Market Roundup
- USTR says China has failed to alter 'unfair, unreasonable' trade practices
- Trump stands by Saudi prince despite journalist Khashoggi's murder
- Trump submits written answers to questions from special counsel
- Britain's May seeks to cut deal on future EU ties in Brussels
- Bank of Canada to review inflation targeting in potential big policy shift
- Bitcoin crashes to lowest this year, losses top 25 pct in a week
Economic Data Ahead
- No major economic data scheduled
Key Events Ahead
- (0300 ET/0800 GMT) Deutsche Bank Board Member Silvie Matherat speaks at a conference on regulation in Frankfurt.
- (0330 ET/0830 GMT) Swedish Central Bank publishes Financial Stability Report 2018:2 in Stockholm.
- (0500 ET/1000 GMT) The Riksbank will hold a press conference on financial stability. Stefan Ingves, Governor of the Riksbank, and Olof Sandstedt, Head of the Financial Stability Department, will address the press conference in Stockholm.
- (0930 ET/1430 GMT) Dutch Finance Minister Wopke Hoekstra meets euro group president Mario Centeno in The Hague to discuss measures to strengthen the European monetary union.
- (1015ET/1515 GMT) Bank of England Governor Mark Carney will speak at The Prince’s Accounting for Sustainability Summit 2018, London.
FX Beat
DXY: The dollar index eased as cautious comments by Federal Reserve policymakers suggested the central bank could slow the pace of monetary policy tightening. The greenback against a basket of currencies trades 0.05 percent down at 96.76, having touched a low of 96.04 on Tuesday, its lowest since Nov 7. FxWirePro's Hourly Dollar Strength Index stood at 7.28 (Neutral) by 0500 GMT.
EUR/USD: The euro steadied after falling from a 2-week peak in the previous session, as investors cautiously await the European Commission’s report. The EC will publish its opinions on the drafts of the 19 countries sharing the euro, including that of Italy’s eurosceptic government. The European currency traded 0.1 percent up at 1.1375, having touched a high of 1.1472 on Tuesday, its highest since Nov. 7. FxWirePro's Hourly Euro Strength Index stood at 37.12 (Slightly Bullish) by 0500 GMT. Investors’ attention will remain on the ECB non-monetary policy meeting, ahead of the U.S. unemployment benefit claims, durable goods and existing home sales. Immediate resistance is located at 1.1420 (November 16 High), a break above targets 1.1499 (November 7 High). On the downside, support is seen at 1.1351 (November 8 Low), a break below could drag it till 1.1317 (November 9 Low).
USD/JPY: The dollar rebounded after plunging to a 3-week low in the previous session, as investors expect the Federal Reserve to raise interest rates by 25 basis points in December, despite paring longer-term rate hike expectations. The major was trading 0.1 percent up at 112.89, having hit a low of 112.30 on Tuesday, its lowest since October 29. FxWirePro's Hourly Yen Strength Index stood at 44.10 (Neutral) by 0400 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. unemployment benefit claims, durable goods and existing home sales. Immediate resistance is located at 113.00 (November 1 High), a break above targets 113.50 (November 6 High). On the downside, support is seen at 112.14 (October 19 Low), a break below could take it lower 111.82 (October 25 Low).
GBP/USD: Sterling consolidated below the 1.2800 handle, as British Prime Minister Theresa May seeks to agree a blueprint of Britain's post-Brexit ties with the European Union. The major traded 0.1 percent up at 1.2792, having hit a low of 1.2723 on Thursday; it’s lowest since October 31. FxWirePro's Hourly Sterling Strength Index stood at 20.65 (Neutral) 0500 GMT. Investors’ attention will remain UK PM Theresa and EC Juncker's meeting, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2853 (October 29 High), a break above could take it near 1.2919 (October 25 High). On the downside, support is seen at 1.2723 (November 14 Low), a break below targets 1.2695 (October 30 Low). Against the euro, the pound was trading 0.05 percent down at 88.92 pence, having hit a low of 89.32 on Monday, it’s lowest since October 31.
