Market Roundup
•Canada ADP Nonfarm Employment Change 65.8K,9.6K previous
•US Continuing Jobless Claims 2,080K, 2,120K forecast, 2,160K previous
•US Jobless Claims 4-Week Avg 272.75K,278.00K previous
•US Initial Jobless Claims268K, 260K forecast, 267K previous
•Canada Sep Foreign Securities Purchases 20.02B,26.30B previous
•US Nov Philly Fed CAPEX Index 31.10,32.40 previous
•US Nov Philly Fed Employment 27.2,30.7 previous
•Canada Sep Foreign Securities Purchases by Canadians 17.19B, 15.17B previous
•US Philly Fed Business Conditions 39.0, 24.2 previous
•US Nov Philly Fed Prices Paid 80.00,70.30 previous
•US Nov Philadelphia Fed Manufacturing Index 39.0, 24.0 forecast, 23.8 previous
•US Oct Leading Index (MoM) 0.9%,0.2% previous
•US Nov KC Fed Manufacturing Index 24,25 previous
•US Nov KC Fed Composite Index 17,31 previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Oct CPI, n.s.a (MoM) 0.4% previous
• 23:50 Japan Oct National Core CPI (YoY) 0.1% forecast, 0.1% previous
• 23:50 Japan Oct National CPI (YoY) 0.2% previous
•07:30 New Zealand Credit Card Spending (YoY) -12.9% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: EUR/USD: The euro rebounded on Thursday against the dollar as traders assessed whether the U.S. currency's recent surge fuelled by differing expectations for interest rate rises had gone too far.Markets have been betting that the European Central Bank will fall behind in tightening policy even as rising inflation prompts others including the Federal Reserve to raise rates over the next 12 months. The index fell as low as 99.57 earlier in the session. The euro, which on Wednesday touched a 16-month low below $1.13, rose 0.2% to $1.1345 on Thursday. Immediate resistance can be seen at 1.1373(38.2%fib), an upside break can trigger rise towards 1.1423 (50%fib).On the downside, immediate support is seen at 1.1308 (23.6 % fib), a break below could take the pair towards 1.1266(Lower BB).
GBP/USD: The pound edged down slightly against the dollar on Thursday as traders assessed whether recent gains linked to expectations of a central bank rate hike have gone too far. Sterling had earlier in the day hit a one-week high against the greenback as inflation and encouraging economic data fuelled speculation the Bank of England (BoE) will act first among major global policymakers to raise rates for the first time since the COVID-19 pandemic struck early last year. The pound was last down 0.1% against the dollar at $1.3481. Immediate resistance can be seen at 1.3526 (50% fib), an upside break can trigger rise towards 1.3586 (61.8%fib).On the downside, immediate support is seen at 1.3462 (38.2%fib), a break below could take the pair towards 1.3386(23.6%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday, after earlier touching a six-week low, as investors assessed the greenback's recent rally amid diverging central bank policy expectations and as oil prices remained under pressure. The loonie slumped on Tuesday after domestic data showed inflation rising at 4.7% in October, in line with market expectations. The price of oil, one of Canada's major exports, rose slightly after hitting a six-week low following China's announcement it was moving to tap reserves . The Canadian dollar was up 0.02%, at 1.2605 to the U.S. dollar, or 79.33 U.S. cents, having earlier touched its weakest level since Oct. 6, at 1.2627.Immediate resistance can be seen at 1.2642 (23.6%fib), an upside break can trigger rise towards 1.2667(Higher BB).On the downside, immediate support is seen at 1.2590 (38.2%fib), a break below could take the pair towards 1.2549(50%fib).
USD/JPY: The dollar paused rally against the Japanese yen on Thursday as traders assessed whether the U.S. currency's recent surge, fuelled by diverging central bank tightening expectations amid surging inflation around the globe, had gone too far. Recent U.S. data showed inflation in October running at its hottest since 1990, while retail sales numbers topped forecasts, leading the market to price in earlier rate hikes by the Federal Reserve than had been anticipated, driving strength in the greenback. The dollar index , which measures the currency against a basket of six rivals, reached its highest since mid-July 2020 on Wednesday at 96.226, but was last down 0.272% at 95.553. Strong resistance can be seen at 114.24 (38.2% fib), an upside break can trigger rise towards 114.82 (23.6%fib).On the downside, immediate support is seen at 113.88(50%fib), a break below could take the pair towards 113.40 (61.8% fib).
Equities Recap
European shares ended lower on Thursday, weighed by weakness in commodity-related stocks amid declining oil and metal prices, and breaking a record-breaking six-day rally fuelled by strong earnings.
UK's benchmark FTSE 100 closed down by 0.48 percent, Germany's Dax ended down by 0.18 percent, France’s CAC finished the day down by 0.21 percent.
Both the S&P 500 and the Nasdaq eked out record closing highs after a topsy-turvy Thursday on Wall Street, as investors focused on upbeat retail and technology earnings which outshone hawkish inflation comments from a Federal Reserve policymaker.
Dow Jones closed down by 0.17% percent, S&P 500 closed up by 0.38 % percent, Nasdaq settled up by 0.45% percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday after the relative success of a 20-year bond auction on Wednesday reduced fears about further rapid yield increases, while the U.S. Treasury saw strong demand for an auction of 10-year inflation-linked debt.
Benchmark 10-year notes were last at 1.587%. They have jumped from a low of 1.415% last week and are holding below five-month highs of 1.705% reached on Oct. 21.
Commodities Recap
Gold prices slipped on Thursday as encouraging weekly U.S. jobless claims data strengthened bets for an earlier-than-expected rate hike by the Federal Reserve following recent strong inflation data out of the United States.
Spot gold fell 0.4% to $1,858.76 per ounce by 1:41 pm ET (1841 GMT), and U.S. gold futures settled down 0.5% at $1,861.4.
Oil prices rose slightly on Thursday after dropping to six-week lows as investors wondered about how much crude major economies would release from their strategic reserves and how much that would ease global crude demand pressures.
Brent crude settled up 96 cents, or 1.2%, at $81.24 a barrel. The session low of $79.28 was the lowest since Oct. 7. U.S. West Texas Intermediate crude futures closed 65 cents, or 0.8%, higher at $79.01 a barrel
