Market Roundup
- U.S. Oct wholesale inventories fall 0.1 pct may weigh on Q4 GDP, wholesale sales ‘unchanged’.
- USD slumps, EUR resumes rally, oil rebound fleeting, Oil gives up earlier gains, distillate build cited.
- RBNZ reduces OCR 25bps to 2.5%, says further fall in NZD will be appropriate, sees home prices moderating, global dairy prices to gradually recover, and interest rates currently stimulatory.
- Fonterra says maintains 2015/16 farmgate milk price, Will provide some NZ$390 million in support to around 75 per cent of our farmers through the most productive half of the season.
- South Africa’s President Zuma changes finance minister, ZAR hits all-time low (15.30).
- Brazil’s top court suspends impeachment of Rousseff.
- Moody’s places Brazil’s Baa3 issuer and bond ratings on review for downgrade.
- German chancellor Angela Merkel named “Person of the Year” by Time.
Looking Ahead – Economic Data (GMT)
- 21:45 New Zealand Election Card Retail Sales month Nov 0%-previous
- 21:45 New Zealand Election Card Retail Sales YY* Nov 5.6%-previous
- 23:50 Japan Foreign Bond Investment w/e -156.7b-previous
- 23:50 Japan Foreign Invest JP Stock w/e -54.6b-previous
- 23:50 Japan Corp Goods Price MM* Nov forecast -0.3%, -0.6%-previous
- 23:50 Japan Corp Goods Price YY* Nov forecast -3.8%, -3.8%- previous
- 23:50 Japan Business Survey Index* Q4 11- previous
- 00:30 Australia Employment*Nov forecast -10.0k, 58.6k- previous
- 00:30 Australia Full Time Employment* Nov 40.0k- previous
- 00:30 Australia Participation Rate* Nov forecast 65%, 65%- previous
- 00:30 Australia Unemployment Rate*Nov forecast 6%, 5.9%- previous
Looking Ahead – Events, Other Releases (GMT)
- No Significant Events
Currency SummariesEUR/USD is likely to find support at 1.0930 levels and currently trading at 1.1026 levels. The pair has made session high at 1.1028 and hit lows at 1.0947 levels. The dollar fell against euro on Wednesday as the investors shifted back into the single currency. The euro and yen both hit one-month highs versus the dollar as traders reversed course that pushed the greenback to multi-month lows against both currencies. The ECB announced on Thursday it would cut its already negative deposit rate further, but said it would not add to its quantitative easing program, disappointing investors. The move sent the euro up 3.1 percent on the day, its biggest one-day percentage climb since March , The euro rose as high as $1.1028 in the US session, its highest since a surprisingly robust U.S. jobs report on Nov. 6 pushed the continental currency and major rivals down against the dollar. The euro was last up 0.60 percent to $1.1028. To the upside, immediate resistance can be seen at 1.1050. To the downside, immediate support level is located at 1.1000 levels.GBP/USD is supported in the range of 1.5115 and currently trading at 1.5176 levels. It reached session high at 1.5184 and hit low at 1.5163 levels. Sterling rose above $1.51 levels on Wednesday, advancing higher for the first time in four trading sessions, before a central bank rate-setting meeting where central bankers may change their recent cautious view about the currency. Traders expect the BoE to appear less cautious about the currency when it releases the minutes from the latest policy meeting on Thursday. The BoE’s Monetary Policy Committee is widely expected to keep rates unchanged on Thursday, but the minutes released the same day may take a more hawkish tack than recent rhetoric. Sterling was up 0.9 percent against the dollar at $1.5147, recovering from Tuesday’s low of $1.4956. It also rose against the euro, with the single currency down 0.1 percent at 72.50 pence, off a seven-week high of 72.79 pence struck on Tuesday. To the upside, immediate resistance can be seen at 1.5203. To the downside, immediate support level is located at 1.5140 levels.NZD/USD is supported around 0.6710 levels and currently trading at 0.6733 levels. It hit session high at 0.6757 and made session lows at 0.6569 levels. The New Zealand dollar rose against US dollar on Wednesday after the Reserve Bank of New Zealand cut rates, but said it could be the last easing of the cycle. The central bank cut