Market Roundup
- Bitcoin blows past $16,000, alarm bells ring louder
- Congress averts U.S. government shutdown for now
- Franken and Franks resign as misconduct charges batter U.S. Congress
- Hamas calls for Palestinian uprising over Trump's Jerusalem plan
- UK PM May to meet EU’s Juncker in Brussels – Spokesperson
- Brexit Irish border deal possible within hours
- Japan Oct Current Account NSA JPY, 2.176 bln, 2.271 bln last, 1.720.5 bln f' cast
- Japan Q3 GDP Rev q/q, Annualised, 2.5%, 1.4% last, 1.5% f' cast
- Japan Q3 GDP Revised q/q, 0.6%, 0.3% last, 0.4% f' cast
- Japan Oct real wages +0.2% y/y, first rise since Dec ’16, total earnings +0.6%
- Australia Oct Housing Finance -0.6%, -2.3%, -2.5% f' cast , -2.5% rvsd
- Chinese capital controls send tremor through Australian property
- U.S.-based stock ETFs attract $14.6 bln of inflows, largest since June -Lipper
Economic Data Ahead
- (0200 ET/0700 GMT) Germany Oct Exports m/m, SA f' cast 1.00%, -0.40% last
- (0200 ET/0700 GMT) Germany Oct Imports m/m, SA f' cast 1.1%, -1.0% last
- (0200 ET/0700 GMT) Germany Oct Trade Balance, EUR, SA f' cast 21.8 bln, 21.8 bln last
- (0245 ET/0745 GMT) France Oct Industrial Output m/m, f' cast -0.1%, 0.6% last
- (0430 ET/0930 GMT) Great Britain Oct Industrial Output m/m, y/y, f'cast 0.0%, 3.5%, 0.7%, 2.7% last
- (0430 ET/0930 GMT) Great Britain Oct Manufacturing Output m/m, y/y, f' cast 0.1%, 3.9%, 0.7%, 2.7% last
Key Events Ahead
- (0200 ET/0700 GMT) Riksbank's Ingves speaks at a conference – Stockholm
FX Beat
DXY: The dollar index advanced to an over 2-week high, as the U.S. Congress passed a bill to temporarily avert a government shutdown. The greenback against a basket of currencies traded 0.1 percent up at 93.84, having touched a high of 93.88 earlier, its highest since Nov. 22. FxWirePro's Hourly Dollar Strength Index stood at 88.49 (Slightly Bullish) by 0500 GMT.
EUR/USD: The euro slumped to an over 2-week low as the greenback rallied after the U.S. Congress on Thursday passed legislation to temporarily fund the government through Dec. 22, beating a Friday midnight deadline. The European currency traded 0.1 percent down at 1.1765, having touched a low of 1.1761 earlier, its lowest since Nov. 22. FxWirePro's Hourly Euro Strength Index stood at 10.11 (Neutral) by 0400 GMT. Investors’ attention will remain on series of data from the Eurozone economies, ahead of U.S. non-farm payroll and unemployment report. Immediate resistance is located at 1.1814 (21-DMA), a break above targets 1.1831. On the downside, support is seen at 1.1750, a break below could drag it lower 1.1712.
USD/JPY: The dollar rallied to a 3-week peak as the passage of a bill to temporarily extend U.S. government funding raised investors' optimism that a tax reform bill would also pass. The major was trading 0.3 percent up at 113.37, having hit a high of 113.38, its highest since Nov. 15. FxWirePro's Hourly Yen Strength Index stood at -48.71 (Neutral) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. non-farm payroll and unemployment report for further momentum. Immediate resistance is located at 113.49, a break above targets 113.91. On the downside, support is seen at 113.00, a break below could take it near 112.50 (5-DMA).
