Market Roundup
- China blames "excuses" for lack of agreement at APEC, as U.S. ties sour again
- China's economic opening-up to help offset U.S. trade frictions-cbank adviser
- British govt relents to lawmakers' pressure with pledge to publish Brexit forecasts
- Northern Irish DUP fail to back UK PM May in finance bill votes
- BOJ's Kuroda rules out early end of negative rate policy
- Japan finmin Aso says to compile second extra budget for FY2018
- Australia's central bank flags chance of further sharp fall in unemployment
- Italy says not changing budget plans as euro partners fret
- Trump likely to give U.S. troops authority to protect immigration agents
Economic Data Ahead
- (0130 ET/0630 GMT) France Q3 ILO Unemployment Rate, 9.2% f'cast, 9.1% prev
- (0200 ET/0700 GMT) Germany Oct Producer Prices (mm), 0.3% f'cast, 0.5% prev
- (0200 ET/0700 GMT) Germany Oct Producer Prices (yy), 3.3% f'cast, 3.2% prev
- (0600 ET/1100 GMT) Great Britain Nov CBI Trends - Orders, -7 f'cast, -6 prev
Key Events Ahead
- (0400 ET/0900 GMT) Germany's Finance Minister and Vice Chancellor Olaf Scholz holds a speech as the parliament deliberates its 2019 budgetary law in Berlin.
- (0400 ET/0900 GMT) ECB Policymaker Ewald Nowotny speaks at a news conference on the publication of the Austrian central bank's semi-annual Financial Stability Report in Vienna.
- (0415 ET/0915 GMT) ECB Chair of the Supervisory Board Daniele Nouy delivers introductory statement at the ECON Hearing at the European Parliament in Brussels, Belgium.
- (0830 ET/1330 GMT) Federal Reserve Bank of Philadelphia issues Non manufacturing Business Outlook Survey for November.
- (1000 ET/1500 GMT) Bundesbank President Jens Weidmann speaks at a conference on the future of the insurance and pension funds in Frankfurt, Germany.
- (1130 ET/1630 GMT) ECB Chair of the Supervisory Board Daniele Nouy participates in a conversation with Guntram B. Wolff, director at Bruegel, in Brussels, Belgium.
- (1715 ET/2215 GMT) Bank of Canada Deputy Governor Timothy Lane participates in a panel at Internet Society Canada Chapter, Toronto.
FX Beat
DXY: The dollar index rebounded from a near 2-week low, amid worries about global growth and worsening trade relations between the United States and China. The greenback against a basket of currencies trades 0.05 percent up at 96.21, having touched a low of 96.12 on Monday, its lowest since Nov 8. FxWirePro's Hourly Dollar Strength Index stood at -87.34 (Slightly Bearish) by 0400 GMT.
EUR/USD: The euro declined after rising to a near 2-week peak in the previous session, amid concerns about negotiations between Brussels and Rome on Italy's budget plans. The European currency traded 0.1 percent down at 1.1447, having touched a high of 1.1464, its highest since Nov. 7. FxWirePro's Hourly Euro Strength Index stood at 92.47 (Slightly Bullish) by 0400 GMT. Investors’ attention will remain on a series of data from the Eurozone economies, ahead of the U.S. building permits and housing starts. Immediate resistance is located at 1.1499 (November 7 High), a break above targets 1.1534 (October 19 High). On the downside, support is seen at 1.1391 (November 6 Low), a break below could drag it till 1.1351 (November 8 Low).
