September 30th Morning Update

The US$ is lower, oil is up, equity markets are up while US yields are down. Democrats and Republicans have reached an agreement on a stopgap bill to keep the government funded through early December, vote on Thursday to avert a shutdown. US$ taking a breather after recent strong move. GDP and jobless claims out this morning while Powell testimony continue. In other news, North Korea’s Kim Jong-un offers to restore inter-Korean hotline. COVID, YouTube bans all anti-vaccine misinformation. Melbourne cases hit record despite two months of lockdown. United Airlines ready to fire workers defying vaccine mandate. In currency markets, China Evergrande offshore investors face ‘large losses’ after second payment miss while power crunch continues. The coal lobby warns woes could last until winter. Market seems to have shrugged off the news for now. BOJ Kuroda vows to keep easy policy on weak consumption, inflation

Today, September 30th is Canada’s first National Day of Truth and Reconciliation. Oil prices did little to influence Loonie. Market looking at US economic numbers more precisely GDP and Jobless Claims. Support moves to 1.2660, while resistance now at 1.2770.

EUR/USD bounces off new 2021 lows near 1.1590. EUR/USD remains under heavy pressure despite mild bullish attempt. Market awaiting this morning’s CPI for a clearer a picture. Support resets to 1.1570, while resistance holds at 1.1675.

While the EURGBP had a straight move upward since the test of .8500 a potential BoE rate increase in early 2022 could limit the move higher in EURGBP. Support moves to .8580 (1.1655) while resistance resets to .8660 (1.1547).

A pause in the USD demand helped GBP/USD strengthen. Fed’s policy tightening could cap any move higher for the pair making the 1.3400 barrier vulnerable. British soldiers to start driving fuel tankers soon to replenish empty pumps. Support moves to 1.3410 and while resistance resets at 1.3515.