Market Roundup
- U.S. Republicans debut tax bill, Trump seeks first win
- Trump taps Fed centrist Powell to lead U.S. central bank
- U.S. job growth seen surging after storm-related disruptions – Rtrs preview
- U.S. bomber drills aggravate N.Korea ahead of Trump's Asia visit
- Spanish judge orders custody for Catalan leaders pending trial
- New Zealand government may fast-track RBNZ reforms ahead of law changes - Rtrs analysis
- China Oct Caixin Services PMI 51.2 vs 50.6
- China c. bank liquidity injection eases pressure on money rates
- China c. bank lends 404 bln yuan via MLF, rates unchanged
- Australian Sept Retail Sales m/m, 0.0% vs -0.6%, revised -0.5%, forecast 0.4%
- Australian Q3 Retail Trade, 0.1% vs 1.5%, forecast 0.0%
- Pressure mounts on Merkel over migrant policy in future coalition
- Germany's Weidmann praises Macron's reforms, says Europe will benefit - Les Echos
- U.S.-based stock funds take in most cash since May -Lipper
- Foreign CB US debt holdings +$973 mln to $3.366 trln Nov 1 week
- Treasuries +$143 mln to $3.039 trln, agencies +$721 mln to +$262.5 bln
Economic Data Ahead
- (0530 ET/0930 GMT) Great Britain Oct Markit/CIPS Serv PMI forecast 53.3, last 53.6
Key Events Ahead
- (0400 ET/0800 GMT) Norges Bank's Nicolaisen and Matsen to speak at Trondheim
- (0630 ET/1030 GMT) Norges Bank's Olsen speaks at Bergen
- (1215 ET/1615 GMT) Fed's Kashkari participates in a Q&A session - Washington
- (1615 ET/2015 GMT) ECB's Coeure speaks at IMF Conference - Washington
FX Beat
DXY: The dollar index eased after President Donald Trump's nominated Federal Reserve Governor Jerome Powell to be the next Fed chair, with investors now awaiting the U.S. jobs data. The greenback against a basket of currencies traded 0.1 percent down at 94.65, having touched a low of 94.41 the day before, its lowest since Oct. 26. FxWirePro's Hourly Dollar Strength Index stood at -99.37 (Highly Bearish) by 0500 GMT.
EUR/USD: The euro steadied after rising to a 1-week high in the previous session, as the bulls took a breather ahead of the U.S. payroll data that could provide further insight on the strength of the labour market. The European currency traded flat at 1.1660, having touched a high of 1.1687 on Thursday, its highest since Oct. 26. FxWirePro's Hourly Euro Strength Index stood at 54.71 (Bullish) by 0400 GMT. Investors’ attention will remain on U.S. nonfarm payroll and employment report, amid a lack of economic data from the Eurozone economies. Immediate resistance is located at 1.1706 (50.0% retracement of 1.1837 and 1.1674), a break above targets 1.1744 (21-DMA). On the downside, support is seen at 1.1636 (5-DMA), a break below could drag it lower 1.1593 (Oct. 30 Low).
USD/JPY: The dollar declined, extending previous session losses, as uncertainty over the U.S. tax bill continued to weigh on the greenback and U.S. Treasury yields. The major was trading 0.1 percent down at 113.99, having hit a low of 112.95 on Tuesday, its lowest since Oct. 20. FxWirePro's Hourly Yen Strength Index stood at -61.61 (Bearish) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. nonfarm payroll and employment report for further momentum. Immediate resistance is located at 114.30, a break above targets 114.60. On the downside, support is seen at 113.72 (10-DMA), a break below could take it near 113.05 (21-DMA).
