Market Roundup
- EUR/USD -0.18%, USD/JPY -0.47%, GBP/USD -0.12%, EUR/GBP -0.08%
- DXY -0.02%, DAX -2.03%, FTSE -1.76%, Brent -1.27%, Gold 0.44%
- DE Nov Gfk consumer Sentiment, 10.6, 10.5 f'cast, 10.6 prev
- Guarding stability, China likely to slow yuan's slide to 7 per dlr-sources
- Euro zone inflation expectations unchanged despite growth slowdown : ECB survey
- Euro zone money markets push back rate hike bets to December 2019
- ECB's Draghi alarm over Italian banks "improper" - League lawmaker
- FR Sep Consumer Confidence, 95, 94 f'cast, 94 prev
- Bank of Italy to publish shortly an assessment of how rising government bond yields are affecting Italian banks -source
- Japan and China on Friday signed a currency swap arrangement of up to $30 billion
Economic Data Ahead
- (0830 ET/1230 GMT) US Q3 GDP Advance, 3.3% f'cast, 4.2% prev
- (1000 ET/1400 GMT) US Oct U Mich Sentiment Final, 99.0 f'cast, 99.0 prev
Key Events Ahead
- (1000 ET/1400 GMT) ECB President Mario Draghi delivers a keynote presentation in Brussels
- (1015 ET/1415 GMT) ECB Executive Board Member Benoit Coeure speaks in Paris
FX Beat
DXY: Dollar index hits high of 96.79 at the time of writing . It is in bullish phase and major sell-off in global stock market is upporting upside. Short term trend is bullish as long as support 96 (7- day MA) holds. Markets eye US GDP data.
EUR/USD: The single currency under pressure, Draghi fails to boost confidence. EURUSD has lost more than 250 pips in the past ten days. EURUSD is currently trading around 1.13720. In the near term major resistance is around 1.14329 and any break above targets 1.1478 (61.8% fib)/1.1500. The pair should break 1.1550 for minor jump till 1.16217. Any bullish continuation only above 1.16220. On the lower side, near term support is around 1.13500 and any violation below targets 1.1300. Extreme weakness only below 1.1300.
GBP/USD: Cable hits fresh 2-month lows, Brexit uncertainties continue to dent the sentiment surrounding the British Pound. The bearish pressure remained unabated for the third consecutive session. We see a Bullish Gartley Pattern formation on charts. Near term resistance 1.2865 and any break above 1.2920/1.2965/1.3000. Major support is around 1.2780 and any break below targets 1.2740/126890.
USD/JPY: Risk-off mood benefits safe-haven status and prompts fresh selling in USD/JPY. Focus now on the release of advance US GDP growth figures for fresh impetus. The major was down 0.37% at the time of writing. Technicals support further weakness in the pair. Upside remains capped at 21-EMA at 112.48. Break above targets 20-DMA at 112.78. On the down side, close below 55-EMA raises scope for dip till 110-EMA at 111.46.
USD/CHF: USDCHF trades higher after breaking major resistance at 1.000 level. The near term resistance is around 1.0020 and any break above targets 1.00680 high made on Jul 13th 2018. Any break above 1.00680 confirms further bullishness. On the lower side, near term low made yesterday 0.9950 will be acting as major support and any break below targets 0.9905 (23.6% fib)/0.9840-50 (89- day EMA and 55- day EMA).
Equities Recap
European markets sink, track decline in U.S. stock futures. The pan-European STOXX 600 index was down 1.29 percent at 350.48 points, while the FTSEurofirst 300 index was down 1.59 percent at 1,387.71 points.
Britain's FTSE 100 was down 1.24% at 6,917.84 points, while mid-cap FTSE 250 was down 0.98 percent at 18,350.91 points.
Germany's DAX was up 1.94 percent at 11,087.39 points; France's CAC 40 was down 2.27 percent at 4,917.99 points.
Commodities Recap
Oil on track for a 3rd consecutive weekly loss. Oversupply worries despite Iran sanctions and slump in stock markets cloud the outlook for fuel demand. Brent crude oil was down 70 cents at $76.19 per barrel by 0740 GMT. U.S. crude was 70 cents lower at $66.63, set for a 3.5 percent loss this week.
Gold on track to rise for the fourth straight week, up 0.7 percent for the week. Spot gold was up 0.3 percent at $1,234.92 an ounce at 0736 GMT. Palladium was up 0.3 percent at $1,102.75 an ounce. Silver rose 0.3 percent to $14.64 per ounce, and platinum was down 0.5 percent at $827.0 an ounce.
Treasuries Recap
U.S.: The U.S. Treasuries jumped Friday as investors expect to see a fall in the country’s gross domestic product (GDP) for the third quarter of this year, scheduled to be released today by 12:30GMT. But the expenditure breakdown might well signal a slightly less positive report, with inventory adjustments likely to account for the perhaps more than 2ppts of growth, with a weak net export performance in particular weighing heavily on final sales, Daiwa Capital Markets reported. The yield on the benchmark 10-year Treasuries plunged nearly 5-1/2 basis points to 3.083 percent, the super-long 30-year bond yields slumped 3 basis points to 3.316 percent and the yield on the short-term 2-year traded nearly 5-1/2 basis points lower at 2.810 percent.
EUR: The German bunds climbed during European session Friday European Central Bank (ECB) President Mario Draghi maintained pessimism over the ongoing global political chaos in its monetary policy meeting, held yesterday. Markets will also be awaiting the governor’s speech, scheduled for today as well, by 14:00GMT for further direction in the debt market. The German 10-year bond yields, which move inversely to its price, jumped 3-1/2 basis points to 0.361 percent, the yield on 30-year note climbed 2-1/2 basis points to 1.005 percent and the yield on short-term 2-year surged nearly 2 basis points to -0.667 percent.
AUD: Australian government bonds remained narrowly mixed on the last trading day of the week Friday as investors remained side-lined amid a muted trading session that witnessed data of little economic significance. Further, the global stock market rout that started off lately also started to show signs of recovery in the overnight session. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, hovered around 2.611 percent, the yield on the long-term 30-year bond dipped nearly 1basis point to 3.108 percent and the yield on short-term 2-year rose nearly 1/2 basis point to 2.000 percent.
