Market Roundup
• Wall Street's key stock indices decline
• Trade deal could push gold down below $1,450- analyst
• Russian Sep Real Wage Growth (YoY) 3.1%,3.4% forecast, 2.4% previous
• Russian Oct Retail Sales (YoY) 1.6%,1.0% forecast, 0.7% previous
• Russian Oct Unemployment Rate 4.6%, 4.6% forecast, 4.5% previous
• Canada Common CPI (YoY) 1.9%,1.9% previous
• Canada Oct Core CPI (YoY) 1.9%,1.9% forecast, 1.9% previous
• Canada Oct Core CPI (MoM) 0.4%,0.0% previous
• Canada Oct CPI (MoM) 0.3%,0.3% forecast, -0.4% previous
• Canada Oct CPI (YoY) 1.9%,1.9% forecast, 1.9% previous
• Canada Median CPI (YoY) 2.2%,2.1% previous
• Canada Trimmed CPI (YoY) 2.1%,2.1% previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan Foreign Bonds Buying 528.8B
• 23:50 Japan Foreign Investments in Japanese Stocks
• 02:00 New Zealand Credit Card Spending (YoY) 4.8% previous
• 04:30 Japan All Industries Activity Index (MoM) 1.5% forecast, 0.0% previous
Looking Ahead - Events, Other Releases (GMT)
• 09:40 ECB's De Guindos Speaks
• 12:30 ECB Publishes Account of Monetary Policy Meeting
• 18:30 ECB's De Guindos Speaks
• 13:40 BoC Gov Poloz Speaks
Currency Summaries
EUR/USD: The euro edged higher against the U.S. dollar on Wednesday, as investors maintained bets that the United States and China can reach a deal to end their damaging trade war.The world’s two largest economies are in talks on an initial deal to end an 18-month trade dispute that has damaged supply chains and upset global markets, with Washington due to impose a new round of tariffs on Chinese goods from Dec. 15.A lack of clear news on the progress of talks has not deterred investors emboldened by a growing sense that risks of a recession, a spectre through the year, have receded. Immediate resistance can be seen at 1.1090 (100 DMA), an upside break can trigger rise towards 1.1176 (200 DMA).On the downside, immediate support is seen at 1.1054 (5 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: The British pound dipped against on Wednesday, as sterling was dragged down by Labour leader Jeremy Corbyn’s better-than-expected showing in a pre-election TV debate versus Prime Minister Boris Johnson who is perceived by markets as more business-friendly. The pound was last down 0.1% at $1.2918, having weakened to a five-day low of $1.2888 against a generally firmer U.S. currency, which was benefiting from renewed concerns over the direction of U.S.-China trade talks. Immediate resistance can be seen at 1.2984 (Higher BB), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.2866 (11 DMA), a break below could take the pair towards 1.2800 (Psychological level).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as Canadian dollar was weighed down by Sino-U.S. trade tensions. The U.S. senate angered China by passing a bill requiring annual certification of Hong Kong’s autonomy and warning Beijing against violently suppressing protesters. China demanded that the United States stop interfering in its internal affairs and said it would retaliate. At (1931 GMT), the Canadian dollar was trading 0.29% lower at 1.3310 to the greenback.Immediate resistance can be seen at 1.3310 (Higher BB), an upside break can trigger rise towards 1.3350 (Higher BB).On the downside, immediate support is seen at 1.3275 (200 DMA), a break below could take the pair towards 1.3200 (Psychological level).
USD/JPY: The U.S. dollar declined against the yen on Wednesday as worsening U.S.-China relations fuelled demand for the greenback. U.S. President Donald Trump threatened to raise new tariffs on Chinese imports if ongoing trade negotiations fail.China condemned the U.S. legislation aimed at protecting human rights in Hong Kong, saying that the U.S. should stop interfering.The dollar index , which measures the greenback against six other major currencies, was 0.2% lower at 102.27. Strong resistance can be seen at 108.74 (9 DMA), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 108.27 (50 DMA), a break below could take the pair towards 107.97 (Lower BB).
Equities Recap
European shares lost ground on Wednesday, with trade-sensitive sectors taking a hit after U.S. President Donald Trump threatened to raise U.S. tariffs on Chinese goods if a deal could not be reached with Beijing..
The UK's benchmark FTSE 100 closed down by 0.84 percent, Germany's Dax ended down by 0.48percent, and France’s CAC finished the up by 0.25 percent.
Wall Street’s main indexes edged lower on Wednesday as escalating tensions between Washington and Beijing raised doubts about a trade deal, overshadowing upbeat earnings from retailers Target and Lowe’s.
Dow Jones closed down by 0.58 percent, S&P 500 ended down 0.67 percent, Nasdaq finished the day down by 0.74 percent.
Treasuries Recap
U.S. Treasury yields dropped on Wednesday on news a “phase one” U.S.-China trade deal may not be completed this year, according to sources.
Benchmark 10-year Treasury note yields were last down 5.1 basis points at 1.735%. The two-year yield was down 2.4 basis points at 1.572%, flattening the yield curve to 16.1 basis points from 18.5 at Tuesday’s close.
Commodities Recap
Gold fell on Wednesday, retreating from a two-week high hit earlier in the session, after the United States started issuing licenses for some companies to supply goods to Chinese firm Huawei, rekindling hopes for trade negotiations that had shown signs of turning more contentious.
Spot gold dipped 0.3% to $1,468.14 per ounce as of 11:17 a.m. ET (1619 GMT), having touched a two-week high of $1,478.80 earlier.
Oil prices surged more than 2% on Wednesday after a better-than-expected U.S. crude inventories report and as Russia said it would continue its cooperation with OPEC to keep the global oil market balanced.
Brent crude futures settled at $62.40 a barrel, gaining $1.49, or 2.5%, and West Texas Intermediate crude settled at $57.11 a barrel, up $1.90, or 3.4%.
