Market Roundup
• Oil falls as U.S. inventories rise
•U.S. sales of single family homes rise
• Wall Steet hits session high
• US Aug New Home Sales (MoM) 7.1%,3.5% forecast,-8.6% previous
• US Aug New Home Sales 713K, 660K forecast, 666K previous
• Brazil CAGED Net Payroll Jobs 121.39K, 98.00K forecast, 43.82K previous
Looking Ahead - Economic Data (GMT)
No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
• 06:35 Japan BoJ Governor Kuroda Speaks
• 13:30 US FOMC Member Kaplan Speaks
• 13:30 Eurozone ECB President Draghi Speaks
• 13:45 UK BoE Gov Carney Speaks
• 14:00 US FOMC Member Bullard Speaks
• 15:45 US FOMC Member Clarida Speaks
• 15:45 US FOMC Member Daly Speaks
• 18:00 US FOMC Member Kashkari Speaks
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Wednesday, as the greenback recovered after declining on Tuesday .The dollar dropped on Tuesday after the announcement that the House of Representatives would initiate a formal impeachment inquiry and disappointing consumer confidence data. The euro was down 0.69 percent at $1.0944. An index that tracks the dollar versus a basket of six major currencies was up 0.70 at 99.02. Immediate resistance can be seen at 1.1022 (9 DMA), an upside break can trigger rise towards 1.1094 (50 DMA).On the downside, immediate support is seen at 1.0937 (Lower BB), a break below could take the pair towards 1.0900 (Psychological level).
GBP/USD: Britain's pound declined sharply against the dollar on Wednesday, as stronger dollar and Brexit concerns weighed on British currency. Investors were nervous that Britain was unlikely to leave the European Union without a deal by Oct. 31, Britain's exit from the EU, nearly three years in the making, is now in doubt because the British parliament cannot decide what exit terms it wants. The pound fell 1.1% to $1.2356, a two-week low against the greenback. It also weakened to a six-day low of 88.17 pence against the euro . Immediate resistance can be seen at 1.2460(9 DMA), an upside break can trigger rise towards 1.2586 (Higher BB).On the downside, immediate support is seen at 1.2331 (21 DMA), a break below could take the pair towards 1.2267 (50 DMA).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday, as oil prices slipped and the U.S. dollar was broadly stronger against most major peers. The U.S. dollar recovered against a basket of major currencies after being hit on Tuesday by the launch of a formal impeachment inquiry against U.S. President Donald Trump.Oil prices fell for a second day as U.S. crude inventories unexpectedly surged 2.4 million barrels in the week to Sept. 20. The Canadian dollar was last trading 0.2% lower at 1.3263 to the greenback, or 75.35 U.S. cents.Immediate resistance can be seen at 1.3256 (9 DMA), an upside break can trigger rise towards 1.3301 (200 DMA).On the downside, immediate support is seen at 1.3231 (50 DMA), a break below could take the pair towards 1.3200 (Psychological level).
USD/JPY: The dollar strengthened against Japanese yen on Wednesday, after President Donald Trump said a trade deal with China could happen sooner than expected. Trump made the remarks to reporters a day after delivering a stinging rebuke to China’s trade practices at the United Nations General Assembly, saying he would not accept a bad deal in U.S.-China trade negotiations. The dollar also benefited from upbeat home sales data. New home sales increased 7.1% to a seasonally adjusted annual rate of 713,000 units last month, boosted by a surge in activity in the South and West. The dollar was 0.68 higher versus the Japanese yen at 107.77. Strong resistance can be seen at 107.85 (100 DMA), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 107.22 (21 DMA), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares declined on Wednesday, as an impeachment inquiry into U.S. President Donald Trump and worries about U.S.-China trade relations kept investors from making bold bets.
UK's benchmark FTSE 100 closed down 0.02 percent, Germany's Dax ended down by 0.59 percent, France’s CAC finished the day down by 0.79 percent.
U.S. stock indexes rose on Wednesday after President Donald Trump said a trade deal with China could happen sooner than expected.
Dow Jones closed up by 0.61 percent, S&P 500 ended up by 0.62 percent, Nasdaq finished the day up by 1.05 percent.
Treasuries Recap
Yields on U.S. Treasury long-dated rose on Wednesday, bolstered by strong US data and comments by President Donald Trump about a fast tracking trade deal with China.
U.S. 10-year note yields rose to 1.721% from 1.635% late on Tuesday, after earlier hitting a two-week low of 1.63%. Yields on 30-year bonds were also higher at 2.134%, from 2.095% on Tuesday.
Commodities Recap
Gold dipped 2% on Wednesday, as political concern in the United States about impeachment inquiry kept investors cautious.
Spot gold fell 1.8% to $1,504.61 per ounce by 02:13 p.m. EDT (1813 GMT). Prices had earlier dropped as much as 2% to $1,501.55 an ounce.U.S. gold futures settled down 1.8% at $1,512.3 an ounce.
Oil fell more than 1% on Wednesday, after U.S. crude stockpiles unexpectedly rose and as Saudi Arabia maintained a faster-than-expected recovery of its oil production.
Brent crude futures settled at $62.39 a barrel, shedding 71 cents, or 1.1%, while U.S. West Texas Intermediate crude settled 80 cents, or 1.4%, lower at $56.49 a barrel.