AUD/USD: The Australian dollar rebounded from a 1-week low touched earlier in the day, amid hopes U.S. President Donald Trump and Chinese President Xi Jinping would find some sort of truce at a G20 meeting next week. The Aussie trades 0.2 percent up at 0.7230, having hit a high of 0.7337 on Friday; it’s highest since August 29. FxWirePro's Hourly Aussie Strength Index stood at -87.30 (Slightly Bearish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7182 (November 5 Low), a break below targets 0.7154. On the upside, resistance is located at 0.7270 (November 9 High), a break above could take it near 0.7319 (August 17 High).
NZD/USD: The New Zealand dollar retreated from a 1-week low on expectations that U.S. President Donald Trump and Chinese President Xi Jinping will try to ease the growing trade war tensions. The Kiwi trades 0.3 percent up at 0.6807, having touched a high of 0.6883 on Friday, its highest level since late July. FxWirePro's Hourly Kiwi Strength Index was at -4.55 (Neutral) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6839 (November 15 High), a break above could take it near 0.6921 (June 25 High). On the downside, support is seen at 0.6754 (November 14 Low), a break below could drag it below 0.6720 (August 3 Low)
Equities Recap
Asian shares tumbled, as intensifying worries about global economic growth dented investor sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan slumped 0.6 percent.
Tokyo's Nikkei declined 0.4 percent to 21,488.68 points, Australia's S&P/ASX 200 index slipped 0.5 percent to 5,642.80 points and South Korea's KOSPI plunged 0.5 percent to 2,071.65 points.
Shanghai composite index rose 0.3 percent to 2,653.51 points, while CSI300 index traded 0.4 percent up at 3,229.90 points.
Hong Kong’s Hang Seng traded 0.0 percent lower at 25,826.15 points. Taiwan shares shed 0.05 percent to 9,741.52 points.
Commodities Recap
Crude oil prices rebounded from multi-month lows touched in the previous session after a report showed an unexpected decline in U.S. commercial crude inventories. International benchmark Brent crude was trading 1.6 percent up at $63.37 per barrel by 0406 GMT, having hit a low of $61.69 on Tuesday, its lowest since Dec. 6. U.S. West Texas Intermediate was trading 1.6 percent up at $54.20 a barrel, after falling as low as $52.80 on Tuesday, its lowest since the end of October 2017.
Gold prices declined after rising to a 2-week peak in the previous as the U.S. dollar steadied amid heightened risk aversion. Spot gold eased 0.1 percent to $1,220.50 per ounce at 0415 GMT, having hit a high of $1228.64 on Tuesday, its highest since Nov. 7. U.S. gold futures were down 0.1 percent at $1,220.3 per ounce.
Treasuries Recap
The Japanese government bonds remained flat during Asian session as investors remained side-lined in a muted trading session amid lack of economically significant data. The yield on the benchmark 10-year JGB note, which moves inversely to its price, slipped remained tad higher at 0.101 percent, the yield on the long-term 30-year note hovered around 0.844 percent and the yield on short-term 2-year too remained steady at -0.140 percent.
The Australian government bonds traded nearly flat across the curve during Asian session as investors remain sidelined in any big deal amid lack of any major domestic events. However, market participants will remain focused on the upcoming G20 meeting. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, traded flat at 2.694 percent, the yield on the long-term 30-year bond remained steady at 3.229 percent and the yield on the short-term 2-year flat at 2.066 percent.
The Canadian government bond prices were mixed across the yield curve with the two-year down 1 Canadian cent to yield 2.217 percent and the 10-year rising 7 Canadian cents to yield 2.349 percent. The 10-year yield touched its lowest intraday since Sept. 13 at 2.332 percent. The gap between Canada's 10-year yield and its U.S. equivalent widened by 1 basis point to a spread of 71.2 basis points in favor of the U.S. bond.
