Market Roundup
•Canada Reserve Assets Total (Oct): 128.8B, 126.6B previous.
•Canada Services PMI (Oct): 50.50, 46.30 previous.
•US &P Global Composite PMI (Oct): 54.6, 54.8 forecast, 53.9 previous.
•US S&P Global Services PMI (Oct): 54.8, 55.2 forecast, 54.2 previous.
•US ISM Non-Manufacturing Business Activity (Oct): 54.3, 49.9 previous.
•US ISM Non-Manufacturing Employment (Oct): 48.2, 47.6 forecast, 47.2 previous.
•US ISM Non-Manufacturing New Orders (Oct): 56.2, 51.0 forecast, 50.4 previous.
•US ISM Non-Manufacturing PMI (Oct): 52.4, 50.7 forecast, 50.0 previous.
•US ISM Non-Manufacturing Prices (Oct): 70.0, 68.0 forecast, 69.4 previous.
•US Crude Oil Inventories: 5.202M, -2.500M forecast, -6.858M previous.
Looking Ahead Economic Data(GMT)
•Australia Exports (MoM) (Sep): -7.8%forecast-7.8% previous
•Australia Imports (MoM) (Sep): 3.2%forecast, 3.2% previous
•Australia Trade Balance (Sep): 3.930B forecast, 1.825B forecast.
•Japan Manufacturing & Services PMI (Oct): 50.90 forecast, 50.90 previous.
•Japan au Jibun Bank Services PMI (Oct): 52.4 forecast, 53.3 previous.
Looking Ahead Events And Other Releases(GMT)
•No events Ahead
Currency Forecast
EUR/USD : The euro edged higher against the dollar on Wednesday as investors digested Eurozone data and awaited fresh catalyst.The euro zone economy expanded at its fastest rate since May 2023 in October, breaking out of the subdued growth pattern seen earlier this year as service sector activity accelerated and demand conditions improved, a survey showed.The HCOB Eurozone Composite Purchasing Managers' Index, compiled by S&P Global, climbed to 52.5 in October from 51.2 in September, marking the 10th consecutive month of growth and reaching its highest level in 29 months. Italy and Ireland also recorded solid expansions at 53.1 and 53.7 respectively. France remained the only major euro zone economy in contraction territory, with its index falling to an eight-month low of 47.7. Looking ahead, Germany will release its Industrial Production and HCOB Construction PMI data ahead of the Eurozone’s Retail Sales and HCOB Construction PMI figures. Speeches from ECB officials Schnabel, De Guindos, Buch, and Lane are also on the agenda. Immediate resistance can be seen at 1.1539(38.2%fib), an upside break can trigger rise towards 1.1590(50%fib).On the downside, immediate support is seen at 1.1475(23.6%fib), a break below could take the pair towards 1.1462(Lower BB).
GBP/USD: Sterling edged higher against the dollar on Wednesday as investors positioned ahead of Thursday’s key Bank of England meeting. The central bank is widely expected to keep rates unchanged, though recent signs of easing inflation and slower wage growth have strengthened the case for a possible rate cut.A survey released Wednesday showed that output and new orders in the UK services sector rose in October, with business expectations for the next 12 months reaching their highest level since October 2024. The S&P Global UK Services PMI increased to 52.3 in October from 50.8 in September, surpassing the preliminary “flash” estimate of 51.1.The upbeat data from Britain’s dominant services industry is encouraging for Finance Minister Rachel Reeves, who has made economic growth a key priority ahead of potential tax increases in the November 26 budget. Sterling was last up 0.2% on the dollar at $1.3052. Immediate resistance can be seen at 1.3129(38.2%fib), an upside break can trigger rise towards 1.3163(Nov 3rd high).On the downside, immediate support is seen at 1.3000(Psychological level), a break below could take the pair towards 1.2977(Lower BB).
USD/CAD: The Canadian dollar weakened to a near seven-month low against its U.S. counterpart on Wednesday as doubts that the Federal Reserve would proceed with additional easing next month underpinned the greenback and after a key technical level was breached this week.A drop in the price of oil, one of Canada's major exports, added to headwinds for the Canadian currency. U.S. crude oil futures settled 1.6% lower at $59.60 a barrel, weighed by concerns of a possible global oil glut.Canada's services economy expanded in October for the first time in 11 months as businesses showed signs of adjusting to economic uncertainty, according to S&P Global's Canada services PMI data. The headline Business Activity Index rose to 50.5 last month from 46.3 in September.The loonie was trading 0.1% lower at 1.4115 per U.S. dollar, or 70.85 U.S. cents, after touching its weakest intraday level since April 9 at 1.4140.Immediate resistance can be seen at 1.4113(23.6 %fib), an upside break can trigger rise towards 1.4137(Higher BB).On the downside, immediate support is seen at 1.4055(Nov 5th low), a break below could take the pair towards 1.4022(38.2%fib).
USD/JPY: The U.S. dollar initially fell but regained some ground on Wednesday as investors digested the Bank of Japan’s September meeting minutes. The release revealed increasing support among policymakers for a potential rate hike, with two members advocating for an immediate increase.At the two-day policy meeting that ended on September 19, the BOJ’s nine-member board decided to keep rates at 0.5%, rejecting calls from the two hawkish members to raise them to 0.75%. The minutes highlighted discussions on the timing of any hike, weighing downside risks to growth against persistent inflation pressures, particularly from elevated food prices.Market participants are now turning their attention to this week’s key economic data, including wage and household spending figures, for further clues on the BOJ’s policy trajectory.Immediate resistance can be seen at 154.57(23.6%fib) an upside break can trigger rise towards 155.00 (Psychological level) .On the downside, immediate support is seen at 152.90 (38.2%fib) a break below could take the pair towards 152.98 (SMA20).
Equities Recap
European stocks ended modestly higher on Wednesday, mirroring gains in North American markets as optimism over potential AI-driven returns continued to shape investor sentiment.
UK's benchmark FTSE 100 closed up by 0.64 percent, Germany's Dax ended up by 0.42 percent, France’s CAC finished the day up by 0. 08 percent.
U.S. stocks rebounded on Wednesday as concerns over stretched tech valuations eased, while upbeat earnings reports and stronger-than-expected economic data lifted investor sentiment.
Dow Jones closed up by 0.48 percent, S&P 500 ended up by 0.37 percent, Nasdaq finished the day up by 0.65 percent.
Commodities Recap
Gold prices climbed more than 1% on Wednesday as investors sought safety in the metal, shrugging off stronger-than-expected U.S. private payrolls data.
Spot gold was up 1.2% at $3,977.94 per ounce by 10:57 a.m. ET. U.S. gold futures for December delivery rose 0.7% to $3,989.80 per ounce.
Oil prices fell over 1% on Wednesday, hitting a two-week low amid worries about a potential global supply glut, though signs of strong U.S. fuel demand helped cap deeper losses.
Brent crude futures closed 92 cents, or 1.43%, lower at $63.52 a barrel, while U.S. West Texas Intermediate crude settled 96 cents, or 1.59%, low at $59.60.
