Market Roundup
•US Crude Oil Inventories -0.961M,2.200M forecast,3.524M previous
•US EIA Refinery Crude Runs (WoW) 0.600M, -1.167M previous
•US Crude Oil Imports 0.656M ,-1.754M previous
•US Cushing Crude Oil Inventories -0.770M, -0.703M previous
•US Gasoline Inventories -2.147M ,-0.950Mforecast,-0.267M previous
Looking Ahead Economic Data(GMT)
•00:30 Australia NAB Quarterly Business Confidence -1 previous
Looking Ahead Events and Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro edged higher against the dollar on Wednesday as risk sentiment waned amid rekindled trade concerns.Investors are awaiting clarity on a potential meeting next week between President Trump and Chinese President Xi Jinping, which could have significant implications for U.S.-China trade relations and global market sentiment.Market participants are focused on Friday’s U.S. September CPI data, which is expected to offer important signals regarding inflationary pressures and potential interest rate moves by the Fed. Friday's U.S. Consumer Price Index (CPI) report is expected to show that core inflation held at 3.1% in September. Immediate resistance can be seen at 1.1662(50%fib), an upside break can trigger rise towards 1.1728(Oct 17th high).On the downside, immediate support is seen at 1.1561(61.8%fib), a break below could take the pair towards 1.1523(Lower BB).
GBP/USD: The pound fell to a one-week low on Wednesday after inflation unexpectedly held steady at 3.8%, missing forecasts from both economists and the Bank of England. Official data showed that headline inflation and a key core measure of price growth were unchanged in September, offering limited relief to Finance Minister Rachel Reeves ahead of her November budget. Annual consumer price inflation remained at 3.8% for the third consecutive month the highest among advanced economies. The International Monetary Fund projects that UK inflation will stay the highest among G7 nations through 2025 and 2026, complicating the Bank of England’s plans to cut interest rates to support the slowing economy. The BoE expects inflation to gradually decline, reaching its 2% target only between April and June 2027. Immediate resistance can be seen at 1.3386(SMA 20), an upside break can trigger rise towards 1.3399(SMA 20).On the downside, immediate support is seen at 1.3294(23.6%fib), a break below could take the pair towards 1.3265(Lower BB).
USD/CAD: The Canadian dollar strengthened to a near two-week high against the U.S. dollar on Wednesday, supported by rising oil prices and growing optimism over a potential trade agreement between the United States and Canada. On Tuesday, Canadian Prime Minister Mark Carney expressed caution after a newspaper reported he might soon sign a trade d on steel and aluminum with the United States. The two sides have been in talks for weeks on a potential metals deal.The price of oil , one of Canada's major exports, increased 2.6% to $58.72 a barrel on growing U.S. energy consumption and hopes of progress for a U.S. trade deal with China and India. Meanwhile, investors expect the Bank of Canada to cut interest rates further at a policy decision next Wednesday. Last month, the central bank lowered its benchmark rate to a three-year low of 2.50%.Immediate resistance can be seen at 1.4040(23.6 %fib), an upside break can trigger rise towards 1.4080(Higher BB).On the downside, immediate support is seen at 1.3981(Daily low), a break below could take the pair towards 1.3948(38.2%fib).
USD/JPY: The dollar edged lower on Wednesday as the yen gained slightly as traders assessed Japan’s potential stimulus measures and their impact on monetary policy dynamics. Sanae Takaichi, the first female leader of the ruling Liberal Democratic Party, won Tuesday’s lower house vote to become prime minister. Her support for fiscal stimulus and looser monetary policy has kept investors cautious and complicates the Bank of Japan’s efforts to raise rates. Takaichi, an advocate for loose fiscal and monetary policy, said on Tuesday that it was up to the Bank of Japan to decide the specifics of monetary policy.New finance minister Satsuki Katayama said on Wednesday that it is necessary for the government and the Bank of Japan to coordinate to make economic and monetary policies effective.The BoJ is scheduled to announce its latest policy decision on October 30. Futures imply about a 20% chance of a quarter-point rate hike to 0.75%. Immediate resistance can be seen at 152.19(Oct 23rd high) an upside break can trigger rise towards 153.00 (Psychological level) .On the downside, immediate support is seen at 150.69 (38.2%fib) a break below could take the pair towards 150.38 (SMA 20).
Equities Recap
Europe’s main indexes eased on Wednesday, with downbeat earnings from L’Oréal and Hermès curbing recent market optimism.
UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended down by 0.74 percent, France’s CAC finished the day down by 0.63 percent.
U.S. equities slipped on Wednesday as renewed trade tensions weighed on sentiment, following reports that the U.S. may impose new export curbs on China. Losses deepened after Netflix posted weaker-than-expected earnings.
Dow Jones closed down by 0.71 percent, S&P 500 ended down by 0.53 percent, Nasdaq finished the day by 0.93 percent.
Commodities Recap
Gold prices fell on Wednesday to a near two-week low, following their sharpest single-day drop in five years in the previous session, as investors booked profits ahead of key U.S. inflation data due this week.
Spot gold was down 1.7% at $4,054.34 per ounce, as of 01:42 p.m. ET (1742 GMT), after rising to as much as $4,161.17 earlier in the session. U.S. gold futures for December settled 1.1% lower at $4,065.40 per ounce.
Oil prices extended gains after Wednesday’s settlement as the U.S. announced new Ukraine-related sanctions against Russia, specifically targeting its oil companies, heightening supply concerns.
Brent crude futures were up $3.03 or 4.94% at $64.35 after settlement at 6 p.m. EDT (2200 GMT) and U.S. West Texas Intermediate crude futures climbed $1.42 or 2.43% to $59.92.
