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Euro trades flat vs British Pound as markets weigh ECB and BoE policy paths
EUR/GBP trades little changed on Tuesday, remaining under pressure after buyers failed to break above 0.8660, a former multi-month support level that is now acting as resistance. At the time of writing, the cross trades around 0.8578.
Bund yields: Short-covering seen shallow – Societe Generale
Societe Generale’s Kenneth Broux observes Bunds and Bonos retracing from recent yield highs despite a strong upside surprise in Spain’s CPI. The bank warns that if this inflation pattern is replicated across the Euro area, risks are skewed to an upside surprise in core HICP. Bund short-covering and yield dips are seen as potentially shallow, with topside levels at 3.70%/3.74% and support at 3.54%.
United States S&P/Case-Shiller Home Price Indices (YoY) registered at 2.5% above expectations (2.2%) in July
United States S&P/Case-Shiller Home Price Indices (YoY) registered at 2.5% above expectations (2.2%) in July
United States Housing Price Index (MoM) above forecasts (0.1%) in July: Actual (0.3%)
United States Housing Price Index (MoM) above forecasts (0.1%) in July: Actual (0.3%)
United States Redbook Index (YoY): 8.2% (September 25) vs 7.6%
United States Redbook Index (YoY): 8.2% (September 25) vs 7.6%
Canada Gross Domestic Product (MoM) meets expectations (0%) in July
Canada Gross Domestic Product (MoM) meets expectations (0%) in July
ECB's Escrivá: We are still not in a restrictive territory
European Central Bank (ECB) José Luis Escrivá said on Tuesday that they are still in not restrictive territory, as reported by Reuters.
Brazil Unemployment Rate unchanged at 5.3% in August
Brazil Unemployment Rate unchanged at 5.3% in August
GBP/JPY Price Forecast: Sellers retain control near September low
GBP/JPY trades lower on Tuesday as the Japanese Yen (JPY) outperforms its major peers, supported by growing concerns that Japanese authorities could intervene in the currency market again. At the time of writing, the cross trades around 208.20, approaching September’s low near 207.
Singapore Dollar: MAS tightening expectations support resilience – OCBC
OCBC’s Christopher Wong observes that Singapore Dollar (SGD) has held relatively steady despite softer Asian FX, with USD/SGD around 1.2780.
Australian Dollar: RBA hike to support AUD/USD – BBH
Brown Brothers Harriman highlights that the Reserve Bank of Australia delivered a widely expected 25 bps hike to 4.60%, a 15-year high, and kept the door open to further tightening. AUD/USD initially rallied on the hawkish statement but reversed as Governor Michele Bullock signaled less urgency.
Euro: EUR/USD bearish bias converging on support – Societe Generale
Societe Generale’s FX strategy team reports EUR/USD remains under pressure, trading at a three-month low and moving toward the June low at 1.1325. The bank flags support at 1.1325 and 1.1270, with resistance at 1.1410. Widening 2-year UST/EGB spreads and upcoming US PCE and NFP data are seen pulling EUR/USD closer to these vital support levels.
US yields: Real rates climb on Fed credibility – BNY Markets
BNY Markets’ John Velis observes that US real yields across the curve have risen sharply, driven more by expectations of further policy tightening than by inflation fears. Markets see the Fed and other central banks reacting to inflation, pushing long-term yields higher while breakevens stay rangebound. Robust growth, AI-related capex and contained term premia also support higher real rates.