Market Roundup
- US jobless claims unchanged in latest week, steady US jobless claims consistent w/healthy labor market.
- U.S. job openings (JOLTS) rise to 5.526 million in Sept.
- Fed's Yellen: Fed must weigh monetary policy impact in light of new tools.
- Fed's Dudley: Waiting too long on inflation heightens risks.
- Fed's Dudley conditions for FOMC to begin to normalize monetary policy could soon be satisfied, we continue to fall short of our 2% inflation objective.
- Fed's Evans: May be well into '16 before hike justified, substantial costs to premature normalization.
- Fed's Lacker: Fed needs to be careful not to get into meeting-by-meeting suspense on rate rises.
- Fed's Lacker: wants to begin winding down Fed BS as soon as possible after rate hike.
- Fed's Bullard stretches hawk credentials with worries about "permazero" rates.
- IMF note: US Fed should wait with liftoff to see firm inflation signs, int'l community should support China in transition to more sustainable growth.
- BOE's Haldane: case for rising rates still some way from being made.
- Gold dips to near 6-year low, under pressure from Fed.
- OPEC sees oil supply hole in 2016 as low prices curb rival output.
Looking Ahead - Economic Data (GMT)
- 02:00 New Zealand RBNZ Offshore Holdings* Oct 64.10%-previous
- 02:00 Japan TR IPSOS PCSI Nov 42.2- previous
- 02:00 China TR IPSOS PCSI Nov 63.1- previous
- 02:00 Australia TR IPSOS PCSI Nov 50.7- previous
- 04:30 Japan Industrial Output Rev*Sep 1.00%- previous
- 04:30 Japan Capacity Utilization Index Change MM* Sep -0.90%- previous
Looking Ahead - Events, Other Releases (GMT)
- No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.0776 levels and currently trading at 1.0809 levels. The pair has made session high at 1.0829 and hit lows at 1.0765 levels. The U.S. dollar slipped lower against euro on Thursday as traders booked profits from its volatile rise in late US session, sending other major currencies higher. The U.S. dollar had surged almost 3.0 percent against the euro so far in November after a better than expected U.S. jobs numbers released on Oct. 28 boosted the case for a Federal Reserve interest-rate hike in December. That has pushed traders to back short-term trades on the euro. Traders have kept a close eye on whether the Fed in December will revise rates for the first time in nearly a decade, as it is more like to be revised due to strong jobs data. The dollar fell 0.34 percent against the euro to $1.0780 per euro and was down 0.25 percent against the Swiss franc at 1.0021 francs. To the upside, immediate resistance can be seen at 1.0847. To the downside, immediate support level is located at 1.0750 levels.
GBP/USD is supported in the range of 1.5156 and currently trading at 1.5230 levels. It reached session high at 1.5232 and hit low at 1.5204 levels. Sterling edged higher against the dollar on Thursday, after comments from the European Central Bank chief brought into focus the divergent monetary policy outlooks between Britain and the euro zone. ECB President Mario Draghi told European lawmakers that inflation had slowed in the euro zone, mainly due to falling oil prices and the delayed impact from a firmer euro, keeping alive high chances of more policy accommodation next month. Sterling declined sharply against the dollar in recent days after the BoE postponed rate hike plans while a better than U.S. jobs numbers kept alive the hopes for rate hike in December. Against the dollar, sterling was steady at $1.5233, having risen past $1.52 on Wednesday and nearly 1 percent higher than a 7-month low of $1.5027 struck last Friday. To the upside, immediate resistance can be seen at 1.5245. To the downside, immediate support level is located at 1.5202 levels.
USD/JPY is supported around 122.00 levels and currently trading at 121.61 levels. It to hit session high at 123.00 and made session lows at 122.55 levels. The US dollar declined against Japanese's Yen on Thursday after Fed's central bankers commented on rate hike plans. U.S. Federal Reserve officials lined up to express their view on December interest rate hike plans, with one key central banker saying the risk of waiting too long was now roughly in balance with the risk of moving too soon to normalize rates after seven years near zero. Meanwhile, Jobless claims held steady at levels consistent with a strengthening labor market and job openings rose in September. The data continued to support the rate hike plans by the Fed's in December, leading investors to believe the session's early moves were likely just a function of traders cashing in on short positions on the euro and yen. To the upside, immediate resistance can be seen at 123.00. To the downside, immediate support level is located at 122.12 levels.
USD/CAD is supported at 1.3240 levels and is trading at 1.3280 levels. It has made session high at 1.3342 and lows at 1.3274 levels. The Canadian dollar edged lower against the U.S. dollar, after crude oil prices continued edge lower, as concern about global growth lingered even as European Central Bank President Mario Draghi kept the door open to further stimulus. The sharp drop in China's October bank lending fed concern about the global growth outlook. It follows weak trade, inflation and industrial production data from China this week that has weighed on commodity related currencies. Meanwhile, Canadian home prices jumped in October. The index, which measures price changes for repeat sales of single-family houses, showed national home prices rose 0.1 percent last month from September and increased 5.6 percent from a year earlier. The Canadian dollar was trading at C$1.3318 to the greenback. The currency's strongest level of the session was C$1.3225, while its weakest level was C$1.3338. To the upside, immediate resistance can be seen at 1.3300. To the downside, immediate support level is located at 1.3270 levels.
Equities Recap
European stocks took its biggest fall in six weeks on Thursday, as weakness in U.S. stocks and commodity prices combined with poor corporate earnings dragged the stocks lower.
UK's benchmark FTSE 100 closed down by 1.7 percent, the pan-European FTSEurofirst 300 ended the day down by 1.5 percent, Germany's Dax ended down by 1.1 percent, France's CAC finished the day down by 1.9 percent.
U.S. stock declined to lowest in over a month on Thursday as lower commodity prices weighed on energy and materials stocks and comments by a Federal Reserve policymaker hinted at an interest-rate rise next month.
Dow Jones closed down by 1.44 percent, S&P 500 ended down by 1.40 percent, Nasdaq finished the day down by 1.21 percent.
Treasuries Recap
U.S. Treasuries prices slipped on Thursday as selling linked to more corporate supply and $16 billion of 30-year bonds was mitigated by some safe-haven demand spurred by a sharp decline on Wall Street.
In late Thursday trading, benchmark 10-year Treasuries notes were down 2/32 in price to yield 2.322 percent, up 1 basis point from Tuesday.
The 30-year bond was little changed in price for a yield of 3.097 percent, up fractionally on the day.
Commodities Recap
Crude prices hit 6-weeks lows on Thursday after the U.S. government reported a stockpile build four times above market expectations and OPEC said its current output could result in a daily surplus of more than 500,000 barrels by next year.
Brent futures settled down $1.75, or 3.8 percent, at $44.06 a barrel. The tumble of the past week has left Brent less than $ 2away from its August lows a and a new 6-1/2 year bottom.
U.S. crude futures finished down $1.8, or 2.8 percent, to $41.75.its lowest in August was $ 37.75.
Gold slipped to its lowest level since early 2010 on Thursday, as the glittering metal came under pressure from expectations the U.S. Federal Reserve is on track to raise interest rates next month for the first time in nearly a decade.
Spot gold breached technical support at its July low of $1,077 an ounce, falling 1 percent to $1,074.26, the lowest since February 2010 and the eleventh day of losses out of the last 12. It was down 0.3 percent at $1,082.26 an ounce at 2:40 p.m. EST (1940 GMT).
U.S. gold futures for December delivery settled down $3.90 an ounce at $1,081.00.
