Market Roundup
• US Exports (Oct) 265.70B, 267.90B previous
• US Imports (Oct) 339.60B ,352.30B previous
• US Initial Jobless Claims 224K, 215K forecast, 215K previous
• US Jobless Claims 4-Week Avg. 218.25K ,217.50K previous
• US Trade Balance (Oct) -73.80B ,-75.70B forecast, -83.80B previous
• Canada Exports (Oct) 64.22B, 63.52B previous
• Canada Imports (Oct) 65.14B 64.82B previous
• Canada Trade Balance (Oct) -0.92B -0.60B forecast, -1.30B previous
• US Natural Gas Storage -30B -43B, -2B previous
• US 4-Week Bill Auction 4.400% ,4.550% previous
• US 8-Week Bill Auction 4.350%, 4.500% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Household Spending (YoY) (Oct) -2.6% forecast,-1.1% previous
•23:30 Japan Household Spending (MoM) (Oct) 0.4% forecast, -1.3% previous
•23:30 Japan Overall Wage Income of Employees (Oct) 2.6% forecast,2.8% previous
•23:30 Japan Overtime Pay (YoY) (Oct) -0.90% previous
•23:50 Japan Foreign Reserves (USD) (Nov) 1,239.0B previous
Looking Ahead Events And Other Releses(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against the dollar on Thursday as investors held out hope that a new budget could be passed in France following the collapse of Prime Minister Michel Barnier's government. France's government lost a confidence vote late on Wednesday, marking its first such defeat since 1962, with far-right and leftist lawmakers uniting to oust Barnier. The outcome had been widely anticipated, and as a result, the euro, French stocks, and bonds remained largely steady on Thursday as Barnier officially resigned. The euro was last up 0.6% at $1.0567, further moving away from the two-year low of $1.0332 hit at the end of November as traders braced for a drawn-out reckoning for France. Immediate resistance can be seen at 1.0609(38.2%fib), an upside break can trigger rise towards 1.0712(50%fib).On the downside, immediate support is seen at 1.0462(23.6%fib), a break below could take the pair towards 1.0385(Lower BB).
GBP/USD: The British pound rose for a third consecutive session on Thursday as it continued to recover from a six-month trough hit in late November. Sterling has been at the mercy of the dollar in recent months, dropping from a 1-1/2-year high in October as the U.S. jobs market roared ahead and falling further in November as the re-election of Donald Trump boosted the American currency. Bank of England data on Thursday showed British employers' expectations for wage growth have cooled a bit further. Separate figures showed activity in Britain's construction industry picked up in November, though neither release impacted sterling. The pound has largely remained out of the limelight as the re-election of Trump as has led to swings in currencies whose economies might face tariffs, such as the euro, Chinese yuan, Mexican peso and Canadian dollar. Immediate resistance can be seen at 1.2767(50%fib), an upside break can trigger rise towards 1.2789 (SMA 30).On the downside, immediate support is seen at 1.2629(38.2%fib), a break below could take the pair towards 1.2507(23.6%fib).
USD/CAD: The Canadian dollar strengthened against the U.S. dollar on Thursday as investors took stock of recent gains in the greenback, ahead of employment reports from both countries that could shape expectations for future interest rate cuts. The U.S. dollar weakened against a basket of major currencies after initial claims for state unemployment benefits rose, with investors maintaining bets on a Federal Reserve rate cut during its upcoming policy meeting on December 18.Both Canada and the U.S. are set to release their November employment data on Friday. Economists forecast Canada added 25,000 jobs, while U.S. non-farm payrolls are expected to rise by 200,000. Meanwhile, the Bank of Canada is anticipated to continue its easing cycle at its policy meeting next Wednesday.On the domestic front, Canada's trade deficit narrowed to C$924 million ($657.6 million) in October, providing some positive economic data ahead of the employment reports. Immediate resistance can be seen at 1.4083(23.6% fib), an upside break can trigger rise towards 1.4121 (Higher BB).On the downside, immediate support is seen at 1.4000 (Psychological level), a break below could take the pair towards 1.3982(38.2%fib).
USD/JPY: The dollar eased against the yen on Thursday as traders weighed whether the Bank of Japan (BOJ) will raise interest rates at its upcoming December meeting. Expectations had been building for a rate hike at the BOJ's December 18-19 meeting, supported by comments from Governor Kazuo Ueda. However, media reports on Wednesday suggested that the BOJ may hold off on raising rates, leading to some uncertainty in the markets.Further complicating the outlook, BOJ board member Toyoaki Nakamura remarked on Thursday that the central bank must carefully evaluate various economic indicators, such as wage growth and business sentiment, before making a decision on rates. Nakamura, who is known for his dovish stance on monetary policy, left the door open for a potential rate hike, keeping market expectations for action at the BOJ's upcoming meeting. Immediate resistance can be seen at 150.97 (38.2%fib) an upside break can trigger rise towards 153.62 (23.6%fib). On the downside, immediate support is seen at 148.82(50%fib) a break below could take the pair towards 147.50(Lower BB).
Equities Recap
European stocks closed at a more than one-month high on Thursday, bolstered by gains in bank stocks, as investors remained optimistic that a new budget could be passed in France following the downfall of Prime Minister Michel Barnier's government.
UK's benchmark FTSE 100 closed up by 0.16percent, Germany's Dax ended up by 0.63 percent, France’s CAC finished the day up by 0.37percent.
U.S. stocks closed lower on Thursday, pressured by a sharp decline in UnitedHealth and a pullback in technology stocks, as investors looked ahead to Friday's jobs report for clues on the economy and Federal Reserve policy.
Dow Jones closed down by 0.55% percent, S&P 500 closed down by 0.19% percent, Nasdaq settled downby 0.16% percent.
Commodities Recap
Gold prices slipped on Thursday as U.S. Treasury yields rose following the release of weekly jobless claims data.
Spot gold was down 0.7% at $2,630.30 per ounce, as of 02:03 p.m. ET (1903 GMT). U.S. gold futures settled 1% lower at $2,648.40.
Oil prices dropped on Thursday as investors balanced an ample supply forecast for next year with OPEC+'s decision to delay its planned output increase until April 2025.
Brent crude settled down 22 cents, or 0.3%, at $72.09 a barrel, while U.S. West Texas Intermediate (WTI) settled down 24 cents, or 0.35%, at $68.30 a barrel.
