Market Roundup
•US PPI ex. Food/Energy/Transport (MoM) (Oct) 0.3%, 0.1% previous
•US PPI ex. Food/Energy/Transport (YoY) (Oct) 3.5%, 3.3% previous
•US Continuing Jobless Claims 1,873K, 1,880K forecast, 1,884K previous
•US Continuing Jobless Claims 1,873K, 1,880K forecast, 1,884K previous
•US Core PPI (MoM) (Oct) 0.3%, 0.3% forecast, 0.2% previous
•US Core PPI (YoY) (Oct) 3.1%, 3.0% forecast, 2.9% previous
•US Initial Jobless Claims 217K, 224K forecast, 221K previous
•US Jobless Claims 4-Week Avg. 221.00K, 227.25K previous
•US PPI (MoM) (Oct) 0.2%, 0.2% forecast, 0.1% previous
•US PPI (YoY) (Oct) 2.4%, 2.3% forecast, 1.9% previous
•US Natural Gas Storage 42B, 34B forecast, 69B previous
•US Crude Oil Inventories 2.089M, 0.400M forecast, 2.149M previous
•US Gasoline Inventories -4.407M, 1.000M forecast, 0.412M previous
•US 4-Week Bill Auction 4.510%, 4.515% previous
•US 8-Week Bill Auction 4.460%, 4.490% previous
Looking Ahead Economic Data (GMT)
•23:50 Japan GDP Capital Expenditure (QoQ) (Q3) -0.2% forecast, 0.8% previous
•23:50 Japan GDP External Demand (QoQ) (Q3) 0.1% forecast, -0.1% previous
•23:50 Japan GDP Price Index (YoY) (Q3) 2.8% forecast, 3.1% previous
•23:50 Japan GDP Private Consumption (QoQ) (Q3) 0.2% forecast, 0.9% previous
•01:30 China House Prices (YoY) (Oct) -5.8% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro slipped against the dollar on Thursday as dollar continued after U.S. economic data indicated the labor market remains solid while progress on tamping down inflation may be waning.The Labor Department said initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 217,000 for the week, slightly below expectations of economists polled by Reuters calling for 223,000 claims, suggesting the weak October government payrolls report was an anomaly.In the latest reading on inflation, the producer price index (PPI) for final demand rose 0.2% last month, matching expectations, after an upwardly revised 0.1% gain in September. The data comes after Wednesday's consumer price index (CPI) increased as expected in October amid higher costs for shelter such as rents. .Immediate resistance can be seen at 1.0595(38.2%fib), an upside break can trigger rise towards 1.0658(50%fib).On the downside, immediate support is seen at 1.0520`(23.6%fib), a break below could take the pair towards 1.0471(Lower BB)
GBP/USD: Sterling fell on Thursday as the dollar rose after U.S. data and comments from Federal Reserve Chair Jerome Powell indicated a slower pace of rate cuts from the central bank. The Labor Department reported that first claims for state unemployment benefits fell 4,000 to a seasonally adjusted 217,000 for the week, slightly lower than the 223,000 expected by economists, implying that the negative October government payrolls report was an outlier. In the most recent inflation data, the producer price index for final demand gained 0.2% last month, matching forecasts, following an upwardly revised 0.1% increase in September. Powell stated that continued economic growth, a strong job market, and inflation that stays above the 2% objective indicate the US central bank does not need to rush to cut rates. Immediate resistance can be seen at 1.2721(38.2%fib), an upside break can trigger rise towards 1.2789(50%fib).On the downside, immediate support is seen at 1.2637 (23.6%fib), a break below could take the pair towards 1.2624(Lower BB).
USD/CAD: The Canadian dollar weakened further beyond a key psychological level against its U.S. counterpart on Thursday, pressured by broad-based gains for the American currency and the potential for U.S. trade tariffs to hurt the domestic economy. Canada sends about 75% of its exports to the United States, including oil, which could escape protectionist trade measures, according to participants in Canada's energy industry .U.S. crude futures settled 0.4% higher at $68.70 a barrel, clawing back some recent declines for a third straight day. The loonie was trading 0.3% lower at 1.4035 to the U.S. dollar, its fifth straight day of declines. Immediate resistance can be seen at 1.4075 (23.6%fib), an upside break can trigger rise towards 1.4088 (Higher BB).On the downside, immediate support is seen at 1.3972 (38.2%fib A), a break below could take the pair towards 1.3892 (50%fib).
USD/JPY: The dollar rose sharply against the yen on Thursday as U.S. dollar continued its relentless march higher against yen as investors bet that higher trade tariffs and tighter immigration under the incoming Trump administration would fuel inflation, potentially slowing the Federal Reserve's interest rate cutting cycle. Federal Reserve governor Adriana Kugler said the central bank has made considerable progress in working to achieve its job and inflation goals, while stopping short of offering firm guidance over what that means for the near-term monetary policy outlook. Richmond Federal Reserve president Tom Barkin said high union wage settlements and the possibility of coming tariff increases are among the uncertainties that could make U.S. Federal Reserve officials more cautious about thinking they have won their battle against high inflation., The dollar strengthened 0.33% to 155.97 against yen . Immediate resistance can be seen at 156.53 (23.6 %fib) an upside break can trigger rise towards 157.07(Higher BB). On the downside, immediate support is seen at 155.36(Daily low) a break below could take the pair towards 154.93(38.2%fib).
Equities Recap
Europe's STOXX 600 bounced back with a 1% gain, driven by strong performances in the energy and technology sectors, while positive earnings reports added to the upbeat mood.
UK's benchmark FTSE 100 closed up by 0.51 percent, Germany's Dax ended down by 1.37 percent, France’s CAC finished the day up by 1.32percent.
Wall Street stocks fell on Thursday while the dollar advanced after U.S. data and comments from Federal Reserve Chair Jerome Powell pointed to a slower path of rate cuts from the central bank.
Dow Jones closed down by 0.47% percent, S&P 500 closed down by 0.60% percent, Nasdaq settled down by 0.63% percent.
Commodities Recap
Gold prices were subdued after hitting a two-month low on Thursday, pressured by a strong dollar rally, though traders have not lost confidence in a December rate cut following the latest U.S. economic data.
Spot gold fell 0.1% to $2,570.05 per ounce as of 02:00 p.m. ET (1900 GMT), touching its lowest level since Sept. 12. U.S. gold futures settled 0.5% lower at $2,572.90.
Oil prices closed slightly higher in choppy trading on Thursday, as a steep draw in U.S. fuel stocks outweighed oversupply concerns and demand worries stemming from a stronger dollar.
Brent crude futures settled 28 cents, or 0.4% higher at $72.56 a barrel, while U.S. West Texas Intermediate crude futures rose 27 cents, or 0.4% at $68.70. Both benchmarks had briefly dipped into negative territory during the trading session.
