Market Roundup
•Australia Wage Price Index (QoQ) (Q3) 0.8%, 0.9% forecast, 0.8% previous
•Australia Wage Price Index (YoY) (Q3) 3.5%, 3.6% forecast, 4.1% previous
Looking Ahead Economic Data(GMT)
• 10:10 EUR Italian 3-Year BTP Auction 2.68% previous
•10:10 EUR Italian 30-Year BTP Auction 4.04% previous
•10:10 EUR Italian 7-Year BTP Auction 3.19% previous
•11:00 EUR Portuguese CPI (YoY) (Oct) 2.3% forecast, 2.3% previous
•11:00 EUR Portuguese CPI (MoM) (Oct) 0.1% forecast, 0.1% previous
Looking Ahead Events And Other Releases(GMT)
•No Events ahead
Currency Forecast
EUR/USD: The euro slipped against the dollar on Wednesday as dollar gained ahead of crucial inflation data from the world's biggest economy. U.S. Consumer Price Index (CPI) data is due at 1330 GMT.Besides that, U.S. Producer Price index (PPI) and weekly jobless claims are due on Thursday, and retail sales data to end the week.Fed Chair Jerome Powell is scheduled to speak this week, ahead of U.S. Producer Price Index (PPI) data on Thursday and retail sales on Friday.Markets currently have about a 60% chance of another quarter basis point cut from the Fed priced in for December, down from around 84% a month ago, according to CME Group's FedWatch Tool.of crucial inflation data from the world's biggest economy. The euro was last down 0.09% at $1.0615. Immediate resistance can be seen at 1.0732(Daily high), an upside break can trigger rise towards 1.0761(38.2%fib).On the downside, immediate support is seen at 1.0600`(Psychological level), a break below could take the pair towards 1.0583(Lower BB)
GBP/USD: Sterling edged lower on Wednesday as dollar firmed ahead of key U.S. inflation data later in the day.The dollar is reaping the benefits of Republican Donald Trump's victory in the U.S. presidential election last week, sitting not far from Tuesday's high of 106.17, its strongest since May 1. Meanwhile, Republicans inched closer to gaining full control of Congress, which would give the president-elect power to advance his agenda. The Trump trade has also pushed up U.S. Treasury yields as markets wager the Federal Reserve may temper the extent of its future rate cuts US. Sterling fell as much as 0.09% to $1.2735, its lowest since Aug. 15.Immediate resistance can be seen at 1.2877(Daily high), an upside break can trigger rise towards 1.2910(38.2%fib).On the downside, immediate support is seen at 1.2798 (23.6%fib), a break below could take the pair towards 1.2773 (Lower BB).
AUD/USD: The Australian dollar hovered near a three-month low on Wednesday, weighed down as the U.S. dollar gained strength from rising Treasury yields. On the data front, Australian wages rose at the slowest annual pace since late 2022 in the third quarter amid an influx of new workers and an easing in inflation, adding somewhat to the case for cuts in interest rates. Figures from the Australian Bureau of Statistics on Wednesday showed its wage price index rose 0.8% in the September quarter, just under market forecasts for a 0.9% rise. At GMT 12:08, the Australian dollar was down 0.14 % at 0.6523 against US dollar. Immediate resistance can be seen at 0.6537(Daily high), an upside break can trigger rise towards 0.6571(38.2%fib).On the downside, immediate support is seen at 0.6509 (23.6%fib), a break below could take the pair towards 0.6481(Lower BB).
USD/JPY: The dollar strengthened against the yen on Wednesday as traders looked ahead to inflation data for clues about Fed rate-cut pace.A hot reading of the U.S. consumer price index (CPI) later in the day could see those odds reduced further, with economists projecting a 0.3% monthly rise in the core gauge. Japan's wholesale inflation accelerated in October at the fastest annual pace in more than a year as renewed yen falls pushed up import costs for some goods, complicating the Bank of Japan's decision on how soon to raise interest rates. The dollar edged up to as high as 154.94 yen for the first time since July 30 before last changing hands at 154.56 yen. Immediate resistance can be seen at 155.48(23.6 %fib) an upside break can trigger rise towards 156.16(Higher BB). On the downside, immediate support is seen at 154.54(Daily low) a break below could take the pair towards 153.37(38.2%fib).
Equities Recap
Asian stocks slumped on Wednesday as a sharp rise in U.S. bond yields unnerved investors ahead of key inflation data that could inform the pace of Federal Reserve policy easing.
Hong Kong's Hang Seng slid 0.47%, while Japan's Nikkei and South Korea's Kospi sagged 1.55% and 2.64%, respectively
Commodities Recap
Gold prices edged up on Wednesday as investors sought bargains following sharp declines in the previous session, with focus shifting to U.S. inflation data, which could offer further clarity on the Federal Reserve's future monetary policy direction.
Spot gold firmed 0.5% at $2,610.99 per ounce by 0437 GMT, after hitting its lowest since Sept. 20 on Tuesday. U.S. gold futures rose 0.4% at $2,617.20.
Oil prices edged up on Wednesday on signs of near-term supply tightness but remained near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.
Brent futures rose 17 cents, or 0.24%, to $72.06 a barrel by 0420 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained 14 cents, or 0.21%, at $68.26.
