Global Markets:
- Asian stock markets: Nikkei down 0.70 %, Shanghai Composite fell 1.15 %, Hang Seng declined 2.30 %, ASX dropped 1.30 %
- Commodities: Gold at $1082.90 (+0.18 %), Silver at $14.27 (+0.05 %), WTI Oil at $41.55 (-0.47 %), Brent Oil at $45.25 (+0.18 %)
- Rates: US 10 year yield at 2.32, UK 10 year yield at 2.01, German 10 year yield at 0.62
News & Data
- Japanese Industrial Production (MoM) Sep, F: 1.1% (flash 1.0%)
- Japanese Industrial Production (YoY) Sep, F: -0.8% (flash -0.9%)
- Japanese Capacity Utilisation (MoM) Sep: 1.5% (prev -0.9%)
- Japanese Tertiary Industry Index (MoM) Sep: -0.4% (exp 0.1% prev 0.1%)
- PBoC Fixes Yuan Reference Rate At 6.3655 (prev 6.3628)
- Fed Vice Chair Fischer: Liftoff Decision Depends On Progress On Fed Goals — BBG
- Fischer: US Economy Weathering Headwinds From Stronger Dollar
- Fischer: Dollar Also Responding To Concern About Global Outlook
- Fischer: Oct. FOMC Signalled Dec. Rate Rise May Be Appropriate
Markets Update:
The US Dollar strengthened against most major currencies overnight, as it benefited from the risk-off sentiment and sell-off in equity markets. EUR/USD reached a high of 1.0830 ahead of the Sydney open, but ran out of momentum and fell back to 1.0785 in Asia. Similar price action was seen in GBP/USD, which failed to break through 1.5240 resistance twice yesterday. USD/JPY fell to 122.49 overnight, as the Yen caught a bid. There are reports of bids in decent size in the 122.20/25 area and the next major technical support level is 122.00, which is the pre-NFP high.
AUD/USD is holding relatively well. It had a brief dip sub-0.71 in yesterday's NY session, but recovered from there and traded as high as 0.7140 in Asia. 0.7150 remains a tough resistance level, but a break above it would signal a move towards 0.7220.
Looking at the economic calendar, there are plenty of data releases today, but the main event will be US retail sales at 13:30 GMT. The market is expecting a 0.3 % rise month-on-month, while core retail sales is expected to rise 0.4 %.
Upcoming Events:
- 06:30 GMT – French GDP
- 07:00 GMT – German GDP
- 10:00 GMT – Italian CPI
- 10:00 GMT – Euro Zone GDP
- 10:00 GMT – Euro Zone Trade Balance
- 13:30 GMT – US Retail Sales
- 13:30 GMT – US PPI
- 15:00 GMT – US Business Inventories
- 15:00 GMT – US Michigan Consumer Sentiment
