Market Roundup
•Australia Reserve Assets Total (Oct) 98,108.0B 92 forecast,954.0B previous
•New Zealand Credit Card Spending (YoY) 0.3% -3.1% previous
Looking Ahead Economic Data(GMT)
•07:45 French Business Survey (Nov): 95 forecast, 92 previous
•09:30 UK House Price Index (YoY) 2.9%forecast, 2.8% previous
•10:00 EU Belgium Consumer Confidence (Nov) 5 previous
•11:00 UK CBI Industrial Trends Orders (Nov) 25 forecast, -27 previous
Looking Ahead Events And Other Releases(GMT)
•09:00 ECB Financial Stability Review
Currency Forecast
EUR/USD: The euro eased on Thursday as dollar firmed as investors tempered hopes of aggressive rate cuts by the U.S. Federal Reserve. Heightened geopolitical risks triggered bythe Ukraine-Russia conflict also supported the greenback. Cautious remarks from Fed officials dented expectations ofaggressive rate cuts.Fed Governor Michelle Bowman on Wednesday expressed discomfort with the central bankcutting interest rates while inflation continues to run above its target.Odds of a December rate cut by the Fed have declined to 52% from 82% a week earlier, according to CME's FedWatch tool. Immediate resistance can be seen at 1.0611(38.2%fib), an upside break can trigger rise towards 1.0671(50%fib).On the downside, immediate support is seen at 1.0538`(23.6%fib), a break below could take the pair towards 1.0521(Lower BB)
GBP/USD: Sterling edged lower on Wednesday as dollar firmed on prospects of less aggressive interest rate cuts from the Federal Reserve. Markets were pricing in the Fed lowering borrowing costs by 25 basis points next month at 56%, down from 82.5% just a week ago, according to CME's FedWatch Tool. The dollar has rallied more than 2% since the Nov. 5 U.S. presidential election on bets Trump's policies could reignite inflation and temper the Fed's future rate cuts.At the same time, traders are sizing up what Trump's campaign pledges of tariffs mean for the rest of the world, with Europe and China both likely on the firing line. Immediate resistance can be seen at 1.2696(SMA 5), an upside break can trigger rise towards 1.2723(38.2%fib).On the downside, immediate support is seen at 1.2592 (23.6%fib), a break below could take the pair towards 1.2515(My 14th low)
AUD/USD: The Australian edged higher on Thursday as Australian dollar found support from bargain-hunting activity after its sharp drop on Wednesday. Traders appear to be seizing the opportunity to buy the currency at lower levels, following the recent decline. Despite the broader market challenges. At GMT 07:02, The Aussie was trading at 0.6515 further away from the recent three-month low of $0.6443. Immediate resistance can be seen at 0.6555(38.2%fib), an upside break can trigger rise towards 0.6564(SMA 21).On the downside, immediate support is seen at 0.6481(Nov 19th low), a break below could take the pair towards 0.6389(April 16th low).
USD/JPY: The dollar eased against the yen on Thursday as traders awaited more clarity on U.S. President-elect Donald Trump's proposed policies and sought to second-guess the prospects of less aggressive interest rate cuts from the Federal Reserve. poll showed most economists expect the Fed to cut rates at its December meeting, with shallower cuts in 2025 than expected a month ago due to the risk of higher inflation from Trump's policies Bank of Japan Governor Kazuo Ueda said on Thursday the central bank will seriously take into account foreign exchange-rate moves in compiling its economic and price forecasts. The dollar was down 0.51% at 154.63 yen Immediate resistance can be seen at 155.80(23.6%fib) an upside break can trigger rise towards 156.71 (Nov 15th high). On the downside, immediate support is seen at 154.53(Daily low) a break below could take the pair towards 153.63(21SMA).
Equities Recap
Asian equities fell on Thursday after AI darling Nvidia NVDA disappointed investors with slower revenue growth expectations
At GMT 07:10 ,China A50 was down by 0.07%, Japan’s Nikkei 225 was down by 0.96%, while Hang Seng was down 0.30%
Commodities Recap
Oil prices rose marginally on Thursday as geopolitical concerns over escalating tensions between Russia and Ukraine countered the impact from a bigger-than-expected increase in U.S. crude inventories.
Brent crude futures rose 16 cents, or 0.2%, to $72.97 as of 0408 GMT. U.S. West Texas Intermediate crude futures rose 16 cents, or 0.23%, to $68.91.
Gold prices rose for a fourth straight session on Thursday, driven by safe-haven demand amid escalating tensions in the Russia-Ukraine conflict, while investors awaited remarks from U.S. Federal Reserve policymakers on the interest rate outlook.
Spot gold was up 0.3% at $2,657.40 per ounce, as of 0547 GMT, hitting its highest since Nov. 11.U.S. gold futures rose 0.3% to $2,659.90.
