Market Brief
The USD was able to claw back some losses in the Asian session, as regional equity markets failed to keep risk appetite afloat. Last week’s USD selloff stems from the belief that the need for safe haven assets has declined, causing participants to search for risk premium. This week, risk appetite will be left in the hands of US bank earnings (JPMorgan, Citibank, GS and BofA) and rhetoric from central banks officials. Market will be intensely listening for any signal that officials are looking to reigning risk correlated trades and limit USD selling. Comments from the Fed continued uninterrupted over the weekend. Former Vice-Chairman Kohn held his normal hawkish note, and highlighted the importance of anchoring inflation expectations, while he rejected the theory that central banks should stay accommodating longer when emerging from a recession.
In Singapore, the MAS announced that it would maintain its current neutral policy stance and zero-appreciation path. There will be no shift in the width of the policy band and current center. Officials stated that the MAS will continue to watch over macro developments, including the risk of stronger global inflationary pressures.
With a light economic calendar today, investors will look ahead to this week's BoJ policy decision. No change in the base rate is universally expected; instead the markets focus will be on comments regarding the JPY relative strength. The minutes from FOMC September meeting are due on Wednesday and will also capture the markets’ attention. These will be closely watched, as markets seek transparency on the Fed's current standing on exit strategies.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 10,016.39 | 1.87 |
| Hang Seng Index | 21,479.37 | -0.09 |
| Shanghai Index | 2,916.32 | 0.15 |
| FTSE 100 Index | 5,161.87 | 0.14 |
| DAX Index | 5,711.88 | -0.08 |
| SMI Index | 6,291.64 | -0.22 |
| S&P future | 1,069.10 | 0.09 |
| World Markets | Current Level | % Change |
| Gold | 1,049.85 | 0.05 |
| Silver | 17.84 | 0.7 |
| VIX | 23.12 | -4.38 |
| Crude wti | 72.49 | 1 |
| USD Index | 76.43 | 0.09 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Industrial production, %y/yAug | -5.8 | -6.5 | MXN / 20.30 |
| RICS housing market survey, price balanceSep | 15 | 10.7 | GBP / 23.01 |
| BCC quarterly economic surveyQ3 | -- | -- | GBP / 23.01 |
| BRC retail sales monitor, total sales, % y/ySep | -- | 2.2 | GBP / 23.01 |
Currency Tech
AUDUSD
R 2: 0.9345
R 1: 0.9130
CURRENT: 0.9027
S 1: 0.8865
S 2: 0.8760
USDCAD
R 2: 1.0827
R 1: 1.0650
CURRENT: 1.0428
S 1: 1.0295
S 2: 1.0125
EURJPY
R 2: 134.20
R 1: 133.86
CURRENT: 132.66
S 1: 130.70
S 2: 129.60
USDMXN
R 2: 13.535
R 1: 13.385
CURRENT: 13.26
S 1: 13.213
S 2: 13.261
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
