Market Roundup
•US consumer spending increased solidly in October
•US dollar down nearly 1%, hits 2-week low
•US Continuing Jobless Claims: 1,907K, 1,910K forecast, 1,898K previous
•US Core Durable Goods Orders (MoM, Oct): 0.1%, 0.2% forecast, 0.4% previous
•US Core PCE Prices (Q3): 2.10%, 2.20% forecast, 2.80% previous
•US Corporate Profits (QoQ, Q3): 0.0%, 3.5% previous
•US Durable Goods Orders (MoM, Oct): 0.2%, -0.8% forecast, -0.4% previous
•US Durables Excluding Defense (MoM, Oct): 0.4%, -0.9% previous
•US GDP (QoQ, Q3): 2.8%, 2.8% forecast, 3.0% previous
•US GDP Price Index (QoQ, Q3): 1.9%, 1.8% forecast, 2.5% previous
•US GDP Sales (Q3): 3.0%, 3.0% forecast, 1.9% previous
•US Goods Orders Non-Defense Ex-Air (MoM, Oct): -0.2%, 0.5% forecast, 0.3% previous
•US Goods Trade Balance (Oct): -99.08B, -102.20B forecast, -108.23B previous
•US Initial Jobless Claims: 213K, 215K forecast, 215K previous
•US Jobless Claims 4-Week Avg: 217.00K, 218.25K previous
•US PCE Prices (Q3): 1.5%, 1.5% forecast, 2.5% previous
•US Real Consumer Spending (Q3): 3.5%, 3.7% forecast, 2.8% previous
•US Retail Inventories Ex Auto (Oct): 0.1%, 0.1% previous
•US Wholesale Inventories (MoM, Oct): 0.2%, 0.0% forecast, -0.2% previous
•US Chicago PMI: 40.2, 44.9 forecast, 41.6 previous
•US Core PCE Price Index (YoY, Oct): 2.8%, 2.8% forecast, 2.7% previous
•US Core PCE Price Index (MoM, Oct): 0.3%, 0.3% forecast, 0.3% previous
•US PCE Price Index (YoY, Oct): 2.3%, 2.3% forecast, 2.1% previous
•US PCE Price Index (MoM, Oct): 0.2%, 0.2% forecast, 0.2% previous
•US Pending Home Sales (MoM, Oct): 2.0%, -2.1% forecast, 7.5% previous
•US Pending Home Sales Index (Oct): 77.4, 75.9 previous
•US Personal Income (MoM, Oct): 0.6%, 0.3% forecast, 0.3% previous
•US Personal Spending (MoM, Oct): 0.4%, 0.4% forecast, 0.6% previous
•US Real Personal Consumption (MoM, Oct): 0.1%, 0.5% previous
•US Crude Oil Inventories: -1.844M, -1.300M forecast, 0.545M previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Foreign Bonds Buying: -966.9B previous
•23:50 Japan Foreign Investments in Japanese Stocks: 127.6B previous
•00:00 New Zealand ANZ Business Confidence (Nov): 65.7 previous
•00:00 New Zealand NBNZ Own Activity (Nov): 45.9% previous
•00:30 Australia Building Capital Expenditure (MoM, Q3): -3.8% previous
•00:30 Australia Plant/Machinery Capital Expenditure (QoQ, Q3): -0.5% previous
•00:30 Australia Private New Capital Expenditure (QoQ, Q3): 0.9%forecast, -2.2% previous
Looking Ahead Events And Other Release(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: the euro strengthened on Wednesday as investors digested the latest economic data and the potential impact of policies from the incoming U.S. administration, including tariff threats. The pre-Thanksgiving shakeout arrived as many in the market will also be considering the December slow-down that usually hits liquidity. A dump of U.S. data before the holiday shutdown produced mixed results, with October PCE inflation gauges matching expectations of firmer year-on-year price growth, pending home sales and initial jobless claims outperforming forecasts, and durable goods orders missing estimates.Second-estimate Q3 U.S. GDP also came in line with expectations. The euro was up 0.75% at $1.0565. Immediate resistance can be seen at 1.0616(50%fib), an upside break can trigger rise towards 1.0692(61.8%fib).On the downside, immediate support is seen at 1.0535(38.2%fib), a break below could take the pair towards 1.0436(23.6%fib)
GBP/USD: The pound strengthened on Wednesday as investors digested a slew of indicators that underscored U.S. economic resilience while investors assessed the risk that President-elect Donald Trump will start a tariff war no one will win. Revised data showed gross domestic product rose at a 2.8% rate in the third quarter, as expected and the same as last month's first estimate, did not much bolster the case for the Federal Reserve to ease again next month, although traders still leaned that way, lifting odds a bit to 67%. The Commerce Department's personal consumption expenditures price index climbed 0.2% in October, matching September's unrevised gain. In the 12 months through October, the PCE price index increased 2.3% after advancing 2.1% in September. Sterling strengthened 0.81% to $1.267. Immediate resistance can be seen at 1.2747(50%fib), an upside break can trigger rise towards 1.2774(Nov 13th high).On the downside, immediate support is seen at 1.2641 (38.2%fib), a break below could take the pair towards 1.2511(23.6%fib).
