Market Roundup
• US Oct ADP Nonfarm Employment Change 125K, 120K forecast, 93K previous
• US Core PCE Prices (Q3) 2.20%, 2.10% forecast, 1.90%, previous
• US GDP (QoQ) (Q3) 1.9%, 1.6% forecast ,2.0% previous
• US GDP Price Index (QoQ) (Q3) 1.6%, 1.9% forecast, 2.6% previous
• US GDP Sales (Q3) 2.0%,2.4% forecast, 3.0% previous
• US PCE Prices (Q3) 1.5%,2.0% forecast, 2.4% previous
• US Real Consumer Spending (Q3) 2.9%, 4.6% previous
• Canada BoC Interest Rate Decision 1.75% , 1.75% forecast, 1.75% previous
• Belgian GDP (QoQ) (Q3) 0.4%, 0.2% forecast, 0.3% previous
Looking Ahead - Economic Data (GMT)
• 21:45 New Zealand Sep Building Consents (MoM) 2.3%, 0.8% previous
• 23:50 Japan Foreign Bonds Buying 536.1B previous
• 23:50 Japan Foreign Investments in Japanese Stocks 522.3B previous
• 00:00 New Zealand Oct ANZ Business Confidence -54.1 forecast, -53.5 previous
• 00:00 New Zealand Oct NBNZ Own Activity -1.8% previous
• 00:01 UK Oct GfK Consumer Confidence -13, -12 previous
• 00:30 Australia Sep Building Approvals (MoM) 0.1%,-1.1% previous
• 00:30 Australia Export Price Index (QoQ) (Q3) -0.5% forecast, 3.8% previous
• 00:30 Australia Sep Private Sector Credit (MoM) 0.3% forecast, 0.2% previous
• 01:00 China Oct Chinese Composite PMI 53.1 previous
• 01:00 China Oct Manufacturing PMI 49.9 forecast, 49.8 previous
• 01:00 China Oct Non-Manufacturing PMI 53.7, 53.7 previous
Looking Ahead - Events, Other Releases (GMT)
• (Provisional) Japan BoJ Monetary Policy Statement
• 06:30 Japan BoJ Press Conference
Currency Summaries
EUR/USD: The euro gained against the U.S. dollar on Wednesday, after the Federal Reserve cut interest rates for the third time this year, but signaled its rate-cut cycle might be at a pause.In lowering its policy rate by a quarter of a percentage point to a target range of between 1.50% and 1.75%, the U.S.central bank dropped a previous reference in its policy statement that it "will act as appropriate" to sustain the economic expansion language that was considered a sign for future rate cuts. The euro was up 0.28 percent at $1.1142. Immediate resistance can be seen at 1.1164 (Oct 24th high), an upside break can trigger rise towards 1.1200 (200 DMA).On the downside, immediate support is seen at 1.1125 (200 DMA), a break below could take the pair towards 1.1081(Daily Low).
GBP/USD: Sterling strengthened against dollar on Wednesday, after British Prime Minister Boris Johnson won parliamentary approval to hold a general election in December, though moves were limited. Johnson, who has failed to deliver on his “do or die” promise that Britain would leave the EU on Oct. 31, secured the election agreement for mid-December just hours after the EU granted a third delay to Brexit. The pound was up 0.22% at $1.2895, above a low of $1.2810 hit on Tuesday. Immediate resistance can be seen at 1.2908 (Daily High), an upside break can trigger rise towards 1.2955 (Oct 24th high).On the downside, immediate support is seen at 1.2803 (Oct 29th low), a break below could take the pair towards 1.2706 (200 DMA).
USD/CAD: The Canadian dollar weakened to a near two-week low against the greenback on Wednesday as investors raised bets on a Bank of Canada interest rate cut next year after the central bank expressed more concern about global trade uncertainty.The Bank of Canada maintained its key overnight interest rate at 1.75% as expected but cut domestic and global growth forecasts, saying the Canadian economy would be increasingly tested by trade conflicts. The Canadian dollar was trading 0.5% lower at 1.3164 to the greenback. Immediate resistance can be seen at 1.3206 (100 DMA), an upside break can trigger rise towards 1.3224 (50 DMA).On the downside, immediate support is seen at 1.3103 (11 DMA), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday, after the Federal Reserve cut interest rates for the third time this year but signaled its rate-cut cycle might be at a pause. In lowering its policy rate by a quarter of a percentage point to a target range of between 1.50% and 1.75%, the U.S. central bank dropped a previous reference in its policy statement that it “will act as appropriate” to sustain the economic expansion - language that was considered a sign for future rate cuts. At (19:56 GMT), the dollar was trading 0.06 percent lower versus the Japanese yen at 108.81. Strong resistance can be seen at 109.27 (Daily high), an upside break can trigger rise towards 109.54 (Higher BB).On the downside, immediate support is seen at 108.66 (11 DMA), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European shares eked out gains on Wednesday, buoyed by upbeat results from L’Oreal which defied Chinese slowdown fears, although weak earnings from some of the bloc’s biggest lenders such as Deutsche Bank and Santander kept a lid on gains.
UK's benchmark FTSE 100 closed up by 0.34 percent, Germany's Dax ended down by 0.23 percent, France’s CAC finished the day up by 0.45 percent.
Wall Street gained on Wednesday after policy statement by the U.S. Federal Reserve.
Dow Jones closed up by 0.43 percent, S&P 500 ended up by 0.34 percent, Nasdaq finished the up by 0.33 percent.
Treasuries Recap
Treasury yields on Wednesday were lower following data which showed U.S. economic growth slowed in the third quarter, albeit less than expected.
The two-year yield was down 2 basis points to 1.622%, while the 10-year yield was down 2.8 basis points to 1.807%.
Commodities Recap
Gold rose on Wednesday on expectations of an interest rate cut by the U.S. Federal Reserve, but bullion held a tight range as caution set in with investors awaiting clarity on the central bank’s future monetary policy.
Spot gold was up 0.5% to $1,494.16 per ounce at 01:36 p.m. EDT (1736 GMT). U.S. gold futures settled 0.4% higher at $1,496.70 an ounce.
Oil prices fell on Wednesday as worries about a possible delay in resolving the U.S.-China trade war, which has hurt global oil demand, competed with a price-supporting drop in U.S. crude inventories.
Brent crude fell 3 cents, or 0.05%, to $61.56 a barrel by 1232 GMT. U.S. West Texas Intermediate (WTI) crude was down 22 cents, or 0.40%, at $55.32 a barrel.
