Tuesday 22nd September: European Open Briefing

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Global Markets:

  • Asian stock markets: Shanghai Composite up 0.65 %, Hang Seng gained 0.75 %, ASX rose 0.50 %, Nikkei closed for Holiday
  • Commodities: Gold at $1132.90 (+0.01 %), Silver at $15.18 (-0.25 %), WTI Oil at $46.40 (-1.20 %), Brent Oil at $48.45 (-0.15 %)
  • Rates: US 10 year yield at 2.20, UK 10 year yield at 1.89, German 10 year yield at 0.68

News & Data:

  • Australia House Price Index q/q 4.7 % (exp 2.5 %, prev 1.6 %)
  • PBOC Fixes Yuan Reference Rate At 6.3721 (prev 6.3676)
  • Fed’s Lockhart Favors Interest-Rate Liftoff Later This Year – BBG
  • Asian Stocks Rise With Yen Amid Fed Confusion, While Oil Slides – BBG
  • Currency market braces for RMB weakness – FT

Markets Update:

The US Dollar strengthened yesterday and hawkish comments from FOMC member Lockhart added to the momentum in the NY session. EUR/USD fell below the 1.1212 support level and extended losses towards 1.1180. In Asia, flows were very light and the pair traded in a 1.1180-1.12 range. Key support is now seen at 1.1165 and then 1.1080. GBP/USD followed the Euro lower, but held above the 1.5475 support area and bounced then back to 1.5520.

USD/JPY rallied to 120.60 overnight, but encountered offers in good size around that area. Next resistance seen at 121.00, while intraday support lies at 120.00 and 119.70. Commodity currencies lost the most against the USD yesterday. AUD/USD fell from 0.72 early yesterday to a low of 0.7120 overnight. Major support seen at 0.7080 and a break below would pave the way for another test of the current '15 low at 0.69. Meanwhile, USD/CAD benefited from falling Oil prices and rallied to 1.3255 after trading as low as 1.3011 just on Friday evening.

Upcoming Events:

  • 07:00 BST – Swiss Trade Balance
  • 11:00 BST – UK CBI Industrial Orders
  • 13:55 BST – US Redbook
  • 14:00 BST – US House Price Index
  • 15:00 BST – US Richmond Manufacturing Index
  • 15:00 BST – Euro Zone Consumer Confidence

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