Market Roundup
•Canada Housing Starts (Sep) 223.8K, 235.0K forecast, 213.0K previous
•US Export Price Index (YoY) (Sep) -2.1% , -0.7% previous
•US Export Price Index (MoM) (Sep) -0.7% -0.4% forecast, -0.9% previous
•US Import Price Index (MoM) (Sep) -0.4% -0.3% forecast, -0.2% previous
•US Import Price Index (YoY) (Sep) -0.1%, -0.8% previous
•Canada Manufacturing Sales (MoM) (Aug) -1.3% -1.5% forecast, 1.4% previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Employment Change (Sep) - 25.2K forecast, 47.5K previous
•00:30 Australia Full Employment Change (Sep) -3.1K previous
•00:30 Australia NAB Quarterly Business Confidence -1 previous
•00:30 Australia Participation Rate (Sep) - 67.1% forecast, 67.1% previous
•00:30 Australia Reserve Assets Total (Sep) - 93.1B previous
•00:30 Australia Unemployment Rate (Sep) - 4.2% forecast, 4.2% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Wednesday as investors keenly awaited European Central meeting on Thursday. The European Central Bank meets on Thursday, and is expected to cut rates by 25 bps, with investors' focus on whether President Christine Lagarde will give any hints about policymakers longer term expectations, important for the euro's future path. The euro, the dollar index's biggest component, fell 0.4%to $1.0855 , after earlier sliding to $1.0853, its lowest since early August. Immediate resistance can be seen at 1.0895(Daily high), an upside break can trigger rise towards 1.0917(38.2%fib).On the downside, immediate support is seen at 1.0880(23.6%fib), a break below could take the pair towards 1.0863(July 16th low).
GBP/USD: The pound fell on Wednesday after softer-than-expected British inflation data offered scope for the Bank of England to cut rates more forcefully. British inflation fell to 1.7% year on year in September from 2.2% in August, the lowest level since April 2021 and lower than poll's forecast of 1.9%. Headline CPI remained steady month on month, although closely monitored services inflation fell to 4.9% year on year. Expectations that the BoE would cut rates more slowly than the Federal Reserve and the European Central Bank supported the pound earlier this year, though the gap has narrowed somewhat. Immediate resistance can be seen at 1.3054(38.2%fib), an upside break can trigger rise towards 1.3123(50%fib).On the downside, immediate support is seen at 1.2981(23.6%fib), a break below could take the pair towards 1.2928 (Lower BB).
USD/CAD: The Canadian dollar rose against its U.S. counterpart on Wednesday as investors judged that much of the Bank of Canada's potential policy easing has been priced into the market and assessed the likely economic impact of the upcoming U.S. election. Chances of an unusually large 50-basis-point interest rate cut from the BoC on Oct. 23 have climbed to roughly 80% from 50% before the release of cooler-than-expected domestic inflation data on Tuesday. Data showed factory sales falling 1.3% in August and housing starts increasing by less than expected in September . The Canadian dollar was trading 0.1% higher at 1.3765 per U.S. dollar , extending its recovery from a 10-week low of 1.3838 on Tuesday .Immediate resistance can be seen at 1.3793 (Daily high), an upside break can trigger rise towards 1.3818(23.6 %fib).On the downside, immediate support is seen at 1.3751(38.2 %fib), a break below could take the pair towards 1.3730 (Lower BB).
USD/JPY: The dollar strengthened against the yen on Wednesday as investors ruled out a hefty interest rate cut from the Federal Reserve at the next policy meeting. Recent data indicating a resilient economy coupled with slightly hotter-than-expected inflation in September have led market participants to trim bets for an aggressive U.S. rate reduction.Traders currently lay 92% odds for a 25-basis-point cut when the Fed next decides policy on Nov. 7, with an 8% probability of no change, according to CME Group's FedWatch Tool. A month ago, traders saw greater than 29% odds of a super-sized 50-basis-point reduction. Immediate resistance can be seen at 149.83(Oct 15th high), an upside break can trigger rise towards 150.00(Psychological level). On the downside, immediate support is seen at 148.70(38.2 %fib), a break below could take the pair towards 147.00(Psychological level).
Equities Recap
Europe's shares ended mixed on Wednesday as caution lingered ahead of the European Central Bank's policy announcement
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UK's benchmark FTSE 100 closed up by 0.97 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the day down by 0.40 percent.
The Dow Jones Industrial Average gained on Wednesday and closed at a record high, while Wall Street's two main benchmark indexes also ended higher, surviving drops in megacap tech shares owing to small-cap advances and banking equities boosted by solid results.
Dow Jones closed up by 0.79%percent, S&P 500 closed up by 0.47% percent, Nasdaq settled up by 0.28 % percent.
Commodities Recap
Gold surged to new highs on Wednesday as gains in non-yielding metal were backed by weakness in US bond rates and predicted rate cuts by major central banks, with extra safe-haven support coming from ongoing geopolitical crises.
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Spot gold rose 0.5% to $2,673.24 per ounce by 5:30 p.m. ET (2130 GMT), inching close to a record high of $2,685.42 it hit on Sept. 26. U.S. gold futures settled 0.5% higher at $2,691.3.
Oil prices hovered at a two-week low on Wednesday, after dropping roughly 7% over the previous three days on projections for weaker oil demand growth and diminished worries that Middle Eastern hostilities may disrupt supply.
Brent futures fell 3 cents to settle at $74.22 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 19 cents, or 0.3%, to settle at $70.39.
