Market Roundup
• Japan Foreign Bonds Buying -669.7B , 601.3B previous
• Japan Foreign Investments in Japanese Stocks 752.6B, 1,886.6B previous
• Australia NAB Quarterly Business Confidence 2, 0 previous
Looking Ahead Economic Data(GMT)
• 08:00 Spanish Trade Balance (Aug) -4.01B previous
• 10:00 UK CBI Industrial Trends Orders (Oct) -28 forecast,-27 previous
Looking Ahead Events And Other Releases(GMT)
• 08:30 BoE MPC Member Dhingra Speaks
Currency Forecast
EUR/USD : The euro dipped against the dollar on Thursday as investors sought the greenback as a safe haven amid heightened geopolitical and trade uncertainties. U.S. President Donald Trump said on Wednesday that he expects to reach a trade agreement with Chinese President Xi Jinping and plans to raise concerns over China’s purchases of Russian oil during their meeting in South Korea next week. Meanwhile, the Trump administration is reportedly considering restrictions on a wide range of software-driven exports to China from laptops to jet engines in retaliation for Beijing’s latest rare earth export controls.On the data front, the U.S. Consumer Price Index (CPI) report is set for release on Friday and is expected to show core inflation holding steady at 3.1% for September. Immediate resistance can be seen at 1.1662(50%fib), an upside break can trigger rise towards 1.1728(Oct 17th high).On the downside, immediate support is seen at 1.1561(61.8%fib), a break below could take the pair towards 1.1523(Lower BB).
GBP/USD: The pound remained under pressure against dollar on Thursday after British data on Wednesday showed consumer inflation held steady last month, defying economists' estimates for it to accelerate. Annual consumer price inflation held steady at 3.8% for the third consecutive month, the highest among advanced economies. The BoE expects inflation to gradually ease, reaching its 2% target only in the April-June 2027 period. Traders rushed to price a 75% chance of the Bank of England cutting rates by its December meeting up sharply from a 46% probability before the data was published - although those odds had eased back to around 61% on Thursday. Immediate resistance can be seen at 1.3386(SMA 20), an upside break can trigger rise towards 1.3399(SMA 20).On the downside, immediate support is seen at 1.3294(23.6%fib), a break below could take the pair towards 1.3265(Lower BB).
AUD/USD: The Australian dollar edged higher as investors awaited the U.S. inflation report and the upcoming US-China trade talks. Market participants are closely monitoring the progress of discussions, with officials from both countries set to meet this week in Malaysia. President Trump said on Monday that he expects to reach a fair trade deal with Chinese President Xi Jinping during their scheduled meeting in South Korea next week.The Consumer Price Index (CPI) for September, due Friday, is the week’s key market event and could have significant implications for the Federal Reserve. The release will provide a rare glimpse of economic clarity amid a 21-day U.S. government shutdown that has disrupted official data reporting. Immediate resistance can be seen at 0.6524(Oct 22nd high), an upside break can trigger rise towards 0.6544(50%fib).On the downside, immediate support is seen at 0.6476(61.8%fib), a break below could take the pair towards 0.6442(Lower BB).
USD/JPY: The dollar strengthened against yen on Thursday as the market awaited details of a big stimulus package from new Prime Minister Sanae Takaichi. Japan's new Prime Minister Sanae Takaichi is preparing an economic stimulus package that is likely to exceed last year's $92 billion to help households tackle inflation, government sources familiar with the plan said on Wednesday.The package of more than 13.9 trillion yen ($92.19 billion) is Takaichi's first major economic initiative since the advocate of big fiscal spending took office on Tuesday, reflecting a commitment to what she calls "responsible proactive fiscal policy.Investors are closely watching Takaichi's spending plans as Japan is one of the world's most indebted economies. Immediate resistance can be seen at 153.27(23.6%fib) an upside break can trigger rise towards 154.00 (Psychological level) .On the downside, immediate support is seen at 151.58 (38.2%fib) a break below could take the pair towards 151.00 (Psychological level).
EquitiesRecap
Asian stocks declined for a second consecutive day on Thursday, as weak earnings from major tech companies fueled a Wall Street selloff, while U.S. sanctions on Russia and potential new export controls on China heightened geopolitical concerns.
Hang Seng was up 0.47% ,China’sA50 traded up 0.24% ,Japan’s Nikkei 225 was down 1.30%
Commodities Recap
Gold dipped on Thursday as investors awaited key U.S. inflation data later this week for guidance on the future path of interest rates.
Spot gold was down 0.01% at $4,096.75 per ounce, as of 07:57 GMT. U.S. gold futures for December delivery climbed 1.8% to $4,138.10 per ounce.
Oil prices surged over 3% on Thursday, building on gains from the previous session, as Indian buyers began reassessing their Russian oil purchases following U.S. sanctions on major suppliers Rosneft and Lukoil amid the Ukraine conflict.
Brent crude futures were up by $2.12, or 3.4%, at $64.71 per barrel by 0614 GMT, while U.S. West Texas Intermediate crude futures were up $2.09, or 3.6%, at $60.59.
