Market Roundup
• US Wholesale Trade Sales (MoM) (Aug) -0.1% ,1.1% previous
•US Crude Oil Inventories 5.810M,2.000M forecast, 3.889M previous
•US EIA Refinery Crude Runs (WoW) -0.101M,-0.662M previous
•US Crude Oil Imports -0.305M ,0.191M previous
•US Cushing Crude Oil Inventories 1.247M,0.840M previous
•US Distillate Fuel Production 0.194M,-0.104M previous
•US EIA Weekly Distillates Stocks -3.124M,-2.300M forecast ,-1.284M previous
•US Gasoline Inventories -6.304M,-1.500M forecast , 1.119M previous
Looking Ahead Economic Data(GMT)
•03:35 Japan 5-Year JGB Auction 0.521% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dipped against the dollar on Wednesday after minutes from the Federal Reserve's September meeting that showed a substantial majority of policymakers backed its outsized 50-basis point rate cut.Traders also digested comments from Fed officials and kept their powder dry for Thursday's release of September's consumer price index.Investors were confident that the central bank will not continue easing so aggressively, and minutes from the Federal Open Market Committee were out of date after last Friday's robust nonfarm payroll data caused markets to reprice near-term Fed rate cut expectations. The euro extended its sell-off to a two-month low against the greenback, and was last off 0.36% at $1.094. Immediate resistance can be seen at 1.1005(38.2%fib), an upside break can trigger rise towards 1.1053(50%fib).On the downside, immediate support is seen at 1.0924(23.6%fib), a break below could take the pair towards 1.0920 (Lower BB).
GBP/USD: The British pound fell to a one-month low versus the dollar on Wednesday after minutes from the Federal Reserve's September meeting indicated more rate cuts, while investors awaited inflation data for further clues on the central bank's interest rate path.Minutes from the meeting showed a substantial majority of U.S. Federal Reserve officials supported beginning an era of easier monetary policy with an outsized half-point rate cut, but there appeared even broader agreement that the initial move would not commit the Fed to any particular pace of rate reductions in the future. Sterling weakened 0.34% to $1.3059 .Immediate resistance can be seen at 1.3127(38.2%fib), an upside break can trigger rise towards 1.3188(50%fib).On the downside, immediate support is seen at 1.3046(23.6%fib), a break below could take the pair towards 1.3000(Psychological level).
USD/CAD: The Canadian dollar weakened to a near eight-week low against its U.S. counterpart on Wednesday as oil prices fell and after investors reduced their bets on the pace of expected interest rate cuts from the Federal Reserve. The price of oil, one of Canada's major exports, settled 0.5% lower at $73.24 a barrel on rising U.S. crude inventories, but the risk of supply disruptions curbed price declines.Investors were awaiting Canada's monthly employment report, due on Friday, which is expected to show the show the economy adding 27,000 jobs in September.The loonie was trading 0.6% lower at 1.37 to the U.S. dollar, or 72.99 U.S. cents, after touching its weakest level since Aug. 16 at 1.3710. It was the sixth straight day of declines for the currency, the longest daily losing streak since July. Immediate resistance can be seen at 1.3717 (38.2%fib), an upside break can trigger rise towards 1.3744 (Higher BB).On the downside, immediate support is seen at 1.3676(50%fib), a break below could take the pair towards 1.3646 (61.8%fib).
USD/JPY: The dollar held on to gains against the yen on Tuesday after minutes from the Fed's latest meeting showed that policymakers did not feel committed to continuing with unusually large half-percentage-point rate cuts. Dallas Fed Bank President Lorie Logan said she wants smaller reductions ahead, given the still real upside risks to inflation and "meaningful uncertainties" over the economic outlook.Markets now see a 76% likelihood of a 25-basis-point cut from the Fed next month, according to the CME FedWatch tool.Investors now await U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data due on Thursday and Friday, respectively, for further insights on interest rate outlook. The dollar strengthened 0.76% to 149.32 against the Japanese yen. Strong resistance can be seen at 149.67(23.6%fib), an upside break can trigger rise towards 150.28(Higher BB). On the downside, immediate support is seen at 147.81(38.2 %fib), a break below could take the pair towards 147.00(Psychological level).
Equities Recap
European stocks settled higher on Wednesday, bouncing from losses in the previous session as investors focussed on upcoming interest rate cuts and a key U.S. inflation report later this week.
UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended down by 0.05 percent, France’s CAC finished the day down by 0.40 percent.
Wall Street stocks advanced on Wednesday with the S&P 500 and the Dow scoring record closing highs after the release of Federal Reserve meeting minutes and ahead of September inflation data and the earnings season..
Dow Jones closed down by 1.03% percent, S&P 500 closed up by 0.72% percent, Nasdaq settled up by 0.60% percent.
Commodities Recap
Gold retreated for the sixth straight day on Wednesday on an advancing dollar and diminished expectations for a larger rate cut from the Federal Reserve in November.
Spot gold fell 0.5% to $2,607.93 per ounce by 02:39 p.m. ET (1839 GMT). U.S. gold futures for December delivery settled 0.4% lower at $2,626.
il prices fell on Wednesday after U.S. data showed rising crude inventories, but losses were limited by the risk of Iranian supply disruptions caused by the Middle East conflict and Hurricane Milton in the U.S.
Brent crude futures settled at $76.58 a barrel, falling 60 cents, or 0.8%. U.S. West Texas Intermediate (WTI) futures settled down 33 cents or 0.5%, at $73.24 a barrel.
