Economic Data Alert
FX Update
The yen sank to a 3-month low on Monday as investors figured the loss of a parliamentary majority for Japan’s ruling coalition in weekend elections would slow interest rate rises, while the U.S. dollar headed for its biggest monthly gain since April 2022.
China’s yuan weakened on Monday to a more than two-month low against the dollar, underpinned by signs of strength in the U.S. economy and rising bets that Donald Trump would win a second term as president.
The Chinese currency, which has lost about 1.6% against the dollar in October, looks set to snap three straight months of appreciation, weighed down by geopolitical uncertainty and threats of bigger trade tariffs on Chinese goods if Trump wins.
Crude Oil:
Oil prices tumbled 6%, or more than $4 a barrel, after Saturday’s retaliatory strike by Israel against Iran’s military bypassed oil and nuclear facilities, not disrupting energy supplies. Last week, the benchmarks gained 4% in volatile trade on uncertainty over the looming U.S. election and the extent of Israel’s expected response to the Iranian missile attack of Oct. 1.
On Saturday, scores of Israeli jets completed three waves of strikes before dawn against missile factories and other sites near Tehran and in western Iran, the latest exchange between the Middle Eastern rivals. The attacks were more tailored toward military targets, easing fears that Israel might attack Iran’s nuclear facilities or oil infrastructure.
Gold:
Gold’s record rally took a breather, as U.S. Treasury yields and dollar gained the upper hand, while investors awaited a series of U.S. economic data due this week for cues on the Federal Reserve’s interest rate outlook.
Copper:
Copper prices retreated as Chinese data suggesting poor demand prospects added to disappointment with economic stimulus measures from the top consumer, weighing on sentiment.
Benchmark copper CMCU3 on the London Metal Exchange (LME) was down 0.5% at $9,551 a metric ton. It has mostly traded in a narrow $400 range over the past couple of weeks.
China’s industrial profits plunged in September, registering the steepest monthly decline of the year, owing to factors including weak demand and a sharp decline in producer prices..
Prices action (MCX)
Gold 78566 (+0.04%), Silver 97424 (+0.30%), Copper 838.10(+0.17%) Crude Oil 5710 (-5.46%) Natural gas 193.30 (-10.01%)
Major Economic Data and Event scheduled today
Japan
At 5.00am- Unemployment Rate. Data is foreseen at 2.5% from previous 2.5%.
Above data could have a positive impact on the Yen.
Eurozone
At 12.30pm- German GfK Consumer Climate. Data is foreseen at -20.40 from previous -21.2.
Above data could have a neutral impact on the Euro.
UK
At 3.00pm
M4 Money Supply m/m. Data is foreseen at 0.1% from previous -0.1%.
Mortgage Approvals. Data is foreseen at 65K from previous 65K.
Net Lending to Individuals m/m. Data is foreseen at4.1B from previous 4.2B.
Tentative – Monetary Policy Report Hearings.
Above data could have a volatile impact on the Pound.
US
At 6.00pm-
Goods Trade Balance. Data is foreseen at -96.1B from previous -94.3B.
Prelim Wholesale Inventories m/m. Data is foreseen at 0.2% from previous 0.1%.
At 7.30pm
CB Consumer Confidence. Data is foreseen at 99.2 from previous 98.7.
JOLTS Job Openings. Data is foreseen at 7.02M from previous 8.04M.
Above data could have a volatile impact on the dollar.
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Also Read:Â Forex Focus: Oil Prices Dip Amid Easing Geopolitical Tension , Big Week: Japan Elections, BOJ Rates, UK Budget, US Economic Data
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