Market Roundup
•UK Trade Sep Balance -14.74B ,-14.30B forecast, -14.93B previous
• UK Sep Trade Balance Non-EU -9.10B,-8.40B previous
• UK Sep GDP (QoQ) (Q3) 1.3%,1.5% forecast, 5.5% previous
• UK Sep Construction Output (YoY) 7.2%, 6.9% forecast, 10.1% previous
• UK Sep Manufacturing Production (YoY) 0.1%,3.1% forecast, 4.1% previous
• UK Sep Industrial Production (MoM) -0.4%, 0.2% forecast, 0.8% previous
• UK Sep Manufacturing Production (MoM) 0.1%,0.2% forecast, 0.5% previous
• UK Sep GDP (YoY) (Q3) 6.8% forecast, 23.6% previous
• UK Sep Industrial Production (YoY) -0.4%, 3.1% forecast, 3.7% previous
• UK Sep Business Investment (QoQ) (Q3) 0.4%, 2.6% forecast, 4.5% previous
• Irish Oct HICP (MoM ) 0.8%, 0.4% previous
•Irish Oct CPI (YoY) 5.1%,3.7% previous
•Irish Oct HICP (YoY) 5.1%, 3.8% previous
Looking Ahead Economic Data (GMT)
•14:00 UK NIESR Monthly GDP Tracker 1.5% previous
•16:30 US 4-Week Bill Auction 0.055% previous
•16:30 US 8-Week Bill Auction 0.095%0.095%
Looking Ahead Economic Data (GMT)
•12:15 ECB's Lane Speaks
•16:00 ECB's Schnabel Speaks
Fxbeat
EUR/USD: The euro declined on Thursday as dollar rose after the strongest U.S. inflation reading in over three decades fuelled expectations of Fed interest rate hikes next year. U.S. consumer price data released on Wednesday showed the biggest gain in four months, lifting the annual increase to 6.2%, the strongest year-on-year rise since November 1990 and following a 5.4% leap in September. The dollar pushed the euro below $1.15, leaving the next major chart support level down at $1.12. Immediate resistance can be seen at 1.1522(38.2%fib), an upside break can trigger rise towards 1.1544(5DMA).On the downside, immediate support is seen at 1.1455 (23.6%fib), a break below could take the pair towards 1.1400(Psychological level).
GBP/USD: Sterling fell to its lowest level of 2021 against the dollar on Thursday as the British economy appeared to lose momentum and a surge in U.S. inflation boosted the greenback amid bets that the Federal Reserve would hike interest rates faster than expected. Data released by the Office for National Statistics showed Britain's economy grew by 0.6% in September but estimates for previous months were revised lower, leaving the economy still smaller than it was in February 2020. On Thursday, sterling fell 0.24% versus the dollar to $1.3365, its lowest since December 2020.Immediate resistance can be seen at 1.3438 (38.2%fib), an upside break can trigger rise towards 1.3484(50%fib).On the downside, immediate support is seen at 1.3362(23.6%fib), a break below could take the pair towards 1.3300(Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as dollar was boosted by big jump in U.S. consumer prices. Data on Wednesday showing U.S. consumer prices surged at the fastest pace since 1990 last month reverberated across global markets. U.S. consumer prices accelerated in October as Americans paid more for gasoline and food, leading to the biggest annual gain in 31 years, more signs that inflation could stay uncomfortably high well into 2022 amid snarled global supply chains. Immediate resistance can be seen at 0.9139 (38.2%fib), an upside break can trigger rise towards 0.9176 (50%fib).On the downside, immediate support is seen at 0.9101 (23.6%fib), a break below could take the pair towards 0.9076 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as after the hottest U.S. inflation reading in a generation encouraged bets on interest rate hikes.U.S. consumer prices grew last month at their fastest annual pace since 1990, data showed, and traders think the Federal Reserve could respond by lifting interest rates faster than in Europe or Japan. The yen extended a sharp reversal of recent gains to fall to 114.15 per dollar close to the Japanese currency's four-year low of 114.69 reached last month. Strong resistance can be seen at 114.16 (23.6%fib), an upside break can trigger rise towards 114.57(Higher BB).On the downside, immediate support is seen at 113.60(38.2% fib), a break below could take the pair towards 113.44(5DMA).
Equities Recap
European stocks were little changed on Thursday after concerns about U.S. inflation spike offset some relief around property developer China Evergrande and a slew of corporate earnings.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.36 percent, Germany's Dax was up by 0.13 percent, France’s CAC was last up by 0.07 percent.
Commodities Recap
Oil prices dropped to $82 a barrel on Thursday, extending sharp falls triggered by concerns that rising U.S. inflation could prompt Washington to release more strategic crude stockpiles to drive down prices.
Brent crude futures lost 64 cents, or 0.77%, to $82 a barrel by 1200 GMT after rising to $83.37 in morning trade. U.S. West Texas Intermediate (WTI) futures were down 79 cents, or 1%, at $80.55.
