Market Roundupp
• Atlanta Fed leaves U.S. 4th-qtr GDP growth view at 2.5 pct.
• Oil rebounds after prior session's slide; glut worries persist.
• May, Juncker make "very good progress" on Brexit future plan.
• U.S. Republican senators urge vote on new NAFTA deal this year.
• EU moves to discipline Italy over budget, Rome remains defiant.
• China and US accuse each other of hypocrisy as WTO litigation begins.
• Bolsonaro weighs options to reform complex Brazil tax system-source.
• US Oct Durable Goods, -4.4%, -2.5% forecast, 0.7% previous, -0.1% revised.
• US Oct Durables Ex-Transport, 0.1%, 0.4% forecast, 0.0% previous, -0.6% revised.
• US 17 Nov, w/e Initial Jobless Claims, 224k, 215k forecast, 216k previous,221k revised.
• US 17 Nov, w/e Jobless Claims 4-Wk Avg, 218.50k, 215.25k previous, 216.50k revised.
• US 10 Nov, w/e Continued Jobless Claims, 1.668 mln, 1.635 mln forecast, 1.676 mln previous, 1.670 mln revised.
• US Oct Existing Home Sales, 5.22 mln, 5.20 mln forecast, 5.15 mln previous.
• US Oct Exist. Home Sales % Chg, 1.4%, 1.0% forecast, -3.4% previous.
• US Nov U Mich Sentiment Final, 97.5, 98.3 forecast, 98.3 previous .
• US 16 Nov, w/e MBA Mortgage Applications, -0.1%, -3.2% previous.
• US 16 Nov, w/e MBA Purchase Index, 227.7, 220.8 previous.
• CA Sep Wholesale Trade MM, -0.5%, 0.3% forecast, -0.1%.
Looking Ahead - Economic Data (GMT)
• 21 Nov 23:30 Japan Oct CPI, Core Nationwide YY, 1.0% forecast, 1.0% previous
• 21 Nov 23:30 Japan Oct CPI, Overall Nationwide, 1.2% previous
• 21 Nov 23:30 Japan CPI NSA, 101.7 previous
Looking Ahead - Events, Other Releases (GMT)
• 22 Nov 07:00 Swedish Deputy Central Bank Governor Cecilia Skingsley talks about a cashless society in Stockholm.
• 22 Nov 07:00 Riksbank Deputy Governor Cecilia Skingsley speaks at the Centre for Business and Policy Studies in Stockholm
• 22 Nov 09:15 ECB Member of the Supervisory Board Ignazio Angeloni speaks in Frankfurt
• 22 Nov 11:15 ECB Member of the Supervisory Board Ignazio Angeloni participates in a panel discussion in Frankfurt
• 22 Nov 12:00 Spanish Economy Minister Nadia Calvino to hold press conference with OECD General Secretary Angel Gurria in Madrid
• 22 nov 12:30 ECB publishes the minutes of its October policy meeting in Frankfurt
• 22 Nov 14:00 Canadian Finance Minister Bill Morneau to address a business community audience in Ottawa
• 22 Nov 14:45 Bank of Canada Senior Deputy Governor Carolyn A. Wilkins participate in a panel discussion in Ottawa.
• 22 Nov 16:00 BoE Chief Economist Andy Haldane to speak at Glasgow School of Art in Edinburgh
• 22 Nov 17:00 ECB Member of the Executive Board Yves Mersch speaks in Munich
• 22 Nov N/A Bundesbank President Jens Weidmann, Bank of Italy Governor Ignazio Visco and Dutch Central Bank chief Klaas Knot, attend a conference in Florence
Currency Summaries
EUR/USD is likely to find support at 1.1317 levels and currently trading at 1.1385 levels. The pair has made session high at 1.1421 and hit lows at 1.1365 levels. The euro edged lower against the dollar in on Wednesday as euro was weighed down after European Union rejected Rome's fiscal plans for failing to comply with euro zone rules.The European Commission took its first step on Wednesday towards disciplining Italy over its draft budget and said that the government should face action from the EU to reduce its deficit. The euro spiked earlier in the session on a report that Deputy Prime Minister Matteo Salvini may be open to reviewing the fiscal plan for 2019.Salvini later said he was not open to negotiations over Italy's deficit target of 2.4 percent of gross domestic product, though other aspects of the budget could be discussed. The euro has risen in six out of the last seven sessions but remained vulnerable to the political risks emanating from the third-largest economy of the 19-country euro zone.
