Market Roundup
•US NY Empire State Manufacturing Index (Oct) 10.70,-1.80 forecast,-8.70 previous
•Canada Manufacturing Sales (MoM) (Aug) -1.0%, -1.5% forecast, 2.2% previous
• Canada Wholesale Sales (MoM) (Aug) -1.2%,-1.3%forecast, 1.7% previous
Looking Ahead Economic Data(GMT)
• 00:30 Australia Employment Change (Sep) 20.5Kforecast, -5.4K previous
• 00:30 Australia Full Employment Change (Sep) -40.9K previous
• 00:30 Australia Participation Rate (Sep) 66.8%forecast, 66.8% previous
• 00:30 Australia Reserve Assets Total (Sep) 105.9B previous
• 00:30 Australia Unemployment Rate (Sep) 4.3% forecast,4.2% previous
• 04:30 Japan Tertiary Industry Activity Index (Aug) 1.40 previous
Looking Ahead Events And Other Releases(GMT)
• 01:30 Japan BoJ Tamura Speaks
Currency Summaries
EUR/USD : The euro firmed on Wednesday as the dollar weakened following dovish comments from Federal Reserve Chair Jerome Powell. Powell on Tuesday left the door open to further rate cuts and indicated that the end of the central bank’s long-running balance sheet reduction effort may be approaching.His remarks, interpreted by markets as dovish, reinforced expectations for additional easing this year, with around 48 basis points of rate cuts priced in by December. French central bank governor Francois Villeroy de Galhau urged France to focus on long-term deficit reduction, while Fitch warned that suspending pension reforms increases the risk of reversal after 2027. The euro rose 0.35% to $1.1646 after gaining 0.3% in the previous session. Immediate resistance can be seen at 1.16630(Oct 13th high), an upside break can trigger rise towards 1.1696(38.2%fib).On the downside, immediate support is seen at 1.1525(50%fib), a break below could take the pair towards 1.1506(Lower BB)
GBP/USD: The pound strengthened on Wednesday as U.S. dollar weakened after comments from Federal Reserve Chair Jerome Powell bolstered wagers on an interest rate cut this month. Powell left the door open to cutting rates at the Fed's policy meeting on October 28-29 by saying the labor market remains mired in its low-hiring, low-firing doldrums, and that the absence of official economic data due to the government shutdown has not prevented policymakers from being able to assess the economic outlook, at least for now. Meanwhile, Britain’s Finance Minister Rachel Reeves said she is considering both tax increases and spending cuts in her November 26 budget, confirming widespread expectations in line with her pledges to balance the country’s books. Money markets are placing an 87% chance of no change at the BoE's next meeting on November 6.Immediate resistance can be seen at 1.3368(Oct 14th high), an upside break can trigger rise towards 1.3442(38.2%fib).On the downside, immediate support is seen at 1.3260(50%fib), a break below could take the pair towards 1.3226(Lower BB).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday as oil prices fell and investors assessed prospects of a sectoral trade deal between the U.S. and Canada.Canada has been negotiating with the U.S. in key sectors such as steel, aluminum and autos that have faced punishing U.S. tariffs. The United States-Mexico-Canada trade agreement, which has shielded much of Canada's exports from U.S. tariffs, is up for joint review in 2026.The price of oil, one of Canada's major exports, settled 0.7% lower at $58.27 a barrel, pressured by escalating U.S.-China trade tensions and the International Energy Agency's prediction of a supply surplus in 2026.Domestic data for August showed wholesale trade falling by 1.2% from July and manufacturing sales down 1%. Immediate resistance can be seen at 1.4075 (23.6%fib), an upside break can trigger rise towards 1.4095 (Higher BB).On the downside, immediate support is seen at 1.4001 (38.2%fib), a break below could take the pair towards 1.3951(38.2%fib).
USD/JPY: The U.S. dollar dipped against Japanese yen on Wednesday after Federal Reserve Chair Jerome Powell’s dovish comments fueled speculation of further rate cuts. Powell indicated that additional reductions remain possible and suggested that the Fed’s long-running balance sheet reduction program may soon conclude.Meanwhile, U.S. Trade Representative Jamieson Greer said the timing of potential 100% tariffs on Chinese exports, set for November 1, depends on Beijing, though he acknowledged it may be difficult for China to find a resolution. A speech by Bank of Japan policymaker Naoki Tamura and government coalition talks are slated for Thursday. Immediate resistance can be seen at 153.42(23.6%fib) an upside break can trigger rise towards 154.00 (Psychological level) .On the downside, immediate support is seen at 150.69 (38.2%fib) a break below could take the pair towards 149.79 (SMA 20).
Equities Recap
European stocks climbed on Wednesday, boosted by a rally in luxury goods shares led by France’s LVMH, which eased worries over slowing global growth and tariff-related pressures on companies.
UK's benchmark FTSE 100 closed down by 0.30percent, Germany's Dax ended down by 0.23 percent, France’s CAC finished the day up by 1.99 percent.
The S&P 500 rose on Wednesday, boosted by gains in Morgan Stanley and Bank of America following strong quarterly results, as investors kept an eye on rising U.S.-China trade tensions.
Dow Jones closed down by 0.04% percent, S&P 500 closed up by 0.40% percent, Nasdaq settled upby 0.66% percent.
Commodities Recap
Gold prices surpassed $4,200 per ounce for the first time on Wednesday, extending a record rally as expectations of interest rate cuts and geopolitical concerns drove investors toward the safe-haven metal.
Spot gold rose 1.3% to $4,195.35 per ounce as of 1:57 p.m. ET (1757 GMT), after hitting an all-time high of $4,217.95 earlier.
Oil prices slipped on Wednesday to a five-month low, weighed down by escalating U.S.-China trade tensions and the International Energy Agency’s forecast of a 2026 supply surplus.
Brent crude futures fell 48 cents, or 0.8%, to settle at $61.91 a barrel. U.S. West Texas Intermediate (WTI) futures fell 43 cents, or 0.7%, to settle at $58.27. Those were the lowest settlements for both benchmarks since May 7 for a second day in a row.
