Market Roundup
• US Trade Balance (Aug) -59.60B, -61.30B forecast,-78.20B previous
• US Atlanta Fed GDPNow (Q4) 4.2%, 4.0% forecast ,4.0% previous
• US Crude Oil Inventories -3.426M,-0.600M forecast ,6.413M previous
• US Gasoline Inventories 2.327M-0.200M forecast, -0.945M previous
Looking Ahead Economic Data(GMT)
• 00:30 Australia Reserve Assets Total (Oct) 107,964.0B previous
•01:00 China PBoC Loan Prime Rate (Nov) 3.50% forecast, 3.50% previous
•01:15 China PBoC Loan Prime Rate 3.00% forecast, 3.00% previous
Looking Ahead Events And Other releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro dipped against the dollar on Wednesday as markets digested the minutes from the Federal Reserve’s latest meeting. The minutes from the October 28–29 session showed policymakers cautioning that lower borrowing costs could risk undermining efforts to contain inflation, which has remained above the Fed’s 2% target for four and a half years.Fed Chair Jerome Powell emphasized in his post-meeting press conference that a rate cut at the December 9–10 meeting was not guaranteed. Meanwhile, the U.S. Bureau of Labor Statistics announced it would not release the October employment report, as the recent government shutdown had prevented the collection of household survey data. The dollar index , which measures the greenback's strength against a basket of six currencies, rose 0.59% to 100.17. The euro fell 0.47% to $1.1526. Immediate resistance can be seen at 1.1571(38.2%fib), an upside break can trigger rise towards 1.1600(Psychological level).On the downside, immediate support is seen at 1.1480(23.6%fib), a break below could take the pair towards 1.1425(Lower BB).
GBP/USD: Sterling edged lower against the dollar on Wednesday after data showed UK consumer price inflation eased in October. Consumer price inflation fell to 3.6% in October from September's joint 18-month high of 3.8%, official figures showed on Wednesday, as expected by the BoE and economists.The inflation data cemented expectations that the BoE could cut interest rates in December.Sterling was down 0.71% against the dollar at 1.3050, briefly touching its lowest since Friday when British markets were whipped around as speculation swirled around the highly anticipated November 26 budget, which remains the key event for sterling this month. Immediate resistance can be seen at 1.3198(38.2%fib), an upside break can trigger rise towards 1.3243(SMA 20).On the downside, immediate support is seen at 1.3000(Psychological level), a break below could take the pair towards 1.2977(Lower BB).
USD/CAD: The Canadian dollar fell to a 12-day low against the U.S. dollar on Wednesday as oil prices declined and the cancellation of October’s U.S. jobs report dampened expectations of a rate cut by the Federal Reserve next month. The U.S. Bureau of Labor Statistics said it would not publish the October employment report, instead combining it with November’s data, which is scheduled for release on December 16 after the Fed’s December 9–10 policy meeting.Oil, one of Canada’s key exports, settled 2.1% lower at $59.44 a barrel following reports of a U.S. proposal to end the Russia-Ukraine war.The loonie was trading 0.5% lower at 1.4060 per U.S. dollar , after touching its weakest intraday level since November 7 at 1.4065. Immediate resistance can be seen at 14060(Daily high), an upside break can trigger rise towards 1.4120(23.6%fib).On the downside, immediate support is seen at 1.4025(SMA 20), a break below could take the pair towards 1.3977 (38.2%fib).
USD/JPY: The dollar hit ten-month high against the yen on Wednesday after Finance Minister Satsuki Katayama declared that Japan's new government was closely monitoring markets "with a high sense of urgency. Japanese government ministers including Katayama met Bank of Japan Governor Kazuo Ueda on Wednesday. The yen fell after Katayama's comments.The currency has been falling on market expectations that Prime Minister Sanae Takaichi's new administration will deliver a huge spending package backed by low interest rates. The inauguration last month of Takaichi, who is known as an advocate of expansionary fiscal and monetary policy, has complicated the BOJ's efforts to gradually push up still-low interest rates. Immediate resistance can be seen at 156.91(23.6%fib) an upside break can trigger rise towards 157.00 (Psychological level) .On the downside, immediate support is seen at 155.31 (38.2%fib) a break below could take the pair towards 154.22 (SMA 20)
Equities Recap
European shares ended Wednesday flat as investors awaited a crucial earnings report from chipmaker Nvidia, which could influence trading in AI-related stocks.
UK's benchmark FTSE 100 closed down by 0.47 percent, Germany's Dax ended down by 0.08 percent, France’s CAC finished the day down by 0.18 percent.
U.S. stocks rose on Wednesday, recovering part of the recent losses as investors positioned ahead of Nvidia’s highly anticipated earnings and key employment data delayed by the record-long U.S. government shutdown.
Dow Jones closed up by 0.10% percent, S&P 500 closed up by 0.38% percent, Nasdaq settled up by 0.59% percent.
Commodities Recap
Gold prices trimmed gains on Wednesday following the release of the Fed’s latest meeting minutes, as investors turned their attention to upcoming economic data for guidance on U.S. interest rates.
Spot gold was up 0.2% at $4,073.79 per ounce, at 2:25 p.m. ET (1925 GMT), after climbing over 1% earlier in the session. U.S. gold futures for December settled 0.4% higher at $4,082.80.
Crude prices fell Wednesday as reports emerged of a U.S. initiative to broker an end to the Russia-Ukraine conflict.
Brent crude futures fell $1.38, or 2.1%, to settle at $63.51 a barrel, while U.S. West Texas Intermediate crude futures closed down $1.30, or 2.1%, to $59.44.
