Market Roundup
•German CPI (MoM) (Oct) 0.3% ,0.3%forecast,0.2%previous
•German CPI (YoY) (Oct) 2.3%, 2.3% forecast,2.4% previous
• German HICP (MoM) (Oct) 0.3%, 0.3% forecast,0.2% previous
• German HICP (YoY) (Oct) 2.3% , 2.3% forecast,2.4% previous
• German WPI (MoM) (Oct) 0.3%, 0.1% forecast,0.2% previous
• German WPI (YoY) (Oct) 1.1%, 1.2% previous
•Italian Industrial Production (MoM) (Sep) 2.8% , 1.5% forecast, -2.7% previous
•Italian Industrial Production (YoY) (Sep) 1.5%,-0.5% forecast,-3.0% previous
Looking Ahead Economic Data(GMT)
•13:30 Canada Building Permits (MoM) (Sep) 0.8% forecast,-1.2% previous
•13:55 US Redbook (YoY) 5.7% previous
Looking Ahead Events And Other Release(GMT)
•14:20 US FOMC Member Williams Speaks
•15:20 US Fed Waller Speaks
Currency Forecast
EUR/USD : The euro edged lower on Wednesday as investors awaited a final resolution to the prolonged U.S. government shutdown. The U.S. Senate on Monday approved a deal to restore federal funding, ending the record-long closure that had disrupted food aid programs, left hundreds of thousands of federal employees unpaid, caused air travel delays, and postponed the release of key economic data.The deal now awaits passage in the House of Representatives, where Speaker Mike Johnson has indicated plans to hold a vote as early as Wednesday. Once approved, the bill will move to President Donald Trump for his signature, potentially bringing the historic shutdown to a close.On the data front, German inflation slowed slightly in October to 2.3%, the federal statistics office said on Wednesday, confirming preliminary data.Inflation, or consumer prices harmonised to compare with other European Union countries, stood at 2.4% year-on-year in September. 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 edged lower against the dollar on Wednesday as signs of a deteriorating UK labour market reinforced expectations of a Bank of England rate cut next month.Official data on Tuesday showed the UK unemployment rate rising to 5.0%, while wage growth moderated over the three months to September. The Office for National Statistics reported that wage growth excluding bonuses eased to 4.6% year-on-year, down from the previous period.The softer labour and pay figures added weight to the case made by dovish BoE policymakers for a rate reduction at the December 18 meeting, as mounting evidence points to a slowing economy. The central bank kept its benchmark rate unchanged at 4.0% last week but signaled a readiness to ease policy if economic conditions weaken further. 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 fresh 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
European shares climbed to a record high on Wednesday, led by financial stocks, as optimism over a potential end to the historic U.S. government shutdown lifted sentiment despite mixed corporate results.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading down at 0.08 percent, Germany's Dax was up by 1.22 percent, France’s CAC was last up by 1.26 percent.
Commodities Recap
Gold prices held steady on Wednesday as investors awaited a U.S. House vote on a deal to reopen the government, which could bring clarity to upcoming economic data and the Federal Reserve’s rate outlook.
Spot gold was steady at $4,124.17 per ounce, as of 1022 GMT. U.S. gold futures for December delivery rose 0.3% to $4,130 per ounce.
Oil prices slipped nearly 1% on Wednesday, pressured by concerns over excess supply, though optimism that an end to the record.
Brent crude futures slipped 60 cents, or 0.9%, to $64.56 a barrel by 1007 GMT after gaining 1.7% on Tuesday. U.S. West Texas Intermediate crude was down 62 cents, or around 1%, at $60.42 a barrel, after climbing 1.5% in the previous session.
