Market Roundup
•UK NIESR Monthly GDP Tracker 1.0%,1.5% previous
•US 4-Week Bill Auction 0.050%,0.050% previous
•US 8-Week Bill Auction 0.060%, 0.055% previous
Looking Ahead Economic Data (GMT)
•03:30 New Zealand Oct Business NZ PMI 3.6%
•05:30 Australia MI Inflation Expectations previous
•07:30 Chinese Unemployment Rate 4.9% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Thursday as dollar rose after the strongest U.S. inflation reading in over three decades fuelled expectations of Fed interest rate hikes next year. U.S. consumer price data released on Wednesday showed the biggest gain in four months, lifting the annual increase to 6.2%, the strongest year-on-year rise since November 1990 and following a 5.4% leap in September. The dollar pushed the euro below $1.15, leaving the next major chart support level down at $1.12. Immediate resistance can be seen at 1.1522(38.2%fib), an upside break can trigger rise towards 1.1544(5DMA).On the downside, immediate support is seen at 1.1455 (23.6%fib), a break below could take the pair towards 1.1400(Psychological level).
GBP/USD: Sterling fell to its lowest level of 2021 against the dollar on Thursday as the British economy appeared to lose momentum and a surge in U.S. inflation boosted the greenback amid bets that the Federal Reserve would hike interest rates faster than expected. Data released by the Office for National Statistics showed Britain’s economy grew by 0.6% in September but estimates for previous months were revised lower, leaving the economy still smaller than it was in February 2020. At 18:14 GMT Sterling traded down 0.13% at $1.3385. Immediate resistance can be seen at 1.3540 (38.2%fib), an upside break can trigger rise towards 1.2678(23.6%fib).On the downside, immediate support is seen at 1.3360(38.2%fib), a break below could take the pair towards 1.3300(Psychological level).
USD/CAD: The loonie declined against its US counterpart on Thursday as accelerating U.S. inflation data added to pressure on the Federal Reserve to hike interest rates sooner than expected. The U.S. dollar jumped against a basket of major currencies after U.S. consumer prices surged to their highest rate since 1990. Investors worry that underestimating price increases could prove to be a costly policy mistake by the Fed. The loonie was trading 0.2% lower at 1.2582 to the greenback, after touching its weakest level since last Friday at 1.2127. Immediate resistance can be seen at 1.2600 (38.2%fib), an upside break can trigger rise towards 1.2675 (61.8%fib).On the downside, immediate support is seen at 1.2538 (50%fib), a break below could take the pair towards 1.2482 (23.6%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as after the hottest U.S. inflation reading in a generation encouraged bets on interest rate hikes.U.S. consumer prices grew last month at their fastest annual pace since 1990, data showed, and traders think the Federal Reserve could respond by lifting interest rates faster than in Europe or Japan. The yen extended a sharp reversal of recent gains to fall to 114.15 per dollar close to the Japanese currency's four-year low of 114.69 reached last month. Strong resistance can be seen at 114.16 (23.6%fib), an upside break can trigger rise towards 114.57(Higher BB).On the downside, immediate support is seen at 113.60(38.2% fib), a break below could take the pair towards 113.44(5DMA).
Equities Recap
European stocks were little changed on Thursday after concerns about U.S. inflation spike offset some relief around property developer China Evergrande and a slew of corporate earnings.
UK's benchmark FTSE 100 closed up by 0.77 percent, Germany's Dax ended down by 0.10percent, France’s CAC finished the day down by 0.20percent.
The S&P 500 and Nasdaq rebounded from two days of declines on Thursday as beaten-down chipmakers led gains, but losses in Walt Disney due to slowing subscriber growth in its streaming video service weighed on the Dow.
(At GMT 19:58 )Dow Jones was down by 0.35% percent, S&P 500 was up by 0.15% percent, Nasdaq settled up by 0.66% percent.
Commodities Recap
Gold prices neared a five-month high touched in the previous session, after strong U.S. consumer price data prompted a rush into the precious metal seen as a hedge against inflation.
Spot gold was up 0.6% at $1,861.39 per ounce by 01:48 p.m. ET (1848 GMT). U.S. gold futures for December delivery settled 0.8% higher at $1,863.90 per ounce.
Oil prices were steady to a few cents lower on Thursday, as the market grappled with a stronger U.S. dollar along with concern over increasing U.S. inflation, and after OPEC cut its 2021 oil demand forecast due to high prices.
Brent crude futures were down 8 cents to $82.56 a barrel by 1:42 p.m. EDT (1842 GMT) after falling earlier to $81.66. U.S. West Texas Intermediate (WTI) futures were down 2 cents to $81.32 after hitting a session low of $80.20.