USD/CAD: The Canadian dollar extended its recovery from a 4-1/2-year low against the U.S. dollar on Wednesday, as investors bet on Canada avoiding the threatened U.S. trade tariffs through negotiations and focused on upcoming domestic GDP data. On Tuesday, the currency touched its weakest intraday level since April 2020 at 1.4177 after U.S. President-elect Donald Trump said he would impose a 25% tariff on imports from Canada and Mexico.Canadian third-quarter gross domestic product data, due on Friday, could offer clues on the pace of further interest rate cuts expected from the Bank of Canada. Economists forecast growth slowing to an annualized rate of 1%.The loonie was trading 0.2% higher at 1.4025 per U.S. dollar , after moving in a range of 1.4010 to 1.4077. Immediate resistance can be seen at 14069(38.2%fib), an upside break can trigger rise towards 1.4103(Higher BB).On the downside, immediate support is seen at 1.3981(50%fib), a break below could take the pair towards 1.3896 (61.8%fib).
USD/JPY: The dollar declined against the yen on Wednesday as Japanese yen strengthen on bets Bank of Japan may raise interest rates in December. A key indicator of Japan's service-sector inflation remained close to 3% in October, according to data released on Tuesday. This trend provides further evidence that conditions are aligning for a potential near-term interest rate hike by the Bank of Japan.Japan's services producer price index, which tracks the prices companies charge each other for services, increased by 2.9% in October compared to the previous year, according to data from the Bank of Japan.The data will be among factors the BOJ will scrutinise at its next policy meeting in December, when some analysts expect it to hike interest rates from the current 0.25%. Against the Japanese yen, the dollar weakened 1.3% to 151.11 withthe yen touching its strongest level versus the greenback in five weeks. Immediate resistance can be seen at 152.78 (38.2%fib) an upside break can trigger rise towards 153.28 ( (Daily high). On the downside, immediate support is seen at 150.78 (50%fib) a break below could take the pair towards 150.00(Psychological level).
Equities Recap
French stocks fell to a more than three-month low on Wednesday as investors expressed concerns over the fragile government's ability to pass its budget. Ongoing fears about potential U.S. tariffs also kept European automobile stocks under pressure.
UK's benchmark FTSE 100 closed up by 0.20 percent, Germany's Dax ended down by 0.18 percent, France’s CAC finished the day down by 0.72 percent.
Wall Street's main indexes closed lower on Wednesday, with the Nasdaq leading the declines, as technology stocks dropped on Thanksgiving Eve. Investors worried the Federal Reserve might be cautious about rate cuts following stubbornly strong U.S. inflation data.
Dow Jones closed down by 0.31% percent, S&P 500 closed down by 0.38% percent, Nasdaq settled down by 0.59% percent.
Commodities Recap
Oil prices fluctuated between gains and losses, having dropped on Tuesday following the confirmation of the Israel-Hezbollah ceasefire, after a sharper sell-off on Monday in anticipation of the agreement.
U.S. crude settled down 0.07% at $68.72 a barrel, while Brent ended at $72.83 per barrel, up 0.03% on the day.
Gold gained on Wednesday, recovering from a more than one-week low hit in the previous session, supported by a weaker dollar. However, it pared earlier gains after data revealed stalled progress in inflation, suggesting the U.S. Federal Reserve might tread carefully with further rate cuts.
Spot gold was up 0.3% at $2,638.90 per ounce, as of 01:41 p.m. ET (1841 GMT). U.S. gold futures settled 0.7% higher at $2,639.90.