USD/JPY: The dollar plunged to a 3-week low, weighed down by cautious comments about the U.S. economy from Federal Reserve officials suggesting the central bank may be nearing the end of its tightening cycle. The major was trading 0.05 percent down at 112.51, having hit a low of 112.39, its lowest since October 30. FxWirePro's Hourly Yen Strength Index stood at -87.34 (Slightly Bearish) by 0400 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. building permits and housing starts. 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 rose, extending gains for the third straight session, as British Prime Minister Theresa May defended her deal in a speech to the CBI business lobby group’s annual conference, stating that Britain would to try to list out the details of its outline future relationship with the European Union. The major traded 0.1 percent up at 1.2857, having hit a low of 1.2723 on Thursday; it’s lowest since October 31. FxWirePro's Hourly Sterling Strength Index stood at -122.06 (Highly Bearish) 0400 GMT. Investors’ attention will remain BoE Governor Carney's speech and UK inflation report hearing, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2919 (October 25 High), a break above could take it near 1.2994 (October 25 High). On the downside, support is seen at 1.2776 (October 26 Low), a break below targets 1.2723 (November 14 Low). Against the euro, the pound was trading 0.05 percent up at 89.05 pence, having hit a low of 89.32 on Monday, it’s lowest since October 31.
AUD/USD: The Australian dollar eased after the minutes of Reserve Bank of Australia showed RBA Governor Philip Lowe singled out global trade protectionism as a significant risk to world growth. The Aussie trades 0.3 percent down at 0.7274, having hit a high of 0.7337 on Friday; it’s highest since August 29. FxWirePro's Hourly Aussie Strength Index stood at -40.16 (Neutral) by 0400 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7247 (November 8 Low), a break below targets 0.7205 (November 6 Low). On the upside, resistance is located at 0.7319 (August 17 High), a break above could take it near 0.7362 (August 28 High).
NZD/USD: The New Zealand dollar steadied amid an escalation in the U.S.-China tariff war. The Kiwi trades 0.1 percent up at 0.6842, having touched a high of 0.6883 on Friday, its highest level since late July. FxWirePro's Hourly Kiwi Strength Index was at 59.60 (Bullish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6921 (June 25 High), a break above could take it near 0.6976 (June 15 High). On the downside, support is seen at 0.6787 (November 15 Low), a break below could drag it below 0.6720 (August 3 Low)
Equities Recap
Asian shares eased, weighed down losses in technology stocks, while the dollar consolidated near recent lows after Fed Vice Chair Richard Clarida and Dallas Fed President Robert Kaplan raised concerns over a potential global slowdown.
MSCI's broadest index of Asia-Pacific shares outside Japan slumped 0.9 percent.
Tokyo's Nikkei declined 1.1 percent to 21,574.34 points, Australia's S&P/ASX 200 index slipped 0.4 percent to 5,671.80 points and South Korea's KOSPI plunged 0.9 percent to 2,081.02 points.
Shanghai composite index fell 1.8 percent to 2,655.83 points, while CSI300 index traded 1.9 percent up at 3,230.82 points.
Hong Kong’s Hang Seng traded 2.0 percent lower at 25,846.04 points. Taiwan shares shed 0.9 percent to 9,743.99 points.
Commodities Recap
Crude oil prices declined, giving back previous session gains, as a deteriorating economic outlook and a rise in U.S. production outweighed expected supply cuts by the OPEC. International benchmark Brent crude was trading 0.6 percent down at $66.51 per barrel by 0418 GMT, having hit a high of $68.35 on Friday, its highest since Nov. 13. U.S. West Texas Intermediate was trading 0.5 percent down at $57.05 a barrel, after falling as low as $55.30 on Monday, its lowest since Nov. 14.
Gold prices eased as the dollar steadied ahead of the U.S. Thanksgiving holiday on Thursday. Spot gold was trading 0.2 percent lower at $1,221.55 per ounce by 0434 GMT, having hit a high of $1225.18 on Friday, its highest since Nov. 8. U.S. gold futures settled up $2.30, or 0.2 percent, at $1,225.30.
Treasuries Recap
The Australian government bonds slumped across the curve during the Asian session after the Reserve Bank of Australia (RBA) flagged that there could be a more pronounced decline in the unemployment rate in the near-term. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 4 basis points to 2.707 percent, the yield on the long-term 30-year bond jumped 4 basis points to 3.233 percent and the yield on short-term 2-year up 2-1/2 basis points to 2.076 percent.
The New Zealand government bonds rose a tad, sending yields about 1 basis point lower across the curve.
The Canadian government bond yields were lower on the day, with the yield on the 10-year at 2.353 percent.
