Market Round Up:
Indian Rupee depreciated by 0.14% against the USD, Greenback Last Week Stronger-than-expected economic data along with hawkish comments from Fed officials along with steep fall in Euro after Catalans voted for independence helped to propel the USD sharply higher before the rally fizzled on reports that North Korea could test missiles this weekend. USD Index (DXY), which tracks the movement of the USD against six major currencies, rose by 0.78% on a week on week basis and is at a level of 93.80.
U.S monthly jobs report showed that employment unexpectedly declined in September, the unemployment rate ticked lower and wage inflation rose more than expected. Non-farm payrolls declined by 33,000 in September, compared to the rise of 169,000 a month earlier that was revised up from the initial increase of 156,000. The data missed the expectation for adding 90,000 jobs.
Uk’s pound was the week’s worst-performing currency, which dropped sharply to lose 2.48% of its value against the USD. It underperformed every major currency despite mixed UK data. The latest PMI reports showed a slight slowdown in manufacturing activity, a contraction in construction-sector activity and acceleration in servicesector activity.
Asian currencies were broadly lower last week against the USD. Australian Dollar depreciated by 0.86%, New Zealand Dollar depreciated by 1.61%, Japanese Yen depreciated by 0.12% against the USD and appreciated by 0.58% against the Euro. South Korean Won appreciated by 0.30%, Philippines Peso depreciated by 0.60%, Indonesian Rupiah depreciated by 0.35%, Indian Rupee depreciated by 0.14% against the USD and appreciated by 0.73% against the Euro, Malaysian Ringgit depreciated by 0.39% and Thai Baht depreciated by 0.38%.
FUNDAMENTAL OF COMMODITIES
Comex Gold prices rebounded from two month lows last Friday iday as fresh concerns over tensions with North Korea pressured the dollar lower and bolstered safe haven demand for the precious metal.
Market For the week will be looking to Wednesday’s Fed minutes for fresh indications on the timing of the next U.S. rate hike. Friday’s U.S. data on inflation and retail sales will also be in focus. Participants will also be eyeing a speech by ECB head Mario Draghi for fresh clues on when the central bank will shift away from its ultra-easy policy.
Crude oil plunged on last Friday, snapping a multiweek bull run amid renewed oversupply concerns, with investor attention shifting to a potential disruption to crude production and refining capacity in the Gulf of Mexico as Tropical Storm Nate bears down on the region
Prices of zinc in shanghai market surged 4 percent to reach its highest in nearly a decade on Monday as China markets returned from a week of holidays to follow London prices higher on supply concerns.