Market Roundup
• US Core CPI (YoY) (Oct) 3.3%, 3.3% forecast, 3.3% previous
• US Core CPI Index (Oct) 321.67, 321.65 forecast, 320.77 previous
• US CPI (YoY) (Oct) 2.6%, 2.6% forecast, 2.4% previous
• US CPI (MoM) (Oct) 0.2%, 0.2% forecast, 0.2% previous
• US CPI Index, n.s.a. (Oct) 315.66, 315.59 forecast, 315.30 previous
• US CPI Index, s.a. (Oct) 315.45, no forecast, 314.69 previous
• US CPI, n.s.a. (MoM) (Oct) 0.12%, no forecast, 0.16% previous
• US Real Earnings (MoM) (Oct) 0.1%, no forecast, 0.1% previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Employment Change (Oct) 25.2K, 64.1K previous
•00:30 Australia Full Employment Change (Oct) no data, 51.6K previous
•00:30 Australia Participation Rate (Oct) 67.2%, 67.2% previous
Looking Ahead Events And Other Releases (GMT)
•00:30 Australia RBA Assistant Governor Jones Speaks
Currency Summaries
EUR/USD: The euro tumbled below 1.06 level to a fresh one-year low amid broad dollar strength and euro zone growth concerns. Dollar firmed after consumer price index rose 0.2% in October, as expected, with the annual pace quickening to 2.6% from 2.4% the prior month.Bundesbank President Joachim Nagel said in a Die Zeit interview that new tariffs planned by U.S. President-elect Donald Trump could cost Germany 1% in economic output if they come into effect.Bank of France head and European Central Bank member Francois Villeroy de Galhau said on Wednesday he expected inflation to remain moderate in France and that he anticipated more rate cuts by the ECB.. Euro was down 0.28% at $1.0624.Immediate resistance can be seen at 1.0625(38.2%fib), an upside break can trigger rise towards 1.0683(Daily high).On the downside, immediate support is seen at 1.0562`(23.6%fib), a break below could take the pair towards 1.0500(Psychological level)
GBP/USD: The British pound dropped sharply on Wednesday as investors reacted to the latest U.S. inflation data and assessed the Federal Reserve's interest rate outlook. The U.S. Labor Department reported that the consumer price index (CPI) rose 0.2% for the fourth consecutive month, in line with economists' expectations. Over the 12 months through October, the CPI increased by 2.6%, matching forecasts, after a 2.4% rise in September. Comments from several Federal Reserve officials on Wednesday suggested that, after concerns earlier this year that the labor market might be cooling too quickly, the central bank is now refocusing on inflation risks. They are carefully considering the timing, pace, and extent of future interest rate cuts .Immediate resistance can be seen at 1.2774(38.2%fib), an upside break can trigger rise towards 1.2847(50%fib).On the downside, immediate support is seen at 1.2690 (23.6%fib), a break below could take the pair towards 1.2548 (Lower BB).
USD/CAD: The Canadian dollar fell to a 4-1/2-year low against the U.S. dollar on Wednesday, as investors assessed U.S. inflation data and the growing possibility of a widening economic growth gap between the U.S. and Canada. U.S. consumer prices rose as anticipated in October, driven by higher shelter costs, including rents, while the pace of progress toward lower inflation has slowed in recent months. The price of oil, one of Canada's major exports, rebounded on short-covering after prices fell near a two-week low in the prior session. U.S. crude oil futures settled 0.5% higher at $68.43 a barrel.The Canadian dollar was trading 0.3% lower at 1.3985 to the U.S. dollar .Immediate resistance can be seen at 1.4001 (23.6% fib), an upside break can trigger rise towards 1.4060(Higher BB).On the downside, immediate support is seen at 1.3945(38.2%fib), a break below could take the pair towards 1.38755(50%fib).
USD/JPY: The dollar rose against the yen on Wednesday as investors assessed the latest U.S. inflation data and the path of interest rates from the Federal Reserve.The Labor Department said the consumer priceindex rose 0.2% for the fourth straight month, in line with expectations of economists polled by Reuters. In the 12 months through October, the CPI advanced 2.6%, also matching forecasts, after climbing 2.4% in September. The dollar index which measures the greenback against a basket of currencies including the yen and the euro, gained 0.47% to 106.49.Against the Japanese yen the dollar strengthened 0.63% to 155.57. Immediate resistance can be seen at 155.62(23.6 %fib) an upside break can trigger rise towards 156.35Higher BB). On the downside, immediate support is seen at 154.34(Daily low) a break below could take the pair towards 153.41(38.2%fib).
Equities Recap
European stocks ended Wednesday on a downbeat note, with the STOXX 600 closing at a three-month low. Gains in energy stocks were offset by losses in real estate, while market focus remained on the U.S. inflation data, which could influence expectations regarding the Federal Reserve's interest rate decisions..
UK's benchmark FTSE 100 closed up by 0.06 percent, Germany's Dax closed down by 0.16 percent, France’s CAC closed down by 0.14 percent.
The Dow and S&P 500 finished slightly higher on Wednesday, while the Nasdaq edged lower, following October data that showed consumer prices rising as expected. The inflation figures reinforced expectations that the U.S. Federal Reserve may cut interest rates in December.
Dow Jones was up by 0.11% percent, S&P 500 was up by 0.02% percent, Nasdaq was down by 0.23% percent.
Commodities Recap
Gold prices extended their losses for a fourth consecutive session on Wednesday, pressured by a stronger dollar and rising bond yields following the release of October U.S. consumer price data, which came in as expected.
Spot gold was down 0.7% at $2,580.39 per ounce by 01:49 p.m. ET (1849 GMT), after hitting a near two-month low earlier in the session.U.S. gold futures settled 0.8% lower at $2,586.50 per ounce.
Oil prices saw a modest rebound on Wednesday, driven by short-covering after falling to a near two-week low on OPEC's downgraded demand forecast. However, gains were capped as the dollar surged to a seven-month high.
Brent crude futures settled up 39 cents, or 0.5%, to $72.28 a barrel. U.S. West Texas Intermediate crude (WTI) futures gained 31 cents, or 0.5%, to $68.43.