GBP/USD: Sterling rose to a 4-day high after falling to a 1-week low in the previous session as investors awaited the outcome on the Irish border issue, as the UK PM May headed to Brussels to finalize Irish border deal. The major traded 0.2 percent up at 1.3494, having hit a low of 1.3319 the day before, it’s lowest since Nov. 28. FxWirePro's Hourly Sterling Strength Index stood at 85.78 (Slightly Bullish) by 0400 GMT. Investors’ focus will remain on UK industrial production, trade balance and developments surrounding Brexit deal, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.3549 (Dec 1 High), a break above could take it near 1.3600. On the downside, support is seen at 1.3418 (10-DMA), a break below targets 1.3358 (Dec 6 Low). Against the euro, the pound was trading 0.2 percent down at 88.20 pence, having hit a high of 87.55 pence on Monday, it’s highest since Nov. 1.
AUD/USD: The Australian dollar tumbled to a 6-month low after a survey of 52 analysts predicted the Aussie would be at $0.7600 on a one- and three-month horizon, before edging higher to $0.7800 a year from now. However, the release of better-than-expected China's trade balance provided some support. The major trades down at 0.7508, having hit a low of 0.7501 earlier; it’s lowest since Jun. 7. FxWirePro's Hourly Aussie Strength Index stood at -111.00 (Highly Bearish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7501 (Session Low), a break below targets 0.7457 (Jun. 6 Low). On the upside, resistance is located at 0.7536, a break above could take it near 0.7560.
NZD/USD: The New Zealand steadied after declining to a 1-week low earlier in the session, following the release of China's trade balance for November, which came in at CNY 263.60 billion, beating the estimate of CNY 231.0 billion and previous month's figure of CNY 254.47 billion. The Kiwi trades 0.1 percent up at 0.6836, having touched a low of 0.6822 earlier, its lowest level since Dec. 1. FxWirePro's Hourly Kiwi Strength Index was at 72.55 (Neutral) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6866 (5-DMA), a break above could take it near 0.6900. On the downside, support is seen at 0.6816 (Dec. 1 Low), a break below could drag it lower 0.6794 (Nov. 20 Low).
Equities Recap
Asian shares extended previous session gain as economic news from China and Japan beat expectations, while greenback rallied to an over 2-week high, as the U.S. Congress passed a bill to temporarily avert a government shutdown.
MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.6 percent.
Tokyo's Nikkei gained 1.2 percent to 22,776.82 points, Australia's S&P/ASX 200 index rallied 0.3 percent to 5,994.40 points and South Korea's KOSPI climbed 0.2 percent to 2,466.79 points.
Shanghai composite index rose 0.6 percent to 3,292.92 points, while CSI300 index was trading 0.8 percent up at 4,002.28 points.
Hong Kong’s Hang Seng was trading 1.1 percent higher at 28,609.92 points. Taiwan shares added 0.4 percent to 10,398.62 points.
Commodities Recap
Crude oil prices rose, extending previous session gains as OPEC-led supply cuts are seen supporting markets going into next year. International benchmark Brent crude was trading 0.3 percent up at $62.20 per barrel by 0436 GMT, having hit a low of $61.11 on Wednesday, its lowest since Nov. 17. U.S. West Texas Intermediate was trading 0.1 percent higher at $56.66 a barrel, after falling as low as $55.79 the day before, its lowest since Nov. 17.
Gold prices steadied after falling to a more than four-month low in the previous session on the back of broad-based U.S. dollar strength. Spot gold was 0.1 percent up at $1,248.62 an ounce by 0439 GMT, after hitting its lowest since July 26 at $1,243.87 on Thursday. U.S. gold futures were 0.2 percent lower at $1,250.10.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.372 percent lower by 0.004 bps, while 5-year yield was 0.001 bps down at 2.144 percent.
The Australian government bond futures eased, with the three-year bond contract down 2.5 ticks at 98.030. The 10-year contract slipped 1.5 ticks to 97.4550.
The Canadian government bond prices were little changed across the yield curve, with the two-year down 1 Canadian cent to yield 1.495 percent and the 10-year rising 2 Canadian cents to yield 1.855 percent. The gap between Canada's 10-year yield and its U.S. equivalent widened by 3.4 basis points to a spread of -50.7 basis points.
