Investors begin the week in a risk-on mood ahead of a full docket of economic data and the Fed’s two-day policy meeting Tuesday and Wednesday. ISM and PMI data for October will be released early in the week, and Nonfarm Payrolls on Friday. Global equities are mostly in the green, the S&P 500 is opening higher. The dollar is mixed, but generally lower against its peers. US Treasury yields are higher by 2 bps to 1.58%. Oil and gold prices are steady at $84 per barrel and $1,787 per oz., respectively.
Economic data & events:
Monday: US ISM & PMI (Oct)
Tuesday: Eurozone Manufacturing (Oct)
Wednesday: US Factory & Durable Goods orders (Sep), Fed FOMC rate decision, Eurozone Unemployment (Sep)
Thursday: US Initial Jobless Claims, US Trade Balance, Eurozone PPI & PMI, Bank of England policy meeting
Friday: US Change in Nonfarm Payrolls & Unemployment, Canada Jobs data, Eurozone Retail Sales
November 1, 2021
EUR/USD 1.1570 GBP/USD 1.3676 USD/CAD 1.2383 AUD/USD 0.7521 USD/JPY 114.24 USD/CNH 6.3964 USD/ILS 3.1391 USD/MXN 20.7497 USD/CHF 0.9122 USD/INR 74.8737 USD/BRL 5.6600 USD/SGD 1.3495 USD/DKK 6.4299 USD/SEK 8.5551 USD/NOK 8.4081
US stocks are higher on the back of recent positive corporate earnings surprises and expectations for solid ISM and PMI data for October. The FOMC is expected on Wednesday to announce it will begin to taper its $120 billion monthly bond purchases. The US dollar is mixed against its peers, the dollar index is slightly lower.GBP
The UK pound is virtually unchanged from Friday’s close and after a difficult week for the pound which saw it fail to hold above $1.37, where it traded over the last two weeks. Today’s release of UK PMI Manufacturing for October of 57.8 was slightly better than expected and September’s figure. The Bank of England meets on Thursday, and no policy changes are expected.EUR
The euro is up slightly following Friday’s big sell-off, which saw a drop from nearly $1.17 to $1.1535. German retail sales contracted by 2.5% for September, much worse than expectations of a 0.4% increase. There is a full docket of economic releases for the eurozone this week.CAD
The Canadian dollar is steady and remains with the 1.23-1.2425 range in place since mid-October. International trade and employment data for Canada will be released this week.ASIA/PACIFIC
The Japanese yen weakened, taking the USD/JPY back up above 114.00. New Premier Kishida promised to move quickly on a new economic program after a surprisingly quick win in yesterday’s general election.
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