Market Roundup
• Brazil Foreign Exchange Flows -3.396B, -0.802B previous
• Platinum jumps 3% to near 4-month peak
• Silver hits highest level since April 2017
• Looking Ahead - Economic Data (GMT)
• 23:50 Japan Foreign Bonds Buying, 499.7B previous
• 23:50 Japan Foreign Investments in Japanese Stocks, -359.6B previous
• 01:00 New Zealand Aug ANZ Business Confidence -44.3 previous
• 01:00 New Zealand NBNZ Own Activity 5.0%
• 01:30 Australia Plant/Machinery Capital Expenditure (QoQ) (Q2) -0.5%
• 01:30 Australia Building Capital Expenditure (MoM) (Q2) -2.8
• 01:30 Australia Private New Capital Expenditure (QoQ) (Q2) 0.5%,-1.7 previous
Looking Ahead - Events, Other Releases (GMT)
• 01:30 Japan BoJ Board Member Suzuki Speaks
Currency Summaries
EUR/USD: The euro edged higher against the U.S. dollar on Wednesday, but the moves were small and range-bound as a deepening inversion of the U.S. yield curve stoked investor anxiety about a recession just days before U.S. and Chinese retaliatory tariffs on each other’s imports are set to go into effect. Sentiment in wider markets remained fragile due to a sharper inversion in the U.S. Treasury yield curve, signaling a possible recession, and the lack of clarity on the U.S.-China trade front, kept interest for safe havens intact.The euro was up 0.05 percent at $1.1082. The dollar index, which measures the U.S. currency against a basket of six currencies, rose 0.20% to 98.20. Immediate resistance can be seen at 1.1097 (5 DMA), an upside break can trigger rise towards 1.1129 (21 DMA).On the downside, immediate support is seen at 1.1073 (Daily low), a break below could take the pair towards 1.1035 (Lower Bollinger Bands).
GBP/USD:Sterling edged lower against greenback on Wednesday, as concerns rose that the United Kingdom may be headed for a disruptive no-deal Brexit after Prime Minister Boris Johnson moved to restrict parliamentary time before Oct. 31.Johnson said on Wednesday he would schedule a Queen’s Speech for Oct. 14 in order to launch new legislation. He denied he was seeking to prevent parliament from obstructing his Brexit plans.The move limits the amount of parliamentary time available to lawmakers who want to prevent him taking the country out of the EU without an exit deal.The pound, already trading lower on the day, extended its drop to hit $1.2147, a six-day low, and was last down 0.7% on the day. Immediate resistance can be seen at 1.2294 (Higher Bollinger Band), an upside break can trigger rise towards 1.2383 (27th Aug High).On the downside, immediate support is seen at 1.2201 (23.6% retracement level), a break below could take the pair towards 1.2146 (21 DMA).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday, extending its pullback from a near two-week high the previous day, as investors mulled the prospect of a surprise interest rate cut next week from the Bank of Canada. The Bank of Canada has stayed on the sidelines in recent months even as other central banks, such as the Federal Reserve, have eased interest rates. Gross domestic product data, due on Friday, is expected to confirm that Canada's economy rebounded after a slowdown around the turn of the year. Analysts project second-quarter growth of3%.The Canadian dollar was last trading 0.1% lower at 1.3304 to the greenback. Immediate resistance can be seen at 1.3317 (Daily high), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3261 (21 DMA), a break below could take the pair towards 1.3222 (27th Aug low).
USD/JPY: The dollar weakened against the Japanese yen on Wednesday, as nagging fears the Sino-U.S. trade war will drag on increased demand for safe haven assets. The greenback started on a shaky footing this week, as safe-haven Treasury yields bounced from multi-year lows after U.S. President Donald Trump softened his tone against China and predicted the two countries would be able to reach a trade deal.But optimism on trade negotiations wilted as China’s foreign ministry dismissed U.S. suggestions that there had been contact between the two sides, and said it hopes Washington can stop its wrong actions and create conditions for talks..The dollar was 0.11 percent lower versus the Japanese yen at 106.00. Strong resistance can be seen at 106.11(11 DMA), an upside break can trigger rise towards 106.36 (21 DMA).On the downside, immediate support is seen at 105.60 (Daily low), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European shares inched lower on Wednesday as worries of a looming global recession kept investors from making bold bets, while a dive in the pound over fears of a disorderly Brexit pushed British stocks higher.
The UK's benchmark FTSE 100 closed up by 0.35 percent, Germany's Dax ended down by 0.25 percent, and France’s CAC finished the down by 0.34 percent.
U.S. stocks edged higher on Wednesday, extending a strong start to the quarter as rising hopes of a trade deal with Beijing boosted investor sentiment.
Dow Jones closed up by 1.00 percent, S&P 500 ended up 0.65 percent, Nasdaq finished the day up by 0.38 percent.
Treasuries Recap
U.S. Treasury debt yields fell on Wednesday, with 30-year yields setting all-time lows, as fears about a recession and trade tensions between China and the United States stoked unrelenting demand for low-risk government debt.
In late Wednesday trading, the yields on 30-year government bonds were 1.939%, down 2.2 basis points from late Tuesday. They hit an all-time low of 1.905% earlier Wednesday.
Commodities Recap
Gold eased on Wednesday as the U.S. dollar strengthened and as investors locked in profit following a more than 1% jump in the last session, but uncertainty over the U.S.-China trade dispute and the global economy kept safe-haven bullion near a multi-year peak.
Spot gold fell 0.1% to $1,541.20 per ounce at 1:36 p.m. EDT (1736 GMT). On Monday, it touched $1,554.56, its highest since April 2013.U.S. gold futures settled down 0.2% at $1,549.10 per ounce.
Oil prices rose nearly 2% on Wednesday after a larger-than-expected decline in U.S. crude stockpiles helped ease worries about weakening oil demand caused by the trade war between Washington and Beijing.
Brent crude futures settled 98 cents, or 1.7%, higher at $60.49 a barrel. West Texas Intermediate crude ended at $55.78 a barrel, rising 85 cents, or 1.6%.
