Market Roundup
• US Continuing Jobless Claims 1,960K, 1,953K previous
• US Core Durable Goods Orders (MoM) (Sep) 0.6%, 0.5% previous
• US Durable Goods Orders (MoM) (Sep) 0.5%, 0.5% forecast, 3.0% previous
• US Durables Excluding Defense (MoM) (Sep) 0.1%, 1.9% forecast, 1.9% previous
• US Goods Orders Non Defense Ex Air (MoM) (Sep) 0.9%, 0.9% previous
• US Initial Jobless Claims 216K, 226K forecast, 222K previous
• US Jobless Claims 4-Week Avg. 223.75K, 224.75K previous
• US Chicago PMI (Nov) 36.3, 44.3 forecast, 43.8 previous
• US Crude Oil Inventories 2.774M, -1.300M forecast,-3.426M previous
• US 4-Week Bill Auction 3.905%, 3.890% previous
• US 8-Week Bill Auction 3.840%, 3.850% previous
• US 7-Year Note Auction 3.781%, 3.790% previous
• US Atlanta Fed GDPNow (Q4) 3.9%, 4.0% forecast, 4.0% previous
• U.S. Baker Hughes Oil Rig Count 407, 419 previous
• U.S. Baker Hughes Total Rig Count 544, 554 previous
Looking Ahead Economic Data (GMT)
• 00:30 New Zealand ANZ Business Confidence (Nov) 58.1 previous
• 00:30 New Zealand NBNZ Own Activity (Nov) 44.6% previous
• 00:30 Australia Building Capital Expenditure (MoM) (Q3) 0.2% previous
• 00:30 Australia Plant/Machinery Capital Expenditure (QoQ) (Q3) 0.3% previous
• 00:30 Australia Private New Capital Expenditure (QoQ) (Q3) 0.6% forecast, 0.2% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro edged higher against the dollar on Wednesday as euro drew support from upbeat investor sentiment globally as expectations for another U.S. Federal Reserve rate cut in December grew following soft economic data on Tuesday. Data on Tuesday showed U.S. retail sales in September rose less than expected, while producer prices were in line with estimates.U.S. consumer confidence also weakened in November as households grew more concerned about jobs and their financial outlook.The data releases followed a series of recent dovish comments from Fed policymakers.Traders now see an 83% chance of a Fed rate cut next month, compared to 30% a week ago, the CME FedWatch tool showed.Immediate resistance can be seen at 1.1600(Psychological level), an upside break can trigger rise towards 1.16818(Higher BB).On the downside, immediate support is seen at 1.1558(SMA20), a break below could take the pair towards 1.1524(50%fib).
GBP/USD: Sterling steadied against the dollar on Wednesday in volatile trade as Britain's finance minister Rachel Reeves delivered a highly-anticipated budget.British finance minister Rachel Reeves unveiled a tax-heavy budget on Wednesday to create more room to meet borrowing targets.The outcome was driven by over £26 billion in new tax hikes, coming just a year after Reeves imposed £40 billion in increases the largest since the 1990s despite earlier pledges they would be a one-off.The country's fiscal watchdog, the Office for Budget Responsibility, cut its forecasts for growth in the British economy over the coming years.. Immediate resistance can be seen at 1.3253(38.2%fib), an upside break can trigger rise towards 1.3273(SMA 20).On the downside, immediate support is seen at 1.3122(SMA 20), a break below could take the pair towards 1.3051(23.6%fib).
USD/CAD: The Canadian dollar strengthened to a near one-week high against its U.S. counterpart on Wednesday as increased bets on a Federal Reserve interest rate cut next month helped lift equity markets and weighed on the greenback. U.S. data on Tuesday showed retail sales grew less than expected in September, while producer prices matched forecasts. U.S. consumer confidence weakened in November as households grew more concerned about jobs and personal finances. All of that left traders adding to bets of a Fed cut next month, with markets now pricing in an 85% chance of a 25-basis-point move, according to the CME FedWatch tool.Friday’s release of Canadian GDP data may influence market expectations for additional interest rate cuts by the Bank of Canada, providing fresh insight into the country’s economic momentum.Immediate resistance can be seen at 1.4104(Daily high), an upside break can trigger rise towards 1.4148(23.6%fib).On the downside, immediate support is seen at 1.4031(38.2%fib), a break below could take the pair towards 1.3955(50%fib).
USD/JPY: The U.S. dollar edged higher on Wednesday as the Japanese yen weakened, following an initial boost from speculation about a potential Bank of Japan rate hike next month. The yen has remained under close market watch, with investors cautious about possible Japanese intervention to support the currency. Sources told Reuters that the BOJ is signaling a possible rate increase as soon as next month, reviving hawkish rhetoric amid fading political pressure to keep rates low. The yen initially strengthened on the rate-hike report but later reversed course against the dollar. It was last down 0.2% at 156.44 per dollar, having earlier hit an intraday high of 155.66. Immediate resistance can be seen at 157.66(23.6%fib) an upside break can trigger rise towards 158.00 (Psychological level) .On the downside, immediate support is seen at 156.85 (Daily low) a break below could take the pair towards 155.34 (38.2%fib)
Equities Recap
Europe’s major equity indexes closed higher on Wednesday, led by technology stocks, as rising expectations of a U.S. rate cut boosted global risk appetite. Financial stocks also gained support following the UK budget announcement.
UK's benchmark FTSE 100 closed up by 0.85 percent, Germany's Dax ended up by 1.11 percent, France’s CAC finished the day up by 0.82 percent.
Wall Street extended its rally on Wednesday, driven by renewed tech strength and rising expectations of a December Federal Reserve rate cut, putting investors in a buying mood ahead of the Thanksgiving holiday.
Dow Jones closed up by 0.67 percent, S&P 500 closed up by 0.69 percent, Nasdaq settled up by 0.82 % percent.
Commodities Recap
Oil prices rose on Wednesday, recovering from one-month lows hit in the previous session, as investors weighed potential oversupply and ongoing Russia-Ukraine peace talks ahead of the U.S. Thanksgiving holiday.
Brent crude futures settled 65 cents, or 1.04%, higher to $63.13 a barrel, while U.S. West Texas Intermediate crude futures gained 70 cents, or 1.21%, at $58.65.
Gold prices hovered near a more-than one-week high on Wednesday, as expectations of a U.S. Federal Reserve rate cut next month supported demand for the non-yielding metal.
Spot gold was up 0.8% at $4,162.99 per ounce at 01:55 p.m. ET (18:55 GMT), after hitting its highest since November 14 earlier in the session. U.S. gold futures for December delivery settled 0.6% higher at $4,165.20 per ounce.
