.01. Immediate resistance can be seen at 1.1075 (50 DMA), an upside break can trigger rise towards 1.1100 (Psychological level).On the downside, immediate support is seen at 1.0984 (11 DMA), a break below could take the pair towards 1.1139 (11 DMA).
GBP/USD: Sterling came off five-month highs against dollar on Wednesday as the European Union and Britain sought to avert a disorderly Brexit before an EU summit on Thursday. Hopes of a breakthrough lifted markets on Tuesday, but investors turned more cautious after looking for a deal during the night that never came. Conflicting reports about the ongoing talks triggered a series of sharp moves on the pound. Reports that Germany might use emergency measures to counter any market panic from a hard Brexit, such as banning bets on falling share prices, also weighed on morale. Immediate resistance can be seen at 1.2877 (Daily high), an upside break can trigger rise towards 1.2900 (Psychological level).On the downside, immediate support is seen at 1.2653 (5 DMA), a break below could take the pair towards 1.2447 (11 DMA).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday after domestic data showed that inflation rose less than expected in September. Canada’s annual inflation rate held steady at 1.9% in September, falling short of the 2.1% rate that analysts had expected, data from Statistics Canada showed. Oil prices rose as investors pinned hopes on a potential Brexit deal between Britain and the European Union and on signals from OPEC and its allies that further supply curbs could be possible. At (1350 GMT), the Canadian dollar was trading 0.1% lower at 1.3215 to the greenback. Immediate resistance can be seen at 1.3265 ( 21 DMA), an upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3181 (Daily low), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The dollar edged lower against the Japanese yen on Wednesday as lingering worries about trade tensions between the United States and China and downbeat economic data weighed on greenback. U.S. retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the Federal Reserve to cut interest rates again later this month. The downbeat report from the Commerce Department on Wednesday came on the heels of data this month showing a moderation in job growth and services sector activity in September. Strong resistance can be seen at 109.04 (200 DMA), an upside break can trigger rise towards 109.34 (Aug 1st high).On the downside, immediate support is seen at 108.47 (5 DMA), a break below could take the pair towards 107.87 (9 DMA).
Equities Recap
European shares slipped on Wednesday, after closing at their highest level in more than a year, as London's last-ditch Brexit talks with Brussels kept investors apprehensive about making brisk decisions.
UK's benchmark FTSE 100 closed down by 0.61 percent, Germany's Dax ended up by 0.32 percent, France’s CAC finished the day up by 0.09 percent.
Wall Street lost ground on Wednesday as weak U.S. economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter earnings reports.
Dow Jones closed down by 0.08 percent, S&P 500 ended up by 0.20 percent, Nasdaq finished the down by 0.30 percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday after data showed that U.S. retail sales fell for the first time in seven months in September, adding to concerns that the U.S. economy is slowing.
Benchmark 10-year yields fell to 1.741%, after rising as high as 1.778% on Tuesday, the highest since September 20.
Commodities Recap
Gold held steady on Wednesday after dropping nearly 1% in the previous session, as European stocks slipped on uncertainties surrounding Britain’s departure from the European Union, while palladium hit a new high on tight supplies.
Spot gold was little changed at $1,481.05 per ounce at 1209 GMT. U.S. gold futures rose 0.1% to $1,484.80.
Oil rose about 1.4% on Wednesday, gaining support due to signs that OPEC and allied producers will continue to curb supplies in December, a weaker U.S. dollar and as traders covered short positions ahead of an industry report on U.S. crude inventories.
Brent crude , the global benchmark, rose 68 cents, or 1.16%, to settle at $59.42 a barrel. U.S. crude gained 55 cents, or 1.04%, to settle at $53.36.