Market Roundup
• US Oct ADP Nonfarm Employment Change 365K ,650K forecast, 749K previous
• US Oct Seevol Cushing Storage Report 2.411M, -2.538M previous
•Canada Sep Trade Balance -3.25B,-2.60B forecast, -2.45B previous
•Canada Sep Imports 48.79B,47.90B forecast,47.38B previous
• Canada Sep Exports 45.54B, 45.25B forecast, 44.93B previous
•US Sep Trade Balance -63.90B, -63.80B, -67.10B previous
•US Imports 240.20B,239.00B previous
•US Exports 176.40B,171.90B previous
•US Markit Oct Composite PMI 56.3, 55.5 forecast, 54. 3 previous
•US Oct Services PMI 56.9, 56.0 forecast, 54.6 previous
•US Oct ISM Non-Manufacturing PMI 56.6, 57.5 forecast, 57.8 previous
•US Oct ISM Non-Manufacturing Business Activity 61.2 ,62.0 forecast, 63.0 previous
•US Oct ISM Non-Manufacturing Employment 50.1 ,51.8 previous
•US Oct ISM Non-Manufacturing Prices 63.9,59.0 previous
•US Crude Oil Inventories -7.998M, 0.890M forecast, 4.320M 4.320M
Looking Ahead Economic Data (GMT)
•00:30 Australia Sep Exports (MoM) -4% previous
•00:30 Australia Sep Imports (MoM) 2% previous
•00:30 Australia Trade Balance 2.643B previous
•00:30 Japan Services PMI 46.9 previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currencies Summaries
EUR/USD: The euro initially weakened, then regained some ground on Wednesday, amid uncertainty over the U.S. presidential election, with results so far much closer than polls had predicted. Investors initially bet that a possible Democratic sweep by Joe Biden could ease political risk and provide a huge boost to fiscal stimulus. The mood quickly changed as incumbent President Donald Trump snatched Florida and ran much closer in other battleground states than polls had predicted. Immediate resistance can be seen at 1.1735 (9DMA), an upside break can trigger rise towards 1.1758 (61.8%fib).On the downside, immediate support is seen at 1.1668 (38.2% fib), a break below could take the pair towards 1.1616 (23.6% fib).
GBP/USD: The British pound was volatile on Wednesday as investors waited for the outcome of the U.S. presidential election, though the currency was weaker for most of the day as traders sold riskier currencies. The tight race and uncertainty over the outcome kept investors on their toes, and they poured money into safe-haven assets such as the U.S. dollar and offloaded riskier currencies such as the British pound. The British currency was down by 0.6% against dollar at $1.2990 in late US trading. Earlier in the day, it fell by more than 1% before recording most of those losses to hit a two-week high of $1.3140. Immediate resistance can be seen at 1.3125 (Higher BB), an upside break can trigger rise towards 1.3181 (61.8%fib).On the downside, immediate support is seen at 1.2980 (38.2% fib), a break below could take the pair towards 1.2859 (23.6%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday after a tight U.S. election that could reduce prospects of a large economic stimulus package, with the currency steadying after it notched an earlier two-week high. The price of oil, one of Canada’s major exports, settled nearly 4% higher at $39.15 a barrel, while the Canadian dollar was trading about unchanged at 1.3125 to the greenback . Earlier, the currency touched its strongest level since Oct. 21 at 1.3095. Immediate resistance can be seen at 1.3173 (38.2%fib), an upside break can trigger rise towards 1.3234 (50%fib).On the downside, immediate support is seen at 1.30232 (23.6%fib), a break below could take the pair towards 1.3045(Lower BB).
USD/JPY: The dollar declined against the Japanese yen Wednesday as early results in the U.S. presidential election showed a very tight race, prompting a wind-back of bets on a victory by Democratic challenger Joe Biden. President Donald Trump, who has so far trailed in polls, has maintained a slim lead in key battleground state of Florida. Investors were increasingly braced for the possibility that the election results may not become clear on Wednesday, with markets hedging against the risk of a contested election or a potentially drawn out process as mail in ballots were counted. Strong resistance can be seen at 104.84 (50% fib), an upside break can trigger rise towards 105.16 (61.8% fib).On the downside, immediate support is seen at 104.08 (23.6%fib), a break below could take the pair towards 103.74 (Lower BB).
Equities Recap
European stocks closed with strong gains on Wednesday as investors unwound bets of a Democratic sweep in the U.S. presidential election as the race proved far closer than polls had predicted.
UK's benchmark FTSE 100 closed up by 1.67 percent, Germany's Dax ended up by 1.96 percent, France’s CAC finished the day up by 2.44 percent.
Technology stocks pushed Wall Street’s major averages higher on Wednesday as the race for the White House went down to the wire, although investors remained worried about the prospect of a contested result.
Dow Jones closed up by 1.64% percent, S&P 500 closed up by 2.31 % percent, Nasdaq settled up by 3.78% percent.
Treasuries Recap
Long-dated U.S. Treasury yields fell from five-month highs on Wednesday after an unexpectedly close U.S. election raised concerns of prolonged uncertainty and cast doubt over a much-needed spending package.
Ten- and 30-year Treasury yields were last down 9-10 basis points on the day, each set for their biggest one-day drop since June.
The benchmark 10-year yield was trading at 0.79% , off session lows but well below five-month highs touched briefly in Asia trade at 0.945%.
Commodities Recap
Gold prices fell on Wednesday as bets that the Democrats will be unable to take control of the U.S. Senate in the razor-edge American election dashed hopes for a larger U.S. coronavirus stimulus.
Spot gold fell 0.7% to $1,896.02 per ounce by 1:52 p.m. EST (1553 GMT). U.S. gold futures settled down 0.7% at $1,896.20.
Oil prices rose nearly 4% on Wednesday after President Donald Trump falsely claimed victory in a tight U.S. election with millions of votes still to be counted and after data showed a large decline in U.S. crude inventories.
West Texas Intermediate ended the session up $1.49, or 4%, at $39.15 a barrel, while Brent crude settled up $1.52, or 3.8%, at $41.23 a barrel.
