FX News Today
European Fixed Income Outlook: 10-year Bund yields are up 1.0 bp at 0.416% in opening trade, versus losses in Treasury and JGB yields, although the US 10-year is up from yesterday’s lows and an early rebound in BTPs is adding pressure on Bunds at the open. Stock market sentiment also started to stabilise during the Asian session, although Chinese markets have already started to erase early gains and while CSI 300 and SSE are still hanging on to gains of 0.42% and 0.51% respectively, the Shenzhen is already back into negative territory. Market sentiment remains cautious then and likely prone to setbacks amid geopolitical tensions and concerns about the impact of tightening financial conditions. Italy’s budget spat with the Commission and Brexit talks will remain in focus. The European data releases today include preliminary PMI readings for the Eurozone, with the manufacturing PMI seen dipping to 53.0 from September’s 53.2, while the services reading is seen falling back to 54.5 from 54.7. The Eurozone also has M3 money supply growth and the UK releases data on mortgage approvals.
Charts of the Day
Main Macro Events Today
- Eurozone manufacturing PMI – Expectations – EMU PMIs are expected to decline to 53.0 from September’s 53.2, while the services reading is seen falling back to 54.5 (median 54.4) from 54.7.
- US New home sales – Expectations – September new home sales are estimated rising 0.5% to 632k, after bouncing 3.5% in August from declines in the previous two months.
- BOC Rate Statement – Expectations – A 25 bp hike to 1.75% is widely expected. Also, Governor Poloz and Senior Deputy Governor Wilkins will hold a press conference from 15:15 GMT. For the whole story read our article.
Support and Resistance Levels
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Andria Pichidi
Market Analyst
HotForex
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