Market Roundup
•Singapore Core CPI (YoY) (Sep) 2.80%, 2.70% forecast, 2.70% previous
•Singapore (MoM) (Sep) 0.30%, N/A, 0.70% previous
•Singapore CPI (YoY) (Sep) 2.0%, 1.9% forecast, 2.2% previous
Looking Ahead Economic Data(GMT)
•09:00 UK 3-Year Treasury Gilt Auction 4.068% previous
•09:30 German 10-Years Bund Auction 2.080% previous
Looking Ahead Events And Other Releases(GMT)
• No events Ahead
Currency Forecast
EUR/USD: The euro eased on Wednesday as dollar continued to climb as expectations grew that the Federal Reserve will moderate its interest rate cut path. The greenback has strengthened for three consecutive weeks and is poised for its 15th gain in 17 sessions, driven by a series of positive economic data that have reduced expectations for the size and speed of Fed rate cuts, subsequently pushing U.S. Treasury yields higher. Markets are pricing in an 89.6% likelihood of a 25 basis point cut at the Fed's November meeting, with a 10.4% chance of the central bank keeping rates unchanged, according to CME's FedWatch Tool. Immediate resistance can be seen at 1.0816(SMA5 ), an upside break can trigger rise towards 1.0847(38.2%fib).On the downside, immediate support is seen at 1.0785(23.6%fib), a break below could take the pair towards 1.0700(Psychological level).
GBP/USD: Sterling hit a fresh 2-month low against the dollar on Wednesday as widening U.S.-UK rate differentials favored the dollar. Recent soft UK data and central bank rhetoric have shifted Bank of England (BoE) policy expectations from a hawkish stance relative to the Fed. This has caused sterling to drop from late September highs above 1.34 to current levels below 1.30, the lowest since mid-August.The dovish shift from the BoE coincides with the Fed signaling a more measured approach to rate cuts after its surprise 50 basis point reduction on September 18. Sterling edged down 0.04% to $1.2979. Immediate resistance can be seen at 1.3054(38.2%fib), an upside break can trigger rise towards 1.3123(50%fib).On the downside, immediate support is seen at 1.2967(Oct 22nd low), a break below could take the pair towards 1.2928 (Lower BB).
NZD/USD: The New Zealand dollar eased on Wednesday as dollar held firm on shifting expectations of the Federal Reserve being less aggressive in its easing.A series of strong economic reports from the U.S. has diminished expectations for aggressive monetary easing by the Federal Reserve, leading to a rise in the value of the dollar. At GMT 05:19, the Kiwi dollar dipped 0.1% to $0.6036, following a 0.2% rebound overnight that helped it recover from a two-month low of $0.6020. Immediate resistance can be seen at 0.6116(38.2%fib), an upside break can trigger rise towards 0.6161 (50%fib).On the downside, immediate support is seen at 0.6059 (23.6%fib), a break below could take the pair towards 0.6000(Psychological level).
USD/JPY: The dollar hit three month high against the yen on Wednesday as the dollar was on the rise again as investors were reluctant to place major bets ahead of a hotly contested U.S. election. Shifting expectations around how fast and deep the Federal Reserve will cut rates have also hurt risk sentiment, with traders now anticipating the U.S. central bank to be measured in its easing.That has taken U.S. Treasury yields to a three-month peak and the dollar to multi-month highs against the euro, sterling and the yen, which is now back at 150 per dollar levels, prompting verbal warnings from Japanese officials.The dollar hit a three-month high of 152.28 per yen. Immediate resistance can be seen at 152.49 (23.6 %fib), an upside break can trigger rise towards 153.00(Psychological level). On the downside, immediate support is seen at 150.55(5SMA), a break below could take the pair towards 150.82(38.2%fib)
Equities Recap
Japan's Nikkei share average fell for a third straight session on Wednesday as caution ahead of the country's upcoming lower house election results overshadowed any boost from a weaker yen.
The Nikkei N225 closed 0.8% lower at 38,104.86.
Commodities Recap
Oil prices fell on Wednesday after data showed that U.S. crude inventories rose more than anticipated but, the declines were moderated as the market closely monitored diplomatic efforts in the Middle East following Israel's ongoing attacks on Gaza and Lebanon.
Brent crude futures eased 50 cents, or 0.7%, to $75.54 a barrel by 0640 GMT. U.S. West Texas Intermediate crude futures CLc1 shed 50 cents, or 0.7%, to $71.24 a barrel.
Gold prices surged to a record high on Wednesday, as conflicts in the Middle East and uncertainty surrounding the upcoming U.S. election spurred demand for safe-haven assets.
Spot gold traded at $2,749.82 per ounce as of 0437 GMT, after hitting an all-time high of $2,750.21 earlier in the session.U.S. gold futures edged 0.2% higher to $2,764.00.
