Global Markets:
- Asian stock markets: Nikkei up 0.15 %, Shanghai Composite rose 0.28 %, Hang Seng gained 0.48 %, ASX 200 rose 0.1 %
- Commodities: Gold at $1277.85 (-0.54 %), Silver at $16.62 (-0.33 %), WTI Oil at $51.52 (-0.27 %), Brent Oil at $56.56 (-0.41 %)
- Rates: US 10-year yield at 2.35, UK 10-year yield at 1.36, German 10-year yield at 0.46
News & Data:
- (JPY) Tankan Manufacturing Index 22 vs 18 expected
- (JPY) Tankan Non-Manufacturing Index 23 vs 24 expected
- (CNY) Manufacturing PMI 52.4 vs 51.5 expected
- (CNY) Non- Manufacturing PMI 55.5 vs 53.4 previous
- (CNY) Caixin Manufacturing PMI 51.0 vs 51.5 expected
- (EUR) German Retail Sales m/m -0.4 % vs 0.5% expected
- (GBP) Current Account -23.2 B vs -15.8 B expected
- (GBP) Final GDP q/q 0.3 % vs 0.3 % expected
- (EUR) CPI Flash Estimate y/y 1.5 % vs 1.6 % expected
- (EUR) Core CPI Flash Estimate y/y 1.1 % vs 1.2 % expected
- (CAD) GDP m/m 0.0 % vs 0.1 % expected
- (USD) Chicago PMI 65.2 vs 58.6 expected
- (USD) Revised UoM Consumer Sentiment 95.1 vs 95.3 expected
- Oil prices lower after strong third quarter as Sept. OPEC output rises- RTRS
CFTC Positioning Data:
- EUR long 88K vs 62K long last week. Longs increased by 26K
- GBP long 5K vs 10K short last week. Position moves to long from short. Last time it was positve was October 2015
- JPY short 71K vs 51K short last week. Shorts increased by 20K.
- CHF short 1.8K vs 1.5K short last week. Shorts increased by 0.3K
- CAD long 75K vs 59K long. Longs increased by 16K.
- AUD long 77k vs 72k last week. Longs increase by 5K.
- NZD long 8K vs 7K long last week. Longs increased by 1K.
Markets Update:
Asia-Pacific equity markets opened higher on Monday in spite of few major markets in the region being shut for holidays, the optimism was backed by surprisingly strong economic news out of China and Japan in addition to the broadly upbeat sentiment and gains in the U.S. dollar. However, the euro took a knock in Asia on Monday as investors kept an anxious eye on an independence vote in Spain’s Catalonia
USDJPY is currently seen Trading at 112.83 as the Yen was marginally weak against the US Dollar earlier on Monday. Propelled by the weaker Yen, Japan’s Nikkei Stock Average Nikkei 225 was up 0.15%. The gains in Asian Markets were in line with analysts’ bullish expectations for the fourth quarter amid ample market liquidity.
EURUSD had a very active session early on Monday with Euro dropping to lows around 1.1780 against the USD in the NZ session before retracing to around 1.1815 only to drop again over 50 pips in value once Asian liquidity came in, currently the pair is seen trading around 1.1775. The dollar index, which tracks the greenback against a basket of six major currencies, added 0.3 percent and is currently valued at 93.33.
AUDUSD is currently seen Trading at 0.7824 down from its session highs of around 0.7850. Notably, Australia’s main index S&P/ASX 200 was up earlier jumping 1.1% percent helping support export stocks as the Australian Dollar was weak against the US Dollar. Likewise, The New Zealand Dollar dropped from its session highs of 0.7225 and is currently seen trading closer to it’s opening price of around 0.7200 against the US Dollar.
Upcoming Events:
- 07:15 GMT – (EUR) Retail Sales y/y
- 07:15 GMT – (EUR) Spanish Manufacturing PMI
- 08:30 GMT – (GBP) Manufacturing PMI
- 09:00 GMT – (EUR) Unemployment Rate
- 14:00 GMT – (USD) ISM Manufacturing PMI
- 18:00 GMT – (USD) FOMC Member Kaplan Speaks
The Week Ahead:
Tuesday, October 3rd
- All Day – (EUR) German Bank Holiday
- Tentative – (NZD) GDT Price Index
- 00:30 GMT – (AUD) Building Approvals m/m
- 03:30 GMT – (AUD) Cash Rate
- 03:30 GMT – (AUD) RBA Rate Statement
- 07:00 GMT – (EUR) Spanish Unemployment Change
- 08:30 GMT – (GBP) Construction PMI
- 12:30 GMT – (USD) FOMC Member Powell Speaks
Wednesday, October 4th
- All Day – (CNY) Chinese Bank Holiday
- 08:30 GMT – (GBP) Services PMI
- 12:15 GMT – (USD) ADP Non-Farm Employment Change
- 14:00 GMT – (USD) ISM Non-Manufacturing PMI
- 14:30 GMT – (USD) Crude Oil Inventories
- 17:15 GMT – (EUR) ECB President Draghi Speaks
- 19:15 GMT – (USD) Fed Chair Yellen Speaks
Thursday, October 5th
- All Day – (CNY) Chinese Bank Holiday
- 00:30 GMT – (AUD) Retail Sales m/m
- 00:30 GMT – (AUD) Trade Balance
- 11:30 GMT – (EUR) ECB Monetary Policy Meeting Accounts
- 12:30 GMT – (CAD) Trade Balance
- 12:30 GMT – (USD) Unemployment Claims
- 12:30 GMT – (USD) Trade Balance
- 13:10 GMT – (USD) FOMC Member Powell Speaks
- 14:00 GMT – (USD) FOMC Member Harker Speaks
- 14:00 GMT – (USD) Factory Orders m/m
- 16:00 GMT – (GBP) MPC Member McCafferty Speaks
- 17:30 GMT – (GBP) MPC Member Haldane Speaks
Friday, October 6th
- All Day – (CNY) Chinese Bank Holiday
- 07:30 GMT – (GBP) Halifax HPI m/m
- 12:00 GMT – (GBP) MPC Member Haldane Speaks
- 12:30 GMT – (CAD) Employment Change
- 12:30 GMT – (CAD) Unemployment Rate
- 12:30 GMT – (USD) Average Hourly Earnings m/m
- 12:30 GMT – (USD) Non-Farm Employment Change
- 12:30 GMT – (USD) Unemployment Rate
- 14:00 GMT – (CAD) Ivey PMI
- 16:15 GMT – (USD) FOMC Member Dudley Speaks
- 16:45 GMT – (USD) FOMC Member Kaplan Speaks
