Market Roundup
• Swiss CPI (MoM) (Nov) -0.2%, -0.1% forecast,-0.3% previous
• Swiss CPI (YoY) (Nov) 0.0%, 0.1% forecast,0.1% previous
•HCOB Spain Services PMI (Nov) 55.6, 56.3 forecast,56.6 previous
•HCOB Italy Composite PMI (Nov) 53.8, 53.2 forecast,53.1 previous
•HCOB Italy Services PMI (Nov) 55.0, 53.9 forecast,54.0 previous
•HCOB France Composite PMI (Nov) 50.4,49.9 forecast,47.7 previous
•HCOB France Services PMI (Nov) 51.4,50.8 forecast,48.0 previous
•HCOB Germany Composite PMI (Nov) 52.4,52.1 forecast,53.9 previous
•HCOB Germany Services PMI (Nov) 53.1,52.7 forecast,54.6 previous
•HCOB Eurozone Composite PMI (Nov) 52.8,52.4 forecast,52.5 previous
•HCOB Eurozone Services PMI (Nov) 53.6,53.1 forecast,53.0 previous
•UK S&P Global Composite PMI (Nov) 51.2, 50.5 forecast,,52.2 previous
•UK S&P Global Services PMI (Nov) 51.3 , 50.5 forecast,52.3 previous
Looking Ahead Economic Data (GMT)
•13:30 US Export Price Index (MoM) (Sep) 0.1% forecast, 0.3% previous
•13:30 US Export Price Index (YoY) (Sep) 3.4% previous
•13:30 US Import Price Index (YoY) (Sep) 0.0% previous
•13:30 US Import Price Index (MoM) (Sep) 0.1% forecast, 0.3% previous
•13:30 Canada Labor Productivity (QoQ) (Q3) 0.4% forecast, -1.0% previous
•14:15 US Capacity Utilization Rate (Sep) 76.9% forecast,77.4% previous
•14:15 US Industrial Production (MoM) (Sep) 0.1% forecast,0.1% previous
•14:15 US Industrial Production (YoY) (Sep) 0.84% previous
•14:15 US Manufacturing Production (MoM) (Sep) 0.1% forecast,0.2% previous
•14:30 Canada Services PMI (Nov) 50.50 previous
•14:45 US S&P Global Composite PMI (Nov) 54.8 forecast,54.6 previous
•14:45 US S&P Global Services PMI (Nov) 55.0 forecast,54.8 previous
•15:00 US Construction Spending (MoM) (Sep) 0.2% previous
•15:00 USISM Non-Manufacturing Business Activity (Nov) 54.3 previous
•15:00 US ISM Non-Manufacturing Employment (Nov) 48.2 previous
•15:00 US ISM Non-Manufacturing New Orders (Nov) 56.2 previous
•15:00 US ISM Non-Manufacturing PMI (Nov) 52.0 forecast,52.4 previous
•15:00 US ISM Non-Manufacturing Prices (Nov) 70.0 previous
•15:00 US Total Vehicle Sales (Nov) 15.40M forecast,15.30M previous
Looking Ahead Events And Other Releases (GMT)
•No events Ahead
Currency Forecast
EUR/USD : The euro advanced on Wednesday as traders ramped up bets on Federal Reserve rate cuts following U.S. economic data and growing expectations for a more dovish central bank.Fed Governor Christopher Waller said last week the labour market is weak enough to justify another quarter-point rate cut in December, while White House economic adviser Kevin Hassett emerged as the frontrunner to become the next Fed chair. Business activity in the euro zone expanded at its fastest pace in two-and-a-half years in November as a robust service sector more than offset manufacturing weakness, a survey showed on Wednesday.HCOB's Eurozone Composite Purchasing Managers' Index (PMI), compiled by S&P Global and seen as a good gauge of overall economic health, rose to 52.8 in November from 52.5 in October, marking its sixth consecutive monthly increase. Immediate resistance can be seen at 1.1672(Higher BB), an upside break can trigger rise towards 1.1700(Psychological level).On the downside, immediate support is seen at 1.1572(SMA20), a break below could take the pair towards 1.1524(50%fib).
