Market Roundup
• Australia Home Loans (MoM) (Q3) 4.7%,2.5% forecast,2.2% previous
•Japan Machine Tool Orders (YoY) (Oct) 16.8%,9.9% forecast,8.1% previous
Looking Ahead Economic Data(GMT)
• 09:00 Italian Industrial Production (MoM) (Sep) 1.5% forecast, -2.4% previous
• 09:00 Italian Industrial Production (YoY) (Sep) -0.5% forecast,-2.7% previous
Looking Ahead Events And Other Release(GMT)
•No Events Ahead
Currency Forecast
EUR/USD : Euro edged lower on Wednesday as investors looked forward to an end to the U.S. government shutdown.The U.S. Senate passed a deal on Monday to restore federal funding after a record-long shutdown that has disrupted food benefits for millions, left hundreds of thousands of federal workers unpaid, snarled air traffic, and delayed the release of government economic data.The deal still needs approval in the House of Representatives, where Speaker Mike Johnson has said he wants a vote as soon as Wednesday. It will then go to U.S. President Donald Trump to be signed into law. Immediate resistance can be seen at 1.1593(SMA 20), an upside break can trigger rise towards 1.1642(50%fib).On the downside, immediate support is seen at 1.1475(23.6%fib), a break below could take the pair towards 1.1462(Lower BB).
GBP/USD: Sterling slipped against the dollar on Wednesday as the greenback strengthened on expectations that an imminent end to the U.S. government shutdown and the resumption of key economic data could pave the way for a Federal Reserve rate cut next month.The U.S. Senate on Monday approved a compromise deal to end the country’s longest-ever government shutdown, which had triggered a data blackout and left policymakers without critical information on jobs and inflation. Recent figures showed the U.S. economy shed jobs in October, while consumer sentiment in early November fell to its lowest level in three and a half years.Meanwhile, Fed Governor Stephen Miran said on Monday that a 50 basis-point rate cut could be warranted in December, citing signs of labor market weakness and easing inflation pressures.Immediate resistance can be seen at 1.3198(38.2%fib), an upside break can trigger rise towards 1.3243(SMA 20).On the downside, immediate support is seen at 1.3000(Psychological level), a break below could take the pair towards 1.2977(Lower BB).
AUD/USD: The Australian dollar eased on Wednesday as markets assessed prospects of a possible resolution to the U.S. government shutdown.The focus now turns to a key vote in the U.S. House of Representatives that could extend government funding until January 30, potentially easing short-term fiscal concerns. Earlier this week, the U.S. Senate approved an agreement to restore funding, effectively ending the record-long government shutdown that had disrupted food assistance programs, delayed air travel, halted pay for hundreds of thousands of federal workers, and postponed the release of key economic data.Looking ahead, investors are focused on Australia’s October employment report, with analysts expecting a gain of 20,000 jobs and an unemployment rate of 4.4%, a release that could influence near-term direction for the Aussie . Immediate resistance can be seen at 0.6543(50%fib), an upside break can trigger rise towards 0.6594 (Higher BB).On the downside, immediate support is seen at 0.6473(61.8%fib), a break below could take the pair towards 0.6440(Lower BB)
USD/JPY: The U.S. dollar hit nine month high against yen on Wednesday as hopes of a U.S. government reopening improved market sentiment, prompting investors to unwind safe-haven positions in favor of riskier assets.Market participants grew more confident that U.S. lawmakers would reach an agreement to restore funding, easing concerns over prolonged fiscal uncertainty and supporting broader risk appetite.The yen also faced further headwinds from expectations of greater fiscal largesse in Japan, after Prime Minister Sanae Takaichi said she would work on setting a new fiscal target extending through several years to allow more flexible spending. Japan’s Prime Minister Sanae Takaichi has called on the Bank of Japan to take a measured approach to raising interest rates, standing in stark contrast to the tightening bias of U.S. Fed officialsn. Immediate resistance can be seen at 154.58(23.6%fib) an upside break can trigger rise towards 155.00 (Psychological level) .On the downside, immediate support is seen at 152.90 (38.2%fib) a break below could take the pair towards 152.98 (SMA20).
Equities Recap
Asian stocks advanced on Wednesday as optimism grew that the U.S. Congress would end the federal shutdown, while traders sought direction amid a continued lack of government data.
Hang Seng was up 0.74% ,South Korea’s KOSPI traded up 1.07% ,Japan’s Nikkei 225 was up 0.49%
Commodities’ Recap
Gold prices slipped on Wednesday as a firmer U.S. dollar and profit-taking weighed on the metal, following its near three-week high on expectations of further Federal Reserve rate cuts.
Spot gold was down 0.2% at $4,116.65 per ounce, as of 0640 GMT, after hitting its highest since October 23 on Tuesday.
U.S. gold futures for December delivery edged 0.1% higher to $4,121.70 per ounce.
Oil prices edged lower on Wednesday but retained most of the prior session’s gains, supported by optimism that an end to the record U.S. government shutdown could lift demand in the world’s top oil consumer.
Brent crude futures slipped 22 cents, or 0.34%, to $64.94 a barrel by 0625 GMT after gaining 1.7% on Tuesday. U.S. West Texas Intermediate crude was down 22 cents, or 0.36%, to $60.83 a barrel, after climbing 1.5% in the previous session.
