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America's Roundup: Dollar little changed as U.S.-China trade talk outcome awaited. Wall Street slids,Gold prices gain, Oil prices fall on large U.S. crude build-November 7th,2019

Market Roundup

• Brazil Oct Auto Production (MoM) 16.6%, 8.3% previous             

• Brazil Oct Auto Sales (MoM) 7.9%, 3.3% previous            

• Russia CPI (YoY) 3.8%, 3.8% forecast, 4.0% previous

• Russia CPI (MoM) -0.2%,-0.2% forecast, -0.2% previous

• US Nonfarm Productivity (QoQ) (Q3) -0.3%,0.9% forecast, 2.5% previous           

• US Unit Labor Costs (QoQ) (Q3) 3.6%, 2.2% forecast, 2.4% previous

• Canada Oct Ivey PMI 51.8, 55.8 previous

• Canada Ivey PMI 48.2, 49.3 forecast, 48.7 previous

Looking Ahead - Economic Data (GMT)

• 21:30 Australia Oct AIG Construction Index 42.6 previous

• 23:00 Japan Nov Reuters Tankan Index -5 previous         

• 00:30 Australia Sep Exports (MoM) -3% previous

• 00:30 Australia Sep Imports (MoM) 0% previous

• 00:30 Australia Sep Trade Balance 5.000B forecast, 5.926B previous                         

Looking Ahead - Events, Other Releases (GMT)

• 23:30 US FOMC Member Williams Speaks 

• 10:00   Eurogroup Meeting       

• 12:00   BoE MPC Meeting Minutes

• 12:30 BoE Gov Carney Speaks

• 16:05   FOMC Member Kaplan Speaks               
• 22:10   FOMC Member Bostic Speaks   

Currency Summaries

EUR/USD: The euro edged lower against the U.S. dollar on Wednesday,as weak euro zone economic figures weighed on euro. Data showed Germany’s services sector barely grew in October, while euro zone business activity expanded slightly faster than expected last month but remained close to stagnation. The euro was down 0.03 percent at $1.1070.The dollar index, which measures the greenback against six major currencies, was 0.03 percent higher at 97.94. Immediate resistance can be seen at 1.1092  (21 DMA), an upside break can trigger rise towards 1.1119 (100 DMA).On the downside, immediate support is seen at 1.1037 (50 DMA), a break below could take the pair towards   1.1000 (Psychological level).

GBP/USD: The pound declined against the dollar Wednesday, as investors calculated the risks the upcoming general election poses to Britain’s ability to complete its exit from the European Union before Jan. 31, its latest departure deadline. Traders also waited to see what the Bank of England (BoE) might have to say regarding the impact of Brexit on the British economy, after its meeting on Thursday. Uncertainty around Britain’s departure from the EU has left a strong mark on business confidence and weak economic data makes it increasingly likely that BoE’s next move will be to cut interest rates, rather than an increase .The British currency was last trading at  $1.2850, down  0.24 percent on the day.  Immediate resistance can be seen at 1.2898 (5 DMA), an upside break can trigger rise towards 1.3076 (Higher BB).On the downside, immediate support is seen at 1.2801(21 DMA), a break below could take the pair towards 1.2696 (200 DMA).

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday, trading in a narrow range as investors awaited the outcome of trade talks between the United States and China and Canada's jobs report loomed at the end of the week. Canada is a major exporter of commodities, including oil, so its economy could benefit from an improved outlook for global trade. Canada's employment report for October is due on Friday, which can help guide expectations for the Bank of Canada policy outlook. At (1926 GMT), the Canadian dollar was trading 0.18% lower at 1.3181 to the greenback. Immediate resistance can be seen at 1.3212 (50 DMA), an upside break can trigger rise towards 1.3257 (Higher BB).On the downside, immediate support is seen at 1.3150  (21 DMA), a break below could take the pair towards 1.3126  (9 DMA).

USD/JPY: The dollar declined against the Japanese yen on Wednesday, as U.S. productivity data disappointed and investors turned a bit cautious about U.S.-China trade talks. Traders and investors hope a preliminary deal will roll back at least some of the punitive tariffs Washington and Beijing have imposed on each other’s goods, but it remained uncertain when or where U.S. President Donald Trump will meet Chinese President Xi Jinping to sign the agreement. At 1915 GMT, the dollar was 0.23 percent lower versus the Japanese yen at 108.90. Strong resistance can be seen at 109.23 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.66 (9 DMA), a break below could take the pair towards 108.00(Psychological level).

Equities Recap

European stocks scaled a fresh four-year peak on Wednesday driven by a surge in shares of consumer-focused companies that helped offset declines in autos and miners, while investors awaited new developments from U.S.-China trade talks.

The UK's benchmark FTSE 100 closed up by 0.12 percent, Germany's Dax ended up by 0.24 percent, and France’s CAC finished the day up  by 0.33 percent.

The S&P 500 and Dow Jones indexes opened near record highs on Wednesday, as a largely upbeat corporate earnings season and optimism around a U.S.-China trade truce drive a Wall Street rally.

At (19:36 GMT) Dow Jones was down by 0.03 percent, S&P 500 was down by 0.01percent, Nasdaq was down by 0.35 percent.

Treasuries Recap

Benchmark U.S. Treasury prices gained on Wednesday, following a three-day selloff, as investors waited on further signals that the United States and China will reach a deal to de-escalate their trade war.

Benchmark 10-year notes gained 12/32 in price to yield 1.825%, down from 1.865% late Tuesday. The notes have technical support at around 1.85%.

Commodities Recap

Gold prices rose on Wednesday, a day after sliding 2%, as doubts about a U.S.-China trade breakthrough buoyed demand for the safe-haven metal.

Spot gold rose 0.4% to $1,489.95 per ounce at 12:50 p.m. EST (1750 GMT). U.S. gold futures were up 0.6% at $1,492.

Oil prices slipped on Wednesday after a much larger build in U.S. crude inventories than expected.

Brent crude   was down 42 cents to $62.54 a barrel by 11:05 a.m. EST (1605 GMT). West Texas Intermediate crude  lost 12 cents at $57.11 per barrel.

By Srikanth G
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