Market Roundup
• US Crude Oil Inventories 3.715M, 2.250Mforecast,1.792M previous
• US EIA Refinery Crude Runs (WoW) 0.129M ,-0.308M previous
• US Crude Oil Imports 0.731M, 0.071M previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Foreign Bonds Buying -162.0B previous
• 23:50 Japan Foreign Investments in Japanese Stocks -963.3B previous
•00:00 Australai MI Inflation Expectations (Oct) 4.7% previous
•00:00 Japan Reuters Tankan Index (Oct) 13 previous
Looking Ahead Events and Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro fell against the U.S. dollar for a third consecutive day on Wednesday, pressured by ongoing political instability in France. President Emmanuel Macron faces growing calls to resign or call a snap parliamentary election after five prime ministers have resigned in less than two years. On Tuesday, outgoing Prime Minister Sebastien Lecornu held last-ditch talks to form a new government; he was the first premier Macron appointed in 2017. Investors remain cautious, closely watching France’s ability to reduce its substantial budget deficit.Adding to the euro’s pressure, German industrial output plunged sharply in August, with industrial production falling 4.3% month-on-month the largest decline since March 2022, according to the Federal Statistics Office. Immediate resistance can be seen at 1.16662(Daily high), an upside break can trigger rise towards 1.1733(38.2%fib).On the downside, immediate support is seen at 1.1599(50%fib), a break below could take the pair towards 1.1565(Lower BB)
GBP/USD: The pound slipped on Wednesday as the U.S. dollar benefited from a lack of government economic data as the federal government remains shut. The shutdown, now in its eighth day, has delayed key economic data, leaving markets reliant on private-sector indicators to gauge the timing and extent of potential Fed rate cuts. Minutes released Wednesday from the last Federal Reserve meeting showed a divided committee, in which policymakers were concerned about rising labor market risks but remained wary of inflation. The central bank is widely expected to cut rates by 25 basis points at its October 28-29 meeting, according to the CME Group’s FedWatch Tool. Immediate resistance can be seen at 1.3500(SMA 20), an upside break can trigger rise towards 1.3530(38.2%fib).On the downside, immediate support is seen at 1.3344(50%fib), a break below could take the pair towards 1.3309(Lower BB).
USD/CAD: The Canadian dollar traded in tight range against its U.S. counterpart on Wednesday as investors awaited domestic jobs data at the end of the week. Canada's employment report for September, due on Friday, is expected to show the economy adding 5,000 jobs and the unemployment rate edging up to 7.2% from 7.1% in August.The Canadian central bank cut interest rates last month for the first time since March, lowering the benchmark rate to 2.50%.Canada's trade deficit widened in August to its second-highest level on record as exports declined in the face of U.S. tariffs on Canadian goods, data on Tuesday showed. The loonie was trading 0.1% lower at 1.3958 per U.S. dollar, after moving in a range of 1.3932 to 1.3971. The currency has been in a holding pattern since last Thursday when it hit a 4-1/2-month low at 1.3986. Immediate resistance can be seen at 1.3972(Daily high), an upside break can trigger rise towards 1.4000(Psychological level).On the downside, immediate support is seen at 1.3911(38.2 %fib), a break below could take the pair towards 1.3881(SMA 20).
USD/JPY: The U.S. dollar rose on Wednesday as on yen continued to weakened on rising concerns about an increase in fiscal spending in Japan.The surprise election of Sanae Takaichi to Japan’s ruling Liberal Democratic Party on Saturday has dented the yen on expectations of greater government stimulus.Former Japanese Prime Minister Shinzo Abe adopted expansive policies to combat Japan's long-term deflation and stimulate economic growth after 2012.Former Bank of Japan executive Kazuo Momma noted on Wednesday that the yen’s recent sharp declines could prompt the central bank to raise interest rates as soon as this month.The dollar was last up 0.53% at 152.60. It earlier reached 152.99, the highest since February 14, and has risen from 147.44 on Friday. Immediate resistance can be seen at 153.00 (Psychological level) an upside break can trigger rise towards 153.79 (Higher BB) .On the downside, immediate support is seen at 151.80 (Daily low) a break below could take the pair towards 150.75 (50%fib).
Equities Recap
European shares hit record highs on Wednesday, led by gains in French and Spanish stocks, while steelmakers surged after the EU announced plans to cut steel import quotas.
UK's benchmark FTSE 100 closed up by 0.69 percent, Germany's Dax ended up by 0.87 percent, France’s CAC finished the day up by 1.07 percent.
Technology stocks lifted U.S. equities to a higher close on Wednesday, as investors, with limited economic data due to the government shutdown, turned to the Federal Reserve’s latest meeting minutes for guidance on future interest rates.
Dow Jones closed flat by 0.00% percent, S&P 500 closed up by 0.58% percent, Nasdaq settled up by 1.12% percent.
Commodities Recap
Gold surged past $4,000 an ounce for the first time on Wednesday, extending its record-breaking rally as investors sought the safe-haven amid geopolitical and economic uncertainty and expectations of U.S. interest rate cuts.
Spot gold was up 1.7% at $4,050.24 per ounce by 1345 PM ET (1745 GMT). U.S. gold futures for December delivery also settled 1.7% higher at $4,070.5.
Oil prices rose about 1% to a one-week high on Wednesday, supported by expectations that stalled progress on a Ukraine peace deal would maintain sanctions on Moscow, alongside a weekly report showing rising U.S. oil consumption.
Brent crude futures rose 80 cents, or 1.2%, to settle at $66.25 a barrel. U.S. West Texas Intermediate (WTI) crude rose 82 cents, or 1.3%, to settle at $62.55.