benchmark interest rate to match a record low of 2.50 percent, saying it expected to achieve its inflation target without further easing. Reserve Bank of New Zealand Governor Graeme Wheeler said monetary policy should keep future inflation within the target range. The RBNZ is projecting annual inflation will rise back into its 1 to 3 percent range in the first quarter of 2016. The Kiwi dollar jumped a full cent to $0.6735, before stabilising around $0.6700, up 0.7 percent on the day. It initially dropped to $0.6562 after the rate cut before reversing its course. To the upside, immediate resistance can be seen at 0.6746. To the downside, immediate support level is located at 0.6711 levels.USD/CAD is supported at 1.3470 levels and is trading at 1.3507 levels. It has made session high at 1.3522 and lows at 1.3502 levels. The Canadian dollar edged higher against the U.S. dollar on Wednesday, helped by a bounce in crude oil prices, meanwhile it extended its recent losses against the euro. Oil prices rose on strong Japanese economic data and lower crude oil storage figures from the United States, but many investors expected prices to fall below 2008 lows due to a mounting global supply glut. The currency’s strongest level of the session was C$1.3544, while its weakest level was C$1. Canadian dollar had weakened to a fresh 11-year low against the greenback on Tuesday at C$1.3623, as a slump in crude oil prices to 2009 levels raised the prospect Canada’s central bank might have to take further accommodative measures. The domestic data calendar is bare. Third-quarter capacity utilization data and the October new housing price index are due for release on Thursday. To the upside, immediate resistance can be seen at 1.3594. To the downside, immediate support level is located at 1.3550 levels.Equities RecapEuropean shares declined on Wednesday to their lowest level in more than a month, weighed down by a drop at pharmaceuticals group Bayer and pressure on miner Anglo American.UK’s benchmark FTSE 100 closed flat, the pan-European FTSEurofirst 300 ended the day up by 0.38 percent, Germany’s Dax ended down by 0,6 percent, France’s CAC finished the day down by 0.8 percent.U.S. stocks were down late on Wednesday after reversing course earlier in the day as oil resumed its decline and investors took profits ahead of a Federal Reserve meeting next week that is expected to result in an interest rate hike.Dow Jones closed down by 0.41 percent, S&P 500 ended down by 0.76 percent, Nasdaq finished the day down by 1.47 percent.Treasuries Recap U.S. Treasury debt prices rose on Wednesday in thin volume, as a fall in oil prices and on the stock market prompted investors to seek safe-haven government bonds.In late trading, U.S. benchmark 10-year Treasury notes rose 6/32 in price to yield 2.214 percent, down from Tuesday’s 2.222 percent.The 30-year bond was up 3/32 in price to yield 2.969 percent, slightly up from 2.957 percent on Tuesday.U.S. two-year Treasury notes meanwhile, were up 1/32 in price, with a yield of 0.923 percent, down from Tuesday’s 0.943 percent. Last Thursday, two-year yields hit 0.994 percent, their highest since May 2010.Commodities RecapOil prices fell for a fourth day in a row on Wednesday after the market ignored an unexpected drawdown in U.S. crude stockpiles to focus on a build in distillates, including diesel, that came in twice as large than expected.Brent crude settled down 15 cents at $40.11 a barrel, after hitting a near seven-year low at $39.57.U.S. West Texas Intermediate (WTI) crude finished the session down 35 cents at $37.16.Gold prices flattened on Wednesday, giving back earlier gains as oil prices fell and shrugging off support from the weak U.S. dollar and shares as investors remained cautious ahead of an anticipated Federal Reserve rate hike next week.Spot gold rose 1 percent to a session high of $1,085.20 an ounce but was flat at $1,074.31 an ounce at 2:39 p.m. EST (1939 GMT). The metal is around $35 higher than a near-six-year low reached last week.U.S. gold futures for February delivery settled up $1.20 at $1,076.50 an ounce.
The material has been provided by InstaForex Company – www.instaforex.com