Market Roundup
• EIA Refinery Crude Runs -0.281M, 0.175M previous
•Crude Oil Imports 0.237M, -0.321M previous
•Cushing Crude Oil Inventories -0.140M, -0.688M previous
•Distillate Fuel Production -0.132M, -0.127M previous
•EIA Weekly Distillates Stocks -0.114M, -0.200M forecast, -1.394M previous
•Gasoline Inventories 2.054M, 1.620M forecast, -4.407M previous
Looking Ahead Economic Data(GMT)
•02:00 New Zealand Credit Card Spending (YoY) -3.2% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Wednesday as euro was hurt by stronger dolllar as well as concerns over slow growth in the euro zone after Ford announced it would cut around 14% of its European workforce. European Central Bank Vice-President Luis de Guindos said the central bank is "not almighty" in reviving the euro zone's weak growth, which is mostly due to structural issues. Separately, the ECB warned about a bubble in stocks related to artificial intelligence. The dollar index approached its year-to-date high amid haven-related greenback buying and firmer Treasury yields following a 20-year auction. Immediate resistance can be seen at 1.0611(38.2%fib), an upside break can trigger rise towards 1.0671(50%fib).On the downside, immediate support is seen at 1.0538`(23.6%fib), a break below could take the pair towards 1.0521(Lower BB)
GBP/USD: Sterling declined on Wednesday U.S. dollar rose renewing its post-election rally as investors looked for more insight on the Federal Reserve's interest rate plans and U.S. President-elect Donald Trump's proposed policies.Sterling weakened 0.27% to $1.248. The pound had initially moved higher as data showed British inflation jumped more than expected last month to rise back above the Bank of England's 2% target, and underlying price growth also gathered speed. The rise in inflation has supported cautiousness by the BoE on interest-rate cuts. Traders see an 82.8%chance the central bank will hold rates steady at its policy meeting next month. Immediate resistance can be seen at 1.2696(SMA 5), an upside break can trigger rise towards 1.2723(38.2%fib).On the downside, immediate support is seen at 1.2592 (23.6%fib), a break below could take the pair towards 1.2515(My 14th low)
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday, pulling back from an earlier one-week high, as the greenback notched broad-based gains and escalating Russia-Ukraine tensions led to investors turning more risk averse. The price of oil , one of Canada's major exports, gave back its earlier gains to trade 0.5% lower at $69.06 a barrel. Investors have reduced bets on another outsized interest rate cut by the Bank of Canada after domestic data on Tuesday showed inflation climbing more than expected to 2%.Canadian retail sales data for September, due on Friday, could offer additional clues on the BoC policy outlook. Economists expect an increase of 0.4% from August. Immediate resistance can be seen at 1.4000(Psychological level), an upside break can trigger rise towards 1.4092 (23.6%fib).On the downside, immediate support is seen at 1.3959(38.2%fib), a break below could take the pair towards 1.3850(50%fib).
USD/JPY: The dollar strengthened against the yen on Tuesday as verbal interventions from Japanese authorities failed to stabilize the yen, while the dollar rebounded sharply. The dollar had strengthened as much as 9% against the yen since the beginning of October to as much as 156.74, rising above the 156 mark last week for the first time since July and sparking the possibility Japanese authorities may again take steps to shoreup the currency.Investors are waiting for Trump to name a Treasury secretary, one of the highest-profile cabinet posts overseeing the country's financial and economic policy. Some of Trump's other picks have generated questions about their qualifications and experience.. Immediate resistance can be seen at 155.56(Daily high) an upside break can trigger rise towards 156.96(23.6%fib). On the downside, immediate support is seen at 154.22(38.2%fib) a break below could take the pair towards 153.50(21SMA).
Equities Recap
Europe's main stock index closed flat after a volatile session on Wednesday as investors remained on edge over geopolitical tensions between Ukraine and Russia which continued to cast a shadow over the markets.
UK's benchmark FTSE 100 closed down by 0.17 percent, Germany's Dax closed down by 0.29 percent, France’s CAC closed down by 0.43 percent.
The tech-heavy Nasdaq closed lower on Wednesday, taking a break from the prior session's rally as investors worried about escalating Russia-Ukraine tensions and weak results from Target.
Dow Jones closed up by 0.32% percent, S&P 500 closed at 0.00% percent, Nasdaq closed down by 0.11% percent.
Commodities Recap
Gold prices climbed for a third consecutive session to mark a one-week high on Wednesday, as investors sought refuge in the safe-haven metal amid mounting geopolitical unease fuelled by escalating Russia-Ukraine tensions.
Spot gold was up 0.6% at $2,647.43 per ounce as of 01:42 p.m. EST (1842 GMT), after hitting its highest level since Nov. 11 earlier in the session. U.S. gold futures settled 0.8% higher at $2,651.70.
Oil prices settled lower on Wednesday after U.S. crude and gasoline stocks rose by more than expected last week, but losses were capped by worries about the intensifying war between major oil producer Russia and Ukraine.
Brent crude futures for January settled down 50 cents, or 0.68%, at $72.81. U.S. West Texas Intermediate crude futures for December expired on Wednesday, and settled down 52 cents, or 0.75%, at $68.87
