Market Roundup
- Canada job vacancies rise in Q2, best opportunities in resource rich west.
- BoE’s Carney says continues to see strong UK domestic demand.
- Chile central bank considered both hold and hike in Nov – minutes.
- Dollar hits 8-month high as easing fears hammer euro, SNB EURCHF intervention tipped pre-ECB.
- US. bond prices rise as world stock markets drop, US yields fall with German yields on ECB stimulus bets.
- Black Friday for China stocks but metals not so heavy, industrial metals see 1st weekly rise since Oct.
- Gold slips to near 6-year low, set for 6th straight weekly drop, despite ample Chinese demand.
Looking Ahead – Economic Data (GMT)
- 21:45 New Zealand Building Consents* Oct -5.7%-previous
- 23:30 Australia TD-MI Inflation Gauge*Nov 0%-previous
- 23:50 Japan Industrial output prelim mm *Oct forecast 1.9%, 1.1%-previous
- 23:50 Japan IP Forecast 1 month Ahead*Oct 4.1%-previous
- 23:50 Japan IP Forecast 2 month Ahead*Oct -0.3%-previous
- 23:50 Japan Retail Sales YY*Oct forecast 0.8%, -0.2%-previous
- 05:00 Japan Construction Orders YY*Oct 6.7%-previous
- 05:00 Japan Housing Starts YY* Oct forecast 2.9%, 2.6%-previous
Looking Ahead – Events, Other Releases (GMT)
- 01:00 Japan- Bank of Japan Governor Haruhiko Kuroda speaks to business leaders in Nagoya
Currency SummariesEUR/USD is likely to find support at 1.0560 levels and currently trading at 1.0594 levels. The pair has made session high at 1.0603 and hit lows at 1.0567 levels. The dollar rose against euro on Friday, hitting an eight-month high against euro as speculation the Swiss National Bank would follow the European Central Bank in cutting deposit rates put bearish pressure euro. Expectations of growing interest rate differentials between the dollar and major European currencies have pushed the dollar up against most of the major currency pair. Most analysts anticipate the Federal Reserve will raise U.S. interest rates next month, strengthening the dollar, while the ECB and SNB are expected to announce further easing. The euro rebounded in afternoon U.S. trading to move back above $1.06 after falling near seven-month lows in overnight trading. It was last down 0.1 percent against the dollar to $1. single currency is down 3.7 percent versus the dollar so far this month as markets anticipate the ECB announcing a loosening of monetary policy at its Dec. 3 meeting. To the upside, immediate resistance can be seen at 1.0637. To the downside, immediate support level is located at 1.0577 levels.GBP/USD is supported in the range of 1.5026 and currently trading at 1.5039 levels. It reached session high at 1.5071 and hit low at 1.5029 levels. Sterling slipped to a three-week low against the dollar on Friday after data showed the British economy slowed in the third quarter, bolstering market expectations that the Bank of England will not raise interest rates any time soon. Despite better growth proposition from the Office for Budget Responsibility this week that accompanied the finance minister’s spending review, Friday’s numbers showed the UK economy grew just 0.5 percent from July to September, slowing from 0.7 percent the previous quarter. Sterling fell half a percent on the day to $1.5032 after the data, its lowest in three weeks and just five ticks away from a seven-month low of $1.5027 reached earlier in the month. It recovered some losses later on Friday but still traded down 0.3 percent at $1.5049. To the upside, immediate resistance can be seen at 1.5090. To the downside, immediate support level is located at 1.5027levels.AUD/USD is supported around 0.7153 levels and currently trading at 0.7191 levels. It hit session high at 0.7248 and made session lows at 0.7180 levels. The Australian dollar edged lower against US dollar on Friday, after investors remained cautious after Chinese stocks posted their biggest intraday loss since August, hurting commodity prices. Dollar broadly remained stronger on the day as traders remained optimistic about U.S. interest rate increase in December. Against the U.S. dollar, the Aussie slipped at $0.7190, having touched a one-month peak of $0.7283 on Wednesday. The central bank’s next policy meeting is on Dec. 1 and economists expect the RBA to keep interest rates at a record low of 2.0 percent. To the upside, immediate resistance can be seen at 0.7348. To the downside, immediate support level is located at 0.7180 levels. USD/CAD is supported at 1.3315 levels and is trading at 1.3367 levels. It has made session high at 1.3375 and lows at 1.3346 levels. The Canadian dollar weakened against U.S. dollar on Friday, as the crude oil prices dragged down by falling oil prices amid fresh volatility in Chinese stocks, while Canadian producer prices fell more than expected. Crude oil prices fell as disappointing Chinese data and concern over a global energy supply glut overshadowed geopolitical concerns. Chinese declined sharply more than 5 percent after the stock regulator had initiated a probe on brokerages to include the country’s fourth-biggest securities firm. The currency’s strongest level of the session was C$1.3292, while its weakest was C$1.3374, a three-day low. To the upside, immediate resistance can be seen at 1.3338. To the downside, immediate support level is located at 1.3315 levels.Equities RecapEuropean shares retreated from a three-month high on Friday, hit by a drop in shares of mining companies after a slump in Chinese equities. Anticipation of further stimulus by the European Central Bank next week helped to cushion the fall.UK’s benchmark FTSE 100 closed down by 0.27 percent, the pan-European FTSEurofirst 300 ended the day down by 0.27 percent, Germany’s Dax ended down by 0.27 percent, France’s CAC finished the day down by 0.36 percent.U.S. stock ended little changed in light trading on Friday, with consumer stocks falling as investors fretted over early reports on the U.S. holiday shopping season and Disney’s subscriber losses weighed on the market.Dow Jones closed down by 0.08 percent, S&P 500 ended up by 0.07 percent, Nasdaq finished the day up by 0.02 percent.Treasuries RecapU.S. Treasuries prices edged up on Friday and benchmark yields hovered at their lowest levels in over three weeks as global stock market losses stoked demand for lower-risk government debt.Benchmark 10-year Treasuries notes were up 3/32 in price for a yield of 2.222 percent, down 1 basis point from late on Wednesday. Earlier, the 10-year yield touched 2.204 percent, the lowest level in more than three weeks.Commodities RecapGold dropped almost two percent to a near six-year low on Friday, set for a sixth straight weekly decline under pressure from a firm U.S. dollar and prospects of a U.S. interest rate rise next month.Spot gold hit $1,052.46 an ounce, its lowest since February 2010, and was down 1.3 percent at $1,057.50 by 12:59 p.m. EST (1759 GMT).Spot prices were down about 2 percent for the week. U.S. gold futures hit a six-year low of $1,051.10 an ounce before closing down 1.3 percent at $1,056.20 and skidding to a sixth straight weekly decline.Oil settled lower in light post-holiday volume in New York on Friday as the dollar’s rally to an eight-month high and a tumble in Chinese equities added pressure to oversupplied crude futures.WTI settled down $1.33 at $41.71 a barrel, trading just over 280,000 lots, data showed. Activity in WTI has dwindled since Monday’s volume above 500,000 lots, which is typical of a busy day in oil.Benchmark Brent oil the session down 60 cents at $44.86.
The material has been provided by InstaForex Company – www.instaforex.com