Market Roundup
•US Continuing Jobless Claims 1,861K, 1,830K forecast, 1,819K previous
•US Core CPI (MoM) (Sep) 0.3%, 0.2% forecast, 0.3% previous
•US Core CPI (YoY) (Sep) 3.3%, 3.2% forecast, 3.2% previous
•US Core CPI Index (Sep) 320.77, 320.59 previous, 319.77
•US CPI (YoY) (Sep) 2.4%, 2.3% forecast, 2.5% previous
•US CPI (MoM) (Sep) 0.2%, 0.1% forecast, 0.2% previous
•US CPI Index, n.s.a. (Sep) 315.30, 314.86 previous, 314.80
•US CPI Index, s.a. (Sep) 314.69, 314.12 previous
•US CPI, n.s.a. (MoM) (Sep) 0.16%, 0.08% previous
•US Initial Jobless Claims 258K, 231K forecast, 225K previous
•US Jobless Claims 4-Week Avg. 231.00K, 224.25K previous
•US Real Earnings (MoM) (Sep) -0.1%, 0.6% previous
•US Natural Gas Storage 82B, 73B previous, 55B
•USD Cleveland CPI (MoM) (Sep) 0.3%, 0.3% previous
•US 4-Week Bill Auction 4.750%, 4.755% previous
•US 8-Week Bill Auction 4.640%, 4.655% previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Oher Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: Euro swung wildly after U.S. weekly claims and September CPI reports but the broader down trend eventually resumed as investors shrug off German-U.S. yield spreads. Above estimate jobless and continuing claims sent U.S. 2-year yields and the dollar downward. The dollar's yield advantage over the euro decreased as German-U.S. spreads tightened. September headline CPI and core CPI came in above estimates however which fueled investors concerns inflation may be making a comeback. Investors appear to be putting more emphasis on pricing data for trading decisions and will now focus on September PPI due Friday. Immediate resistance can be seen at 1.1005(38.2%fib), an upside break can trigger rise towards 1.1053(50%fib).On the downside, immediate support is seen at 1.0933(23.6%fib), a break below could take the pair towards 1.0903 (Lower BB).
GBP/USD: Sterling initially dipped but recovered some ground against dollar on Thursday as investors weighed the interest rate path from the Federal Reserve after economic data and comments from central bank officials. U.S. consumer prices rose slightly more than expected in September as food costs rose, but the annual increase in inflation was the smallest in more than 3-1/2 years. The Labor Department said the consumer price index increased 0.2% last month after gaining 0.2% in August, slightly above expectations of economists polled for a 0.1% rise.In the 12 months through September, the CPI rose 2.4% versus the 2.3% estimate. The dollar index =USD fell 0.03% to 102.85 after earlier rising as much as 0.27% . Immediate resistance can be seen at 1.3127(38.2%fib), an upside break can trigger rise towards 1.3188(50%fib).On the downside, immediate support is seen at 1.3054(23.6%fib), a break below could take the pair towards 1.3000(Psychological level).
USD/CAD: The Canadian dollar fell for a seventh-straight day against its U.S. counterpart on Thursday as investors weighed prospects of the Federal Reserve pausing its rate cuts and awaited domestic jobs data that could guide bets on the Bank of Canada outlook. U.S. consumer prices rose slightly more than expected in September amid higher food costs. Still, the annual increase of 2.4% was the smallest in more than 3-1/2 years.U.S. consumer prices rose slightly more than expected in September amid higher food costs. Still, the annual increase of 2.4% was the smallest in more than 3-1/2 years. The loonie was trading 0.3% lower at 1.3750 to the U.S. dollar, or 72.73 U.S. cents, after touching its weakest level since Aug. 7 at 1.3775. Immediate resistance can be seen at 1.3777 (23.6%fib), an upside break can trigger rise towards 1.3792(Higher BB).On the downside, immediate support is seen at 1.3711(38.2%fib), a break below could take the pair towards 1.3654 (50%fib).
USD/JPY: The dollar steadied against the yen on Thursday as markets grew more confident about a patient approach from the Federal Reserve to further monetary easing, even as a key inflation report loomed later in the day. September's consumer price index (CPI), due at 1230 GMT, is likely to show core inflation holding steady at a 3.2% year-on-year clip. Traders lay 80% odds on the Fed cutting rates by a quarter point at its next policy decision on Nov. 7, versus 20% probability of no change, according to the CME Group's FedWatch Tool. A day earlier, the probability of a cut stood at 85%.The dollar index was little changed at 102.86 as of 0024 GMT, sticking close to Wednesday's high of 102.93.Immediate resistance can be seen at 149.49(23.6 %fib), an upside break can trigger rise towards 150.00(Psychological level). On the downside, immediate support is seen at 147.61(38.2 %fib), a break below could take the pair towards 147.00(Psychological level).
Equities Recap
European shares closed lower on Thursday, with defence and industrial stocks leading losses, after data showed U.S. inflation ticked higher, while investors waited for France to unveil its 2025 budget..
UK's benchmark FTSE 100 closed down by 0.07 percent, Germany's Dax ended down by 0.23 percent, France’s CAC finished the day down by 0.24 percent.
Wall Street's main indexes closed lower on Thursday as investors looked to higher-than-expected inflation and unemployment claims for indications on the health of the U.S. economy and the path for interest rates.
Dow Jones closed up by 0.14% percent, S&P 500 closed down by 0.21% percent, Nasdaq settled down by 0.05% percent.
Commodities Recap
Oil prices jumped after two sessions of decline, boosted by a spike in fuel demand as Hurricane Milton slammed into Florida, with Middle East supply risks and signs that demand from the U.S. and China could increase also providing support.
U.S. crude settled up 3.56% to $75.85 a barrel and Brent LCOc1 rose to settle at $79.40 per barrel, up 3.68% on the day.
Gold prices extended gains on Thursday after traders added to bets that the Federal Reserve will deliver an interest-rate cut next month following the latest U.S. economic data.
Spot gold was up 0.6% at $2,623.58 per ounce as of 1:59 p.m. ET (1759 GMT), on track to snap a six-session losing streak. U.S. gold futures settled 0.5% higher to $2,639.30.
