Market Roundup
- United Kingdom Oct 2018 PSNB, GBP increase to 7.956 GBP (forecast 5.35 GBP) vs previous 1.981 GBP (revised from 3.259 GBP)
- United Kingdom Oct 2018 PSNB ex banks GBP increase to 8.82 GBP (forecast 6.15 GBP) vs previous 2.845 GBP (revised from 4.123 GBP)
- United Kingdom Oct 2018 PSNCR, GBP decrease to -3.346 GBP vs previous 18.307 GBP (revised from 15.846 GBP)
Economic Data Ahead
- (0830 ET/1330 GMT) The number of Americans filing for unemployment benefits is likely to have decreased by 1,000 to a seasonally adjusted 215,000 for the week ended Nov. 16, while continuing claims for the week ended Nov. 9 is expected to decline to 1.625 million from a previous reading of 1.676 million.
- (0830 ET/1330 GMT) The U.S. durable goods orders are expected to have decreased 2.5 percent in October after rising 0.8 percent in September, while non-defense capital goods orders excluding aircraft are likely to have risen 0.2 percent after easing 0.1 percent the prior month.
- (0830 ET/1330 GMT) Statistics Canada will release its wholesale trade figures for the month of September. The indicator is likely to have increased by 0.3 percent, after unexpectedly declining 0.1 percent in August.
- (1000 ET/1500 GMT) National Association of Realtors is expected to report that U.S. existing home sales rose 1.0 percent to an annual rate of 5.20 million units in October after falling 3.4 percent to 5.15 million units in September.
- (1000 ET/1500 GMT) The University of Michigan is likely to report that U.S. consumer sentiment index rose to 98.3 in November, after posting a similar reading in October.
- (1030 ET/1530 GMT) The Energy Information Administration (EIA) reports its Crude Oil Stocks for the week ending November 16.
- (1030 ET/1530 GMT) The Energy Information Administration (EIA) reports its Natural Gas Storage for the week ending November 16.
Key Events Ahead
- (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 consolidated within narrow ranges as Federal Reserve officials concerns over a potential global slowdown led some investors to bet the rate-hike cycle was near its end. The greenback against a basket of currencies trades 0.05 percent down at 96.74, having touched a low of 96.04 on Tuesday, its lowest since Nov 7. FxWirePro's Hourly Dollar Strength Index stood at 116.07 (Highly Bullish) by 1000 GMT.
EUR/USD: The euro edged higher, reversing some of its previous session losses on reports that Italy may be open to reviewing its draft budget for 2019. The European Commission is set to take preliminary step towards disciplining Italy over its draft fiscal plan later in the day. The European currency traded 0.1 percent up at 1.1376, having touched a high of 1.1472 on Tuesday, its highest since Nov. 7. FxWirePro's Hourly Euro Strength Index stood at -19.96 (Neutral) by 1000 GMT. 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 rallied above the 113.00 handle, as an upward momentum in the U.S. Treasury bond yields pointed to improving investors' appetite for the riskier asset. However, concerns over slowing global growth and prospects of a further escalation in the US-China trade war limited upside. The major was trading 0.3 percent up at 113.13, having hit a low of 112.30 on Tuesday, its lowest since October 29. FxWirePro's Hourly Yen Strength Index stood at -40.41 (Neutral) by 1000 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 113.38 (October 31 High), a break above targets 113.81 (November 7 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 eased, extending previous session losses, amid growing concerns over Brexit negotiations and political uncertainty in Britain. However, hopes that Prime Minister Theresa May can agree a blueprint for Britain's post-Brexit ties with the European Union capped losses. The major traded 0.1 percent down at 1.2777, having hit a low of 1.2723 on Thursday; it’s lowest since October 31. FxWirePro's Hourly Sterling Strength Index stood at -94.10 (Slightly Bearish) 1000 GMT. Investors’ attention will remain UK PM Theresa and EC Juncker's meeting and 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 0.1 percent down at 89.03 pence, having hit a low of 89.32 on Monday, it’s lowest since October 31.
USD/CHF: The Swiss franc declined, weighed down by a surge in the U.S. Treasury yields and improving investor risk sentiment across the board. The major trades 0.05 percent up at 0.9953, having touched a low of 0.9908 on Tuesday; it’s lowest since Oct. 17. FxWirePro's Hourly Swiss Franc Strength Index stood at 75.77 (Slightly Bullish) by 1000 GMT. On the higher side, near-term resistance is around 0.9980 (Oct. 22 High) and any break above will take the pair to next level till 1.0050 (Nov. 7 High). The near-term support is around 0.9897 (October 17 Low). and any close below that level will drag it till 0.9847 (October 15 Low).
Equities Recap
European shares advanced, boosted by a recovery in the tech sector and hopes that Italy could compromise with Brussels over its budget plans.
The pan-European STOXX 600 index gained 0.5 percent at 352.74 points, while the FTSEurofirst 300 index rallied 0.4 percent to 1,390.13 points.
Britain's FTSE 100 trades 0.7 percent up at 6,992.99 points, while mid-cap FTSE 250 surged 0.1 percent to 18,384.10 points.
Germany's DAX rose 0.6 percent at 11,133.14 points; France's CAC 40 trades 0.5 percent higher at 4,948.38 points.
Commodities Recap
Crude oil rebounded to regain some of the previous day's 6 percent plunge, boosted by a report of an unexpected decline in U.S. crude inventories. International benchmark Brent crude was trading 1.9 percent up at $63.57 per barrel by 1028 GMT, having hit a low of $61.75 on Tuesday, its lowest since Dec. 6. U.S. West Texas Intermediate was trading 2.02 percent up at $54.41 a barrel, after falling as low as $52.80 on Tuesday, its lowest since the end of October 2017.
Gold prices surged, reversing most of its previous session losses, as concerns about global economic growth dented investor sentiment. Spot gold was 0.2 percent up at $1,223.84 per ounce at 1031 GMT, having hit a high of $1228.64 on Tuesday, its highest since Nov. 7. U.S. gold futures rose 0.2 percent to $1,223.9 per ounce.
Treasuries Recap
The U.S. Treasuries traded lower during late afternoon session ahead of the initial jobless claims, scheduled to be released today by 13:30GMT. The yield on the benchmark 10-year Treasuries jumped 3-1/2 basis points to 2.872 percent, the super-long 30-year bond yields also surged 3-1/2 basis points to 3.329 percent and the yield on the short-term 2-year too remained nearly 3-1/2 basis points higher at 2.829 percent.
The German bunds plummeted during afternoon session ahead of the European Central Bank’s (ECB) account of a monetary policy meeting, due on November 22 by 12:30GMT. The German 10-year bond yields, which move inversely to its price, jumped 2 basis points to 0.370 percent, the yield on the 30-year note rose 1-1/2 basis points to 1.030 percent and the yield on short-term 2-year traded higher at -0.649 percent.
The Japanese government bonds remained flat during Asian session as investors remained sidelined 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 side-lined 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.
