America’s roundup: Dollar slips ahead of FED rate decision,Wall street ends mixed, Gold rises, Oil plummets 6% as Saudi minister says supplies fully restored-september 18th,2019
Source: FxWire Pro - Media Round Ups / 18 Sep 2019 02:20:54 Europe/London
• Fed expected to cut rates on Wednesday
• Saudi to recover oil supplies sooner than expected - sources
• Canada Jul Manufacturing Sales (MoM) -1.3%, -0.3% forecast, -1.4% previous
• US Redbook (YoY) 5.4%.6.4% previous
• US Redbook (MoM) -0.9%,-0.4% previous
• Russia PPI (MoM) -0.6%,-2.7% previous
• Russia PPI (YoY) 0.3%,1.1% previous
• US Capacity Aug Utilization Rate 77.9%, 77.6% forecast, 77.5% previous
• US Aug Industrial Production (MoM) 0.6%,0.2% forecast,-0.1% previous
• US Sep NAHB Housing Market Index 68, 66 forecast, 67 previous
• New Zealand GlobalDairyTrade Price Index 2.0% , -0.4% -0.4%
Looking Ahead - Economic Data (GMT)
• 22:45 New Zealand Current Account (QoQ) (Q2) -1.12B forecast, 0.68B previous
• 22:45 New Zealand Current Account % of GDP (Q2) -3.40% forecast, -3.60% previous
• 23:50 Japan Aug Exports (YoY) -10.9% forecast, -1.6% previous
• 23:50 Japan Aug Imports (YoY) -11.2% forecast, -1.2% previous
• 23:50 Japan Aug Trade Balance -355.9B forecast ,-250.7B previous
• 00:30 Australia MI Leading Index (MoM) 0.1% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
EUR/USD: The euro strenthed against the greenback on Tuesday, as an expected U.S. interest rate cut from the Federal Reserve at upcoming meeting made market anxious. Investors are expecting the Fed to announce a 25 basis point rate cut ahead of Fed’s two-day policy meeting on Wednesday . The euro was up 0.43 percent at $1.0996. An index that tracks the dollar versus a basket of six major currencies was down 0.30 at 98.30. Immediate resistance can be seen at 1.1000 (Psychological level), an upside break can trigger rise towards 1.1130 (Higher Bollinger Band).On the downside, immediate support is seen at 1.0989 (Sep 17th low),a break below could take the pair towards 1.0900 (lower BB).
GBP/USD: Sterling strengthened against dollar on Tuesday, as investors assessed the chances Prime Minister Boris Johnson can strike a Brexit deal with the European Union before Oct. 31. Analysts said investors were continuing to reverse their bets against the currency as they worried about being caught on the wrong side should the pound further extend a rally it started last week Johnson is required by a law passed this month to ask the EU for a three-month delay to Brexit if a deal is not approved by Oct. 19, but British media reported that his team are looking at ways to circumvent it. Johnson said on Monday Brexit would happen on Oct. 31, with or without a deal. Immediate resistance can be seen at 1.2562 (Higher BB), an upside break can trigger rise towards 1.2600 (Psychological level).On the downside, immediate support is seen at 1.2495 (5 DMA), a break below could take the pair towards 1.2389 (10 DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, with the currency recovering from a near two-week low hit after weaker-than-expected domestic factory data as the greenback broadly declined. Canadian factory sales slid by 1.3% in July from June, far exceeding the 0.3 percent decrease expected by analysts, as plant maintenance shutdowns weighed on sales in the primary metal and motor vehicle industries, Statistics Canada said. Canada's inflation report for August is due on Wednesday and could help guide expectations for the central bank's interest rate outlook. The Canadian dollar was trading little changed at 1.3243 to the greenback .The currency touched its weakest intraday level since Sept. 4 at 1.3300.Immediate resistance can be seen at 1.3252 (21 DMA), an upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3240 (5 DMA), a break below could take the pair towards 1.3218 (11 DMA).
USD/JPY: The U.S. dollar was little against the yen on Tuesday, as investors awaited U.S. Federal Reserve’s two-day monetary policy meeting. The Federal Open Market Committee (FOMC) is widely expected to cut interest rates at its two-day meeting starting later in the day. It would be the central bank’s second such cut after lowering rates in July for the first time since the financial crisis.The expected decision from the Fed could put pressure on the Bank of Japan to ease policy at a meeting due on Thursday. Strong resistance can be seen at 108.49 (Higher BB), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 108.16 (9 DMA), a break below could take the pair towards 106 .82 (21 DMA).
European stocks closed marginally lower on Tuesday as energy shares gave up a chunk of Monday’s big gains and banks lost steam ahead of a likely interest rate cut from the U.S. Federal Reserve.
The UK's benchmark FTSE 100 closed down by 0.01 percent, Germany's Dax ended up by 0.74 percent, and France’s CAC finished the day up by 0.24 percent.
U.S. stocks were modestly lower on Tuesday as investors moved to the sidelines ahead of the Federal Reserve’s two-day policy meeting, while the impact of weekend attacks on Saudi Arabia’s biggest oil refinery faded.
Dow Jones closed up by 0.13 percent, S&P 500 ended up 0.26 percent, Nasdaq finished the day up by 0.40 percent.
U.S. Treasury yields fell on Tuesday, ahead of an expected interest rate cut by the Federal Reserve at the conclusion of its two-day policy meeting on Wednesday.
Benchmark 10-year notes were last up 5/32 in price to yield 1.828%, down from 1.843% on Monday.
Gold rose on Tuesday, propped up by expectations for an interest rate cut by the U.S. Federal Reserve, but traded within a relatively narrow range as investors awaited further clarity on the central bank’s stance on future monetary policy.
Spot gold was trading 0.5% higher at $1,505.07 per ounce at 1:38 p.m. EDT (1738 GMT). U.S. gold futures settled up 0.1% at $1,513.40 an ounce.
Oil prices tumbled about 6% on Tuesday after Saudi Arabia’s energy minister said the country has managed to restore oil supplies to where they stood before weekend attacks on its facilities shut 5% of global oil output.
Brent crude futures sank $4.47, or 6.5%, to settle at $64.55 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $3.56, or 5.7%, to settle at $59.34 a barrel.© FxWire Pro 2019. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.