America’s Roundup: Dollar eases from 10-month high ,Wall Street ends higher, Gold slides, Oil eases 1%, reversing rally, on profit taking, interest rate worries-September 29th ,2023

Posted at 28 September 2023 / Categories Market Roundups

Market Roundup

•US Real Consumer Spending (Q2)0.8%, 1.7% forecast,4.2% previous

•US GDP Sales (Q2)2.1%,2.2% forecast,4.2% previous

•US PCE Prices (Q2)2.5%,2.5%   forecast,4.1% previous

•US GDP (QoQ) (Q2)2.1%,2.1% forecast,2.0% previous

•US GDP Price Index (QoQ) (Q2)   1.7%,2.0% forecast,4.1% previous

•US Core PCE Prices (Q2)3.70%,3.70% forecast,4.90% previous

•US Corporate Profits (QoQ) (Q2)-4.1%,1.6% forecast,-5.9% previous

•US Initial Jobless Claims 204K,215K forecast,201K previous

•US Continuing Jobless Claims 1,670K.1,675K forecast,1,662K previous

•US Jobless Claims 4-Week Avg. 211.00K, 217.00K previous

•US Aug Pending Home Sales (MoM)  -7.1%,-0.8% forecast,0.9% previous

•US Aug Pending Home Sales Index 71.8   ,77.6 previous

•US Natural Gas Storage 90B,88B forecast, 64B previous

•US KC Fed Composite Index   -8,0 previous

•US KC Fed Manufacturing Index -13, 12 previous

Looking Ahead Economic Data(GMT)

• 01:30  Australia Aug Private Sector Credit (MoM)  0.3%   forecast, 0.3% previous

• 01:30  Australia Aug Housing Credit  0.3% previous

• 02:00  New Zeeland Aug  M3 Money Supply  403.4B previous

•05:00   Japan Aug Construction Orders (YoY)  8.7% previous

•05:00   Japan Sep Household Confidence  36.2 forecast, 36.2 previous

•05:00   Japan Aug Housing Starts (YoY) -8.9% forecast,-6.7% previous

Looking Ahead Events And Other Release(GMT)

•No events Ahead

Currency Summaries

EUR/USD: The euro edged higher on Thursday as dollar retreated as Investors cautious ahead of a key inflation reading due out   on Friday.Data on Thursday showed the U.S. economy maintained fairly strong growth in the second quarter at an unrevised 2.1% annualized rate. A second report showed initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 204,000 for the week ended Sept. 23. Economists had forecast 215,000 claims for the latest week. Contracts to buy U.S. existing homes also fell more than expected in August, tumbling by the most in nearly a year as high mortgage rates erode affordability. Personal consumption data due on Friday is the next focus for further clues on U.S. inflation. Immediate resistance can be seen at 1.0572(5DMA), an upside break can trigger rise towards 1.0619(38.2%fib).On the downside, immediate support is seen at  1.0503(23.6%fib), a break below could take the pair towards 1.0491(Lower BB).

GBP/USD: The British pound  snapped a six-session losing streak on Thursday as the dollar’s relentless rally paused, but was still on track for a near 4% drop this month as markets trimmed peak rate expectations for the Bank of England. The pound hit a six-month trough of $1.2111 on Wednesday following a 3.8% drop so far this month. It was on track for its biggest monthly fall against the dollar in a year, or since former British Prime Minister Liz Truss’s economic agenda sent UK assets reeling.The pound was last up 0.5% against the greenback at $1.2201, having fallen more than 2% in the previous six trading days, its biggest fall in that timeframe since July. Immediate resistance can be seen at 1.2239(38.2%fib), an upside break can trigger rise towards 1.2266(11DMA).On the downside, immediate support is seen at 1.2119 (23.6%fib), a break below could take the pair towards 1.2067(Lower BB). 

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday as investors took stock of recent market moves ahead of a possible U.S. government shutdown, with the currency steadying a day after hitting a two-week low. The Democratic-led U.S. Senate forged ahead with a bipartisan stopgap funding bill aimed at averting a fourth partial government shutdown in a decade, while the House of Republicans prepared to vote on partisan Republican spending bills that have no chance of becoming law.The price of oil, one of Canada’s major exports, was down 2.2% at $91.6 a barrel, giving back some recent gains. The loonie was trading nearly unchanged at 1.35 to the greenback, or 74.07 U.S. cents, after moving in a range of 1.3471 to 1.3516. Immediate resistance can be seen at 1.3523 (23.6%fib), an upside break can trigger rise towards 1.3541 (Sep 257th high).On the downside, immediate support is seen at 1.3540 (5DMA), a break below could take the pair towards 1.3450 (38.2%fib).

USD/JPY: The dollar eased slightly against the yen on Thursday investors stayed on guard for potential intervention in the yen as it holds near 11-month lows against the U.S. currency.The Japanese currency has also been weakening sharply, but its softening has been tempered by fears that authorities might intervene to support the currency.The 150 yen per dollar zone is seen by markets as potentially spurring intervention from Japanese authorities it did last year. Finance Minister Shunichi Suzuki said on Thursday that Japan would not rule out any options if there was any excessive volatility in currency moves, warning against speculative yen moves amid the currency's fall. Strong resistance can be seen at 149.79(23.6%fib) an upside break can trigger rise towards 150.09 (Higher BB).On the downside, immediate support is seen 149.04(5DMA), a break below could take the pair towards 148.18 (38.2%fib).

Equities Recap

European shares snapped a five-day losing streak to edge higher on Thursday after a jump in mining stocks, while German inflation rose less than expected in September, boosting investor sentiment.

UK's benchmark FTSE 100 closed up by   0.11 percent, Germany's Dax ended up by 0.70 percent, France’s CAC finished the day up by 0. 63 percent.

Wall Street's main indexes ended higher on Thursday as investors assessed the latest batch of economic data and as a surge in Treasury yields stalled ahead of a key inflation report..

Dow Jones closed up by 0.35 percent, S&P 500 ended up by 0.59 percent, Nasdaq finished the day up by 0.83 percent.

Commodities Recap

Gold plumbed a six-month low on Thursday as bets for higher-for-longer U.S. interest rates diminished non-yielding bullion’s appeal, while traders shifted focus to inflation readings this week for clues on the Federal Reserve’s strategy.

Spot gold fell 0.7% to $1,861.59 per ounce by 2:06 p.m. EDT (1806 GMT), its lowest level since March. U.S. gold futures settled 0.7% lower at $1,878.60.

Oil futures eased about 1% on Thursday, as traders took profits after prices soared to 10-month highs, and some worried that high interest rates may weigh on oil demand.

Brent futures for November delivery fell $1.17 or 1.2%, to settle at $95.38 a barrel. Brent November futures expire on Friday.

Brent December futures fell about 1.3% to settle at $93.10 per barrel.U.S. West Texas Intermediate crude (WTI) fell $1.97, or 2.1%, to settle at $91.71 per barrel.

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