Market Roundup
•US Oct Core CPI (YoY) 6.3%, 6.5% forecast, 6.6% previous
•US Oct CPI (MoM) 0.4%, 0.6% forecast, 0.4% previous
•US Oct Core CPI (MoM) 0.3%, 0.5%forecast, 0.6%previous
•US Oct CPI (YoY) 7.7%, 8.0% forecast, 8.2% previous
•US Oct Core CPI Index 299.47, 298.66 previous
•US CPI Index, n.s.a. 298.01,298.58 forecast, 296.81 previous
•US Oct Real Earnings (MoM) -0.1%, -0.1% previous
•US Oct CPI, n.s.a (MoM ) 0.41%, 0.22% previous
•US Initial Jobless Claims225K ,220K forecast, 217K previous
•US Continuing Jobless Claims 1,493K, 1,475K forecast, 1,485K previous
•US Jobless Claims 4-Week Avg. 218.75K, 218.75K previous
•US Natural Gas Storage 79B, 84B forecast, 107B previous
•US Oct Cleveland CPI (MoM) 0.5%, 0.7% previous
•US 4-Week Bill Auction 3.580% ,3.600% previous
•US Oct. Federal Budget Balance-88.0B , -90.0B forecast,-430.0B previous
Looking Ahead - Economic Data (GMT )
•23:50 Japan Oct PPI (YoY ) 8.8% forecast,- 9.7% previous
•00:30 Australia ANZ Job Advertisements (MoM) -0.5% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose on Thursday as dollar dipped after U.S. consumer prices rose less than expected last month and pointed to underlying inflation having peaked, data that markets cheered as it may allow the Federal Reserve to ease up on aggressively hiking interest rates.The consumer price index rose 0.4% in October to match the prior month's increase, the Labor Department said. Economists polled by had forecast the CPI would advance 0.6%. Immediate resistance can be seen at 1.0226(23.6%fib), an upside break can trigger rise towards 1.0256 (Higher BB).On the downside, immediate support is seen at 1.0110 (38.2%fib), a break below could take the pair towards 1.0016(50%fib).
GBP/USD: Sterling was set for its biggest daily gain since January 2017 against a weakening U.S. dollar on Thursday after U.S. consumer prices rose less than expected, opening the way for the Federal Reserve to slow the pace of its interest rate hikes.Investors are now waiting for Prime Minister Rishi Sunak and his finance minister Jeremy Hunt to announce their first budget programme on Nov. 17. The new government is likely preparing to announce major tax increases and spending cuts. Sterling gained 1.6% on the day against the dollar to trade at $1.0170. Immediate resistance can be seen at 1.1725 (23.6%fib), an upside break can trigger rise towards 1.1804(Higher BB).On the downside, immediate support is seen at 1.1561(5DMA), a break below could take the pair towards 1.1484(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a seven-week high against its U.S. counterpart on Thursday as U.S. inflation pressures cooled and Bank of Canada Governor Tiff Macklem said the economy could avoid a major rise in the unemployment rate. The greenback fell sharply against a basket of major currencies, bond yields tumbled and Wall Street rallied after U.S. consumer prices rose less than expected last month, data that may allow the Federal Reserve to ease up on aggressively hiking interest rates. The loonie was trading 1.2% higher at 1.3339 to the greenback, after touching its strongest level since Sept. 20 at 1.3334. Immediate resistance can be seen at 1.3430 (38.2%fib), an upside break can trigger rise towards 1.3512 (50%fib).On the downside, immediate support is seen at 1.3303 (23.6%fib), a break below could take the pair towards 1.3226 (Lower BB).
USD/JPY: The dollar declined against the yen on Thursday after data showed U.S. inflation cooled more than expected last month. Data showed the U.S. consumer price index rose 0.4% in October after climbing by the same margin in September. Economists polled by Reuters had forecast the CPI would advance 0.6%. In the 12 months through October, the CPI increased 7.7% after rising 8.2% on the same basis in September. Excluding the volatile food and energy components, core CPI increased 0.3% last month after gaining 0.6% in September. Economists expected core CPI to gain 0.6%. .Strong resistance can be seen at 143.27(23.6%fib), an upside break can trigger rise towards 144.33(5DMA).On the downside, immediate support is seen at 140.36 (38.2%fib), a break below could take the pair towards 140.00(Psychological level).
Equities Recap
European shares clocked an 11-week closing high on Thursday as a slower-than-expected rise in U.S. consumer prices strengthened hopes of less aggressive interest rate hikes from the Federal Reserve going ahead.
The UK's benchmark FTSE 100 closed up by 1.09 percent, Germany's Dax ended up by 3.51 percent, and France’s CAC finished the up by 1.95 percent.
The S&P 500 and Nasdaq jumped on Thursday, racking up their biggest daily percentage gains in over 2-1/2 years as a sign of slowing inflation in October sparked speculation the Federal Reserve might become less aggressive with interest rate hikes..
Dow Jones closed up by 3.71 percent, S&P 500 ended up 5.54 percent, Nasdaq finished the day up by 7.35 percent.
Commodities Recap
Gold prices rallied over 2% on Thursday to a more than two-month high as data showed U.S. inflation cooled off a bit in October, lifting hopes that the Federal Reserve would adopt a less aggressive approach to rate hikes.
Spot gold climbed 2.7% to $1,751.61 per ounce by 13:44 EDT (1844 GMT). U.S. gold futures settled up 2.3% at $1,753.7.
Oil prices settled 1% higher on Thursday, ending lower for the first time this week, as tamer-than-expected U.S. inflation data offset worries that renewed COVID-19 curbs in China would hurt fuel demand.
Brent crude settled 1.1% higher at $93.67, a $1.02 gain. U.S. West Texas Intermediate crude rose 0.8% to settle at $84.67, or 64 cents higher.