GBP/USD is supported in the range of 1.2689 levels and currently trading at 1.2778 levels. It reached session high at 1.2813 and dropped to session low at 1.2760 levels. Britain's pound declined sharply against the dollar on Wednesday as Brexit negotiations and political uncertainty in Britain weighed on British currency. All EU leaders are due to meet on Sunday to rubber-stamp the deal, consisting of Britain's withdrawal agreement and an outline of the two sides' new relationship after Britain exits the EU in March. German Chancellor Angela Merkel said she believed a solution would be found by Sunday, despite not knowing how to solve Spanish objections. May faces fierce domestic opposition to her Brexit deal, and the arithmetic is against her in a parliamentary vote she needs to win to get the agreement signed off.Still, rebel moves to force a no-confidence vote in her leadership have fizzled and sterling has pulled away from last week's lows of $1.2725, its weakest since late October. The pound fell 0.10 percent to $1.2776, while slipping 0.3 percent against the euro to 89.23 pence.
USD/CAD is supported at 1.3203 levels and is trading at 1.3246 levels. It has made session high at 1.3295 and lows at 1.3235 levels. The Canadian dollar strengthened against its U.S. counterpart on Wednesday, as a rebound in oil prices and stocks offset downbeat domestic data. Canadian wholesale trade decreased by 0.5 percent in September from August, as weaker sales in the machinery, equipment and supplies subsector led the decline, Statistics Canada said. Analysts surveyed had forecast a 0.3 percent increase. The price of oil, one of Canada's major exports, clawed back some of the previous day's 6 percent plunge, lifted by a report of an unexpected decline in U.S. crude inventories. The U.S. dollar fell against a basket of major currencies as the euro was boosted by hopes for a compromise in the row over Italy's budget. The Canadian dollar was trading 0.5 percent higher at 1.3233 to the greenback. The currency, which touched its weakest level in nearly five months on Tuesday at 1.3318, traded in a range of 1.3271 to 1.3317.
USD/JPY is supported around 112.30 levels and currently trading at 113.05 levels. It peaked to hit session high at 113.58 and made session lows at 113.13 levels. The U.S. dollar strengthened against the yen on Wednesday as investor’s dumped safe haven currencies on escalating worries about slowing global growth and the U.S.-Sino trade war. With sentiment souring and a global equities rout on Tuesday, risk averse traders sought shelter in the liquid dollar, which climbed from a two-week low hit earlier on Tuesday. The dollar index, measuring performance against six major peers, was steady at 96.82 on Wednesday. The index gained 0.65 percent in the previous trading session. With the Federal Reserve widely expected to raise interest rates by 25 basis points in December, analysts think the greenback could trade with a positive bias in the short term, despite lowering their longer-term rate hike expectations. The yen traded at 113.10, with the greenback gaining 0.32 percent. The yen hit its highest level this month on Tuesday at 112.29 per dollar before losing steam as dollar bulls took charge.
Equities Recap
European shares rose on Wednesday in a broad-based bounce that saw the battered tech sector recover following a sharp sell-off on worries over iPhone demand and pricey valuations, and Italian banks rise from two-year lows.
UK's benchmark FTSE 100 closed up at 1.56 percent, the pan-European FTSEurofirst 300 ended the day up by 1.16 percent, Germany's Dax ended up by 1.7 percent, France’s CAC finished the day up by 1.1 percent.
U.S. stocks rose on Wednesday after a brutal two-day selloff, led by a rebound in beaten-down internet, technology and energy shares ahead of the Thanksgiving holiday.
Dow Jones closed at 0.00 percent, S&P 500 ended up by 0.31 percent, Nasdaq finished the day up by 0.92 percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday after data showed that new orders for U.S.-made capital goods were weaker than expected, and as stock markets pared earlier gains.
Benchmark 10-year note yields fell to 3.065 percent, after rising to 3.088 percent overnight.
Commodities Recap
Gold prices rose to a two-week high on Wednesday as the dollar slipped, with uncertainty on the pace of interest rate hikes by the U.S. Federal Reserve also supporting the metal.
Spot gold rose 0.5 percent to $1,226.61 per ounce by 1:45 p.m EST (1845 GMT), having hit its highest since Nov. 7 at $1,230.07 in light trading ahead of the Thanksgiving holiday. U.S. gold futures settled up $6.80, or 0.6 percent, at $1,228.
Oil prices rose about $1 a barrel a barrel on Wednesday, bouncing from the lowest levels in months, after U.S. government data showed strong demand for refined fuel, but concerns remained over rising global crude supply.
Brent crude futures gained 95 cents to settle at $63.48 a barrel, up 1.52 percent. U.S. West Texas Intermediate (WTI) crude futures rose $1.20 to settle at $54.63 a barrel, a 2.25 percent gain.
