Market Roundup
•Japan Exports (YoY) (Oct) 3.1%, 2.2% forecast, -1.7% previous
•Japan Imports (YoY) (Oct) 0.4%, -0.3% forecast, 1.8% previous
•Japan Trade Balance (Oct) -461.2B, -360.4B forecast, -294.1B previous
•Australia MI Leading Index (MoM) (Oct) 0.2%, 0.0% previous
•China PBoC Loan Prime Rate (Nov) 3.60%, 3.60% previous
•China PBoC Loan Prime Rate 3.10%, 3.10% previous
Looking Ahead Economic Data(GMT)
•07:00 UK Core CPI (YoY) (Oct) 3.1% forecast, 3.2% previous
•07:00 UK Core CPI (MoM) (Oct) 0.1% previous
•07:00 UK Core PPI Output (MoM) (Oct) 0.0% previous
•07:00 UK Core PPI Output (YoY) (Oct) 1.4% previous
•07:00 UK Core RPI (YoY) (Oct) 2.0% previous
•07:00 UK Core RPI (MoM) (Oct) -0.4% previous
•07:00 UK CPI (YoY) (Oct) 2.2%, 1.7% previous
•07:00 UK CPI (MoM) (Oct) 0.0% previous
•07:00 UK CPI, n.s.a (Oct) 134.20 previous
•07:00 UK PPI Input (YoY) (Oct) -2.3% previous
•07:00 UK PPI Input (MoM) (Oct) 0.5% forecast, -1.0% previous
•07:00 UK PPI Output (YoY) (Oct) -0.7% previous
•07:00 UK PPI Output (MoM) (Oct) -0.1% forecast, -0.5% previous
•07:00 UK RPI (YoY) (Oct) 3.3% forecast, 2.7% previous
•07:00 UK RPI (MoM) (Oct) -0.3% previous
•07:00 German PPI (MoM) (Oct) -0.1% forecast, -0.5% previous
Looking Ahead Events And Other Releases(GMT)
•09:00 ECB Financial Stability Review
Currency Forecast
EUR/USD: The euro was little changed on Wednesday as the market catches its breath following the frantic rally in the wake of Donald Trump's election.A boost to the dollar and other traditional safe-haven currencies like the yen overnight proved short-lived, after Russia's foreign minister said the country will "do everything possible" to avoid the onset of nuclear war, hours after Moscow announced it would lower its threshold for a nuclear strike. Traders continue to pare back expectations for an interest-rate cut at the Fed's next meeting in December. Odds now stand at 57.3%, down from 58.7% a day earlier, according to CME's FedWatch Tool. A month ago, wagers were at 76.8% . 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 edged higher on Wednesday as markets awaited inflation data which could provide clues about the Bank of England's monetary path. Economists expect core CPI in Britain to rise 0.3% on a monthly basis, which would push up the annual rate to 3.1% from 2.9% in the prior month. Headline inflation is likely to have rebounded to 2.2% from 1.9% before. Markets are already pricing in a gradual approach to future rate cuts by the Bank of England, with expectations of about one cut per quarter following Chancellor Rachel Reeves' substantial spending budget. Sterling steadied at $1.2688. 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)
AUD/USD: The Australian held steady on Wednesday as Australian dollar garnered some support from a steady interest rate outlook from RBA. Minutes from the RBA's November policy meeting suggested that the central bank plans to maintain a tight monetary policy until it is sure that inflation is consistently heading toward its objective. The upcoming important economic data is the consumer price index for October, scheduled for release on Nov. 27, with predictions of another low reading following a significant decrease to an annual 2.1% in September. At GMT 05:55, The Aussie was trading at 0.6522 further away from the recent three-month low of $0.6443. Immediate resistance can be seen at 0.6555(38.2%fib), an upside break can trigger rise towards 0.6564(SMA 21).On the downside, immediate support is seen at 0.6481(Nov 19th low), a break below could take the pair towards 0.6389(April 16th low).
USD/JPY: The dollar strengthened against the yen on Tuesday as verbal interventions from Japanese authorities failed to support Japanese yen. Bank of Japan Governor Kazuo Ueda hinted that any upcoming interest rate increases would happen slowly, based on economic circumstances, with no exact schedule mentioned. The 160 level is being closely watched by markets as a possible catalyst for additional government intervention, mirroring the actions taken back in July. Regarding the economy, Japanese exports increased by 3.1% in October, rebounding from a 1.7% drop in September and surpassing the expected 2.2% rise. 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
Asian shares were trading cautiously on Wednesday as investors looked ahead to earnings results from artificial intelligence darling Nvidia where the risk of disappointment is high
At GMT 05:50 ,China A50 was up by 0.07%, South Korean KOSPI was up by 0.44%, while Hang Seng was up 0.10%
Commodities Recap
Gold prices rose to a one-week high on Wednesday, marking a third consecutive session of gains, driven by a softer dollar and escalating Russia-Ukraine tensions that raised the demand for safe-haven assets.
Spot gold added 0.2% to $2,636.59 per ounce by 0538 GMT, its highest since Nov. 11.U.S. gold futures climbed 0.3% to $2,639.80.
Oil prices held steady for a second day on Wednesday as concerns about escalating hostilities in the Ukraine war potentially disrupting oil supply from Russia and signs of growing Chinese crude imports offset data showing U.S. crude stocks rising.
Brent crude futures dipped 5 cents to $73.26 a barrel by 0541 GMT. U.S. West Texas Intermediate crude futures was flat at $69.39 per barrel.
