Market Roundup
• Australia MI Leading Index (MoM) (Sep) -0.0% forecast,-0.1% previous
• China (MoM) (Sep) 0.1%, 0.2% forecast,0.0% previous
• China CPI (YoY) (Sep) -0.3%,-0.2% forecast,-0.4% previous
• China PPI (YoY) (Sep) -2.3%, -2.3% forecast,-2.9% previous
• Japan Capacity Utilization (MoM) (Aug) -2.3% ,-1.1% previous
• Japan Industrial Production (MoM) (Aug) -1.5%, -1.2% forecast,-1.2% previous
Looking Ahead Economic Data(GMT)
• 09:00 EU Industrial Production (MoM) (Aug) -1.6% forecast, 0.3% previous
• 09:00 EU Industrial Production (YoY) (Aug) 1.8% previous
• 09:30 German 30-Year Bund Auction 3.250% previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro edged higher on Wednesday as dollar weakened after dovish comments from Federal Reserve Chair Jerome Powell. Powell left the door open to further rate cuts on Tuesday and said the end of the central bank's long-running effort to shrink the size of its holdings may be coming into view.His comments, viewed by some as dovish, reinforced expectations of more easing this year, with roughly 48 basis points worth of cuts priced in by December. Markets are currently priced for a quarter-point cut this month and another in December, followed by three more next year. The euro was last a touch higher at $1.1611, though it has largely been insulated from the ongoing political turmoil in France. Immediate resistance can be seen at 1.16630(Oct 13th high), an upside break can trigger rise towards 1.1696(38.2%fib).On the downside, immediate support is seen at 1.1525(50%fib), a break below could take the pair towards 1.1506(Lower BB)
GBP/USD: The pound strengthened on Wednesday as U.S. dollar weakened after comments from Federal Reserve Chair Jerome Powell bolstered wagers on an interest rate cut this month. Powell left the door open to cutting rates at the Fed's policy meeting on October 28-29 by saying the labor market remains mired in its low-hiring, low-firing doldrums, and that the absence of official economic data due to the government shutdown has not prevented policymakers from being able to assess the economic outlook, at least for now. On the global front, the U.S. and China escalated tensions on Tuesday with tit-for-tat fees on shipping firms that move everything from holiday toys to crude oil. Sterling gained 0.3% to $1.3355, bouncing back from declines on Tuesday .Immediate resistance can be seen at 1.3368(Oct 14th high), an upside break can trigger rise towards 1.3442(38.2%fib).On the downside, immediate support is seen at 1.3260(50%fib), a break below could take the pair towards 1.3226(Lower BB).
AUD/USD: The Australian dollar regained ground on Wednesday as the U.S. dollar came under pressure following remarks from Fed Chair Jerome Powell, which reinforced market expectations of a rate cut this month. Powell noted that the U.S. labor market remains subdued, though the economy “may be on a somewhat firmer trajectory than expected,” and said the Fed will make interest rate decisions on a “meeting-by-meeting” basis, balancing weak labor conditions against inflation staying above target. Meanwhile, RBA Assistant Governor Sarah Hunter said recent data has been slightly stronger than expected, but the central bank continues to guide policy with a one- to two-year horizon. Immediate resistance can be seen at 0.6539(38.2%fib), an upside break can trigger rise towards 0.6685(Higher BB).On the downside, immediate support is seen at 0.6471(50%fib), a break below could take the pair towards 0.64507(Lower BB).
USD/JPY: The U.S. dollar dipped on Wednesday after Federal Reserve Chair Jerome Powell’s dovish comments fueled speculation of further rate cuts. Powell indicated that additional reductions remain possible and suggested that the Fed’s long-running balance sheet reduction program may soon conclude.Meanwhile, U.S. Trade Representative Jamieson Greer said the timing of potential 100% tariffs on Chinese exports, set for November 1, depends on Beijing, though he acknowledged it may be difficult for China to find a resolution. Investor sentiment has also been affected by escalating U.S.-China tensions and political uncertainty in Japan, where LDP head Sanae Takaichi is arranging meetings with three major opposition parties to discuss the country’s next prime minister, according to the Jiji news agency. Immediate resistance can be seen at 153.42(23.6%fib) an upside break can trigger rise towards 154.00 (Psychological level) .On the downside, immediate support is seen at 150.96 (38.2%fib) a break below could take the pair towards 149.42 (SMA 20).
EquitiesRecap
Japan’s Nikkei index bounced back on Wednesday following its sharpest decline since April, with investors returning to tech stocks hit by China-U.S. trade worries.
Hang Seng was up 1.86% ,China’sA50 traded up 1.77% ,Japan’s Nikkei 225 was up 1.78 %
Commodities Recap
Gold surged past $4,200 per ounce for the first time on Wednesday, supported by growing expectations of additional U.S. rate cuts and renewed safe-haven demand amid U.S.-China trade concerns.
Spot gold was up 1.4% at $4,200.11 per ounce, as of 0659 GMT. U.S. gold futures for December delivery gained 1.3% to $4,218.0.
Oil extended its decline amid concerns over a 2026 supply glut highlighted by the International Energy Agency and ongoing U.S.-China trade frictions.
Brent crude futures LCOc1 fell 9 cents, or 0.14%, to $62.30 a barrel by 0640 GMT, while U.S. West Texas Intermediate futures eased 3 cents, or 0.05%, to $58.67 a barrel.