GBP/USD: Sterling hit a 5-week high against the dollar on Wednesday as the greenbacksoftened, with markets continuing to price in a possible Federal Reserve rate cut. The greenback came under added pressure after Donald Trump hinted at a new Fed chair while introducing economic adviser Kevin Hassett, who is seen as a dovish alternative to Jerome Powell. Data earlier this week strengthened bets on a December cut, with manufacturing contracting for a ninth straight month. Markets now see an 87.2% chance of a 25-basis-point cut next week . Sterling hit a 5-week high against the dollar at $1.3289, and was last up 0.54% at $1.3286. Immediate resistance can be seen at 1.3314(38.2%fib), an upside break can trigger rise towards 1.3356(38.2%fib).On the downside, immediate support is seen at 1.3233(23.6%fib), a break below could take the pair towards 1.3167(SMA20).
AUD/USD: The Australian dollar climbed to a one-month high on Wednesday after domestic data signalled solid economic growth in the third quarter. Government spending surged, alongside a long-awaited rebound in business investment, laying the groundwork for stronger growth. Data from the Australian Bureau of Statistics showed government spending added 0.4 percentage points to GDP in the September quarter after barely contributing previously. The policy board of the Reserve Bank of Australia meets next week and is widely expected to hold rates at 3.60%, while potentially adopting a more hawkish tone. Governor Michele Bullock is due to appear before lawmakers on Wednesday, where inflation is set to dominate questioning. Immediate resistance can be seen at 0.6607(38.2%fib), an upside break can trigger rise towards 0.6611 (Higher BB).On the downside, immediate support is seen at 0.6535(50%fib), a break below could take the pair towards 0.6511(SMA 20)
USD/JPY: The U.S. dollar slipped lower on Wednesday as the yen strengthened on rising expectations of a Bank of Japan rate hike later this month. Markets were caught off guard after Governor Kazuo Ueda said the central bank was weighing the “pros and cons” of a December move. Japan’s finance minister said there was no policy disconnect between the government and the BOJ, while traders increased bets on tightening after last month’s yen slide to a 10-month low. The dollar index , which measures the U.S. currency against six other units, was 0.37% lower at 98.954, the lowest since October 29.The dollar dropped 0.32% to 155.39 against the Japanese yen on Wednesday after rising 0.25% to 155.89 the day before. Immediate resistance can be seen at 156.17(Dec 1st high) an upside break can trigger rise towards 157.40 (23.6%fib) .On the downside, immediate support is seen at 155.14 (38.2%fib) a break below could take the pair towards 154.71 (Dec 1st low)
Equities Recap
European stocks inched up on Wednesday, with gains in tech and industrials outweighing weakness in heavyweight financial shares, supported by improving global sentiment and positive corporate news.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading down at 0.15 percent, Germany's Dax was up by 0.17 percent, France’s CAC was last up by 0.02 percent.
Commodities Recap
Gold prices held steady on Wednesday as investors awaited key U.S. economic data to assess the Federal Reserve’s policy outlook, while silver eased from record highs.
Spot gold fell 0.1% to $4,203.58 an ounce by 1128 GMT after losing more than 1% in the previous session. U.S. gold futures for February delivery were up 0.3% at $4,234.60.
Oil prices jumped more than 1% on Wednesday after Russia said talks with U.S. officials in Moscow failed to produce a compromise on a possible Ukraine peace deal that could have eased oil sanctions.
Brent crude gained 78 cents, or 1.3%, to $63.23 at 1010 GMT, while U.S. West Texas Intermediate rose 85 cents, or 1.5%, to $59.49. Both contracts fell more than 1% in the previous session.
