Market Roundup
•UK Public Sep Sector Net Cash Requirement 4.688B,5.834B previous
•French Oct Business Survey 107, 105, 106 previous
•Italian Aug Industrial Sales (YoY) 13.80%,19.10% previous
•Italian Aug Industrial Sales (MoM) 0.80%,0.90% previous
•Belgium Oct Consumer Confidence 4,8 previous
•UK Oct CBI Industrial Trends Orders 9, 18 forecast, 22 previous
Looking Ahead - Events, Other Releases (GMT)
•12:30 US Continuing Jobless Claims 2,550K forecast, 2,593K previous
•12:30 US Jobless Claims 4-Week Avg 334.25K previous
•12:30 US Initial Jobless Claims 300K forecast, 293K previous
•12:30 Canada ADP Nonfarm Employment Change 39.4K previous
•12:30 Canada Sep New Housing Price Index (MoM ) 0.7% previous
•12:30 US Oct Philly Fed CAPEX Index 23.60 previous
•12:30 US Oct Philadelphia Fed Manufacturing Index 25.0 forecast, 30.7 previous
•12:30 US Oct Philly Fed New Orders 15.9 previous
•12:30 US Oct Philly Fed Employment 26.3 previous
•12:30 US Oct Philly Fed Prices Paid 67.30 previous
•12:30 US Oct Philly Fed Business Conditions 20.0 previous
•14:00 US Sep Leading Index (MoM) 0.4% forecast, 0.9% previous
•14:00 US Sep Existing Home Sales (MoM) -2.0% previous
•14:00 US Sep Existing Home Sales 6.09M forecast, 5.88M previous
•14:30 US Natural Gas Storage 90B forecast, 81B previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Thursday as risk appetite weakened across global markets . Across the Atlantic, the Fed is widely expected to announce the beginning of asset tapering at its meeting in November 2021. However, it is not expected to begin interest rate hikes until 2022. Meanwhile, commodity currencies led gains against the dollar after oil prices climbed to their highest levels in many years. The euro was down 0.1% at $1.16395, still close to Tuesday’s three-week peak of $1.1670. Immediate resistance can be seen at 1.1658 (38.2%fib), an upside break can trigger rise towards 1.1708(50%fib).On the downside, immediate support is seen at 1.1592 (23.6%fib), a break below could take the pair towards 1.1500(Psychological level).
GBP/USD: Sterling dipped below one-month highs on Thursday, tracking a similar move in risk-oriented currencies which lost some momentum against the dollar after a rally fuelled by rising prices for commodities.The pound has risen about 3% against the dollar since late September, on the back of expectations of an imminent interest rate hike by the Bank of England. A dip in September inflation is seen unlikely to stop the Bank of England from raising interest rates soon. The pound was down 0.17%, at $1.3799 at 0830 GMT, slightly below a one-month high of $1.3834 reached on Tuesday. Immediate resistance can be seen at 1.3803(23.6%fib),an upside break can trigger rise towards 1.3856(Higher BB).On the downside, immediate support is seen at 1.3726(38.2%fib), a break below could take the pair towards 1.3687(50%fib).
USD/CHF: The dollar dipped against Swiss franc on Thursday as investors assessed whether higher inflation would prompt central banks to raise interest rates sooner than expected. Two U.S. Federal Reserve officials said on Wednesday while the central bank should begin winding down its stimulus measures, it was too soon for interest rate hikes. Immediate resistance can be seen at 0.9253(50%fib), an upside break can trigger rise towards 0.9284(61.8%fib).On the downside, immediate support is seen at 0.9216(38.2%fib), a break below could take the pair towards 0.9188(Higher BB).
USD/JPY: The dollar dipped against yen on Thursday as fresh worries about the weakening Chinese property sector increased demand for yen. China Evergrande Group has secured an extension on one defaulted bond, financial news provider REDD reported on Thursday, as the company scrambles for cash before a grace period for a dollar bond coupon payment expires on Saturday.Late on Wednesday Evergrande said a deal to sell a $2.6 billion stake in its property services unit failed and its shares fell 12% in Hong Kong on Thursday. Strong resistance can be seen at 114.55(23.6%fib), an upside break can trigger rise towards 115.00(Psychological level).On the downside, immediate support is seen at 113.95(38.2%fib), a break below could take the pair towards 113.50(50%fib).
Equities Recap
European stocks retreated from six-week highs on Thursday, with miners leading the declines on renewed concerns about China's property sector, while mixed quarterly updates from companies dampened risk appetite.
At (GMT 10:46 ),UK's benchmark FTSE 100 was last trading down at 0.49 percent, Germany's Dax was down by 0.11 % percent, France’s CAC was last down by 0.39 percent.
Commodities Recap
Gold prices edged higher on Thursday as concerns over persistently higher inflation buoyed the safe-haven metal’s appeal, though elevated U.S. Treasury yields confined the bullion to a narrow range.
Spot gold was up 0.2% to $1,785.01 per ounce at 0931 GMT. U.S. gold futures were up 0.1% at $1,786.70.
Oil hit a three-year high above $86 a barrel on Thursday driven by tight supply and a global energy crunch, although prices eased as some investors took profits on signs the rally is looking overstretched.
Brent crude rose as high as $86.10, the highest since October 2018, but by 1022 GMT was down 89 cents, or 1%, to $84.93. U.S. West Texas Intermediate crude fell 64 cents, or 0.8%, to $82.78.