GBP/USD: Sterling steadied after falling to a near 1-month low in the previous session after the Bank of England hiked rates for the first time in over a decade and stated that it sees only gradual rises ahead. The major traded 0.1 percent up at 1.3072, having hit a low of 1.3042 the day before, its lowest since Oct. 6. FxWirePro's Hourly Sterling Strength Index stood at -146.30 (Highly Bearish) by 0400 GMT. Investors’ focus will remain on UK Markit Services PMI, ahead of U.S. fundamental drivers. Immediate resistance is located at 1.3100, a break above could take it near 1.3184. On the downside, support is seen at 1.3027, a break below targets 1.2968. Against the euro, the pound was trading 0.1 percent down at 89.20 pence, having hit a low of 89.38 pence the prior day, its lowest since Oct. 26.
AUD/USD: The Australian dollar fell below the 0.7700 handle after rising to a 1-week high the prior day, after data showed Australian retailers suffered another tepid month of sales. The economy's retail sales were flat in September, missing expectations of a 0.4 percent rise following a decline of 0.5 in August. The Aussie trades 0.3 percent down at 0.7689 having hit a high of 0.7729 the prior session; it’s highest since Oct. 25. FxWirePro's Hourly Aussie Strength Index stood at 79.81 (Slightly Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7672 (Previous Session Low), a break below targets 0.7630. On the upside, resistance is located at 0.7725 (61.8% retracement of 0.7883 and 0.7625), a break above could take it near 0.7755 (50% retracement).
NZD/USD: The New Zealand dollar held gains near a 1-week high after data showed Chinese services PMI rose to 51.2 in October, beating the forecast of 50.8 and previous reading of 50.6. The Kiwi trades 0.3 percent up at 0.6930, having touched a high of 0.6941 in the previous session, its highest level since Oct. 24. FxWirePro's Hourly Kiwi Strength Index was at 146.21 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6968 (61.8% retracement of 0.7206 and 0.6818), a break above could take it near 0.7013 (50.0% retracement of 0.7206 and 0.6818). On the downside, support is seen at 0.6894 (10-DMA), a break below could drag it till 0.6820.
Equities Recap
Asian shares steadied near decade highs, while the greenback declined as the U.S. Treasury yields weakened post-Federal Reserve Governor Jerome Powell nomination as the next Fed Chair.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent.
Tokyo's Nikkei rose 0.5 percent to 22,539.12 points, Australia's S&P/ASX 200 index gained 0.5 percent to 5,959.80 points and South Korea's KOSPI edged up 0.5 percent to 2,546.60 points.
Shanghai composite index slumped 0.9 percent to 3,356.40 points, while CSI300 index was trading 0.6 percent down at 3,973.32 points.
Hong Kong’s Hang Seng was trading 0.3 percent higher at 28,612.62 points. Taiwan shares added 0.1 percent to 10,800.77 points.
Commodities Recap
Crude oil prices rose, extending previous session gains, supported by confident sentiment as OPEC-lead supply cuts help tighten the market. International benchmark Brent crude was trading 0.3 percent up at $60.88 per barrel by 0433 GMT, having hit a high of $61.68 on Wednesday, its highest since July 2015. U.S. West Texas Intermediate was trading 0.2 percent up at $54.79 a barrel, after rising as high as $55.19 on Wednesday its highest since Feb. 23.
Gold prices steadied near a 2-week high touched in the previous session as the dollar slightly recovered following modest losses after the unveiling of U.S. tax reforms. Spot gold was up 0.1 percent to $1,277.10 per ounce at 0436 GMT, having hit the highest in about two weeks at 1,283.98 on Thursday. U.S. gold futures for December delivery were mostly unchanged at $1,278.50.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.348 percent lower by 0.001 bps, while 5-year yield was 0.001 bps down at 2.001 percent.
The Australian government bond futures jumped, with the three-year bond contract up 6 ticks at 98.060. The 10-year contract climbed 7.5 ticks to 97.40.
The New Zealand government bonds gained, sending yields 7.5 basis points lower at the long end of the curve.
The Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year firmed One Canadian cent to yield 1.411 percent and the 10-year gained 14 Canadian cents to yield 1.958 percent.
