UK, Eurozone, and Germany Purchasing Managers Index (PMI) posted better than expected readings on Tuesday. Moving ahead to the North American session, the US will release the latest manufacturing PMI numbers.
UK manufacturing PMI – Actual: 58.2 Forecast: 56.3 Previous: 57.8
UK Services PMI – Actual: 58.6 Forecast: 54.6 Previous: 59.1
German manufacturing PMI - Actual: 57.6 Forecast: 56.9 Previous: 57.8
German Services PMI – Actual: 53.4 Forecast: 51.5 Previous: 52.4
Eurozone manufacturing PMI - Actual: 58.6 Forecast: 57.3 Previous: 58.3
Eurozone Services PMI – Actual: 56.6 Forecast: 53.5 Previous: 54.6
European shares and US stock futures slightly recovered from the early session lows supported by upbeat economic data. On the other hand, the key focus shifts to Wednesday’s FOMC meeting minutes. Market participants will look for fresh clues regarding next year rate hike.
Crude oil prices will likely remain under heavy selling pressure on concerns around fresh Covid-19 curbs in Europe. Moving ahead, the oil investors waiting for the release of API and EIA inventory data.
In the currency market, the US dollar remains in favour as a safe haven currency owing to the high level of uncertainty in financial markets. EURO plunged to its weakest level since June 2020, the currency affected by Eurozone growth concerns and dovish ECB expectations.
Gold price dips to a three-week low as the dollar extends gains. The safe-haven metal may continue to lose ground, as early signs of bearish reversal have emerged on the weekly chart.
On the data front, retail sales in New Zealand dropped 8.1 percent on quarter in the three months to September of 2021, following a 3.3 percent increase in the previous period.
Worldwide, more than 257 million people have been confirmed infected and more than 5.3 million have died. The United States has confirmed over 46.9 million cases and has had more than 765,000 deaths from COVID-19, the highest totals in the world.
EURUSD: The currency pair struggling to find the upside momentum following the release of strong PMI data. The immediate support sitting around 1.1210 and 1.1180. On the other side, a break above 1.1330 will open 1.1370 and 1.1400.
The important levels to watch for today: Support- 1.1235 and 1.1210 Resistance- 1.1290 and 1.1320.
GOLD: Gold prices remain under pressure as risk sentiment improved. At the time of writing, the metal trades below the $1800 psychological level. The next key support area to watch is $1790/85.
The important levels to watch for today: Support- 1790 and 1787 Resistance- 1805 and 1812.
Quote of the day- Volatility is greatest at turning points, diminishing as a new trend becomes established – George Soros.