Market Roundup
- U.S. consumer prices rise, may further support rate hike views.
- U.S. October industrial output falls (-0.2%), second straight month.
- Dollar gains after U.S. data hardens December Fed hike view.
- S&P/US yields move lower after report of bomb threat in Hanover.
- Soccer-Germany v Netherlands friendly called off for fear of attack-police.
- Oil -2%, market focused on global supply glut; Stockpile builds anticipated; poll sees 1.6mln bbls rise.
- Fed’s Powell: regulators are now evaluating benefits of expanding repo clearing.
- New Zealand’s Fonterra: Dairy prices fall (-7.9%), volumes drop 11.6% from last auction.
- Sterling hits three-month high vs euro, sub-0.70, as UK core prices rise.
- Fed’s Yellen urges rejection of rule-based monetary pol proposal, bill would hurt Fed independence.
- IMF cuts Mexico economic outlook as oil output falls, calls for end to FX interventions.
Looking Ahead – Economic Data (GMT)
- 00:30 Australia Wage Price Index*QQ Q3 forecast 0.6%, 0.6%-previous
- 00:30 Australia Wage Price Index YY*Q3 forecast 2.3%, 2.3%-previous
- 01:30 China- China House Prices YY*Oct -0.9%-previous
Looking Ahead – Events, Other Releases (GMT)
- –:– Japan- Bank of Japan Monetary Policy Meeting (to Nov 19)
- 22:10 Australia-RBA’s Guy Debelle Speaks at Bloomberg Summit in Sydney
Currency SummariesEUR/USD is likely to find support at 1.0600 levels and currently trading at 1.0652 levels. The pair has made session high at 1.0673 and hit lows at 1.0629 levels. The dollar inched higher against euro on Tuesday as the dollar was strongly supported by strong U.S. inflation data which reinforced optimism that the Federal Reserve will raise interest rates next month. Weaker-than-expected industrial output data pared the dollar’s gains later in the session, but the greenback overall remained close to multi-month highs against euro. The euro is under pressure as the as the euro is broadly sold across the board on expectations that European Central Bank will step up monetary easing next month, and more likely cut interest rates into negative levels and may buy more assets under its quantitative easing program. In mid-morning trading, the euro was down 0.2 percent versus the greenback at $1.0662. To the upside, immediate resistance can be seen at 1.00657. To the downside, immediate support level is located at 1.0627 levels.GBP/USD is supported in the range of 1.5150 and currently trading at 1.5212 levels. It reached session high at 1.5241 and hit low at 1.5187 levels. Sterling rose to 5-day highs against the dollar on Tuesday, after data showed UK inflation modestly accelerated in October. Official date showed headline consumer price inflation came in line with expectations, in addition PPI input also came In line with expectation at 0.2.Meanwhile core PPI output came negative against the forecast at 0.3. Sterling inched higher to $1.5213 after the data from around $1.5173 gradually reaching high at 1.5239 in the early US session, after core inflation data had declined against of late against dollar after comments from a senior Bank of England policymaker, Andy Haldane, who recently said an interest rate increase by the U.S. Federal Reserve would not automatically lead to a response in Britain. To the upside, immediate resistance can be seen at 1.5236. To the downside, immediate support level is located at 1.5180 levels.USD/JPY is supported around 123.00 levels and currently trading at 123.34 levels. It hit session high at 123.41 and made session lows at 123.20 levels. The US dollar surged against Japanese’s Yen on Tuesday after data showed that, U.S. consumer prices increased in October after two consecutive months of declines as the cost of healthcare and other services rose, evidence of firming inflation that further supports views that the Federal Reserve will raise interest rates next month. The Labor Department said on Tuesday its Consumer Price Index increased 0.2 percent last month, reversing September’s 0.2 percent drop. In the 12 months through October, the CPI advanced 0.2 percent after being unchanged in September. In mid-morning trading, the dollar rose 0.4 percent against the Swiss franc to 1.0128 francs.. Against the yen, the dollar was up 0.2 percent at 123.370. To the upside, immediate resistance can be seen at 123.49. To the downside, immediate support level is located at 123.17 levels.USD/CAD is supported at 1.3300 levels and is trading at 1.3323 levels. It has made session high at 1.3368 and lows at 1.3318levels. The Canadian dollar made modest gain against the U.S. dollar on Tuesday, after as crude oil prices recovered earlier losses suffered during US session and U.S. inflation data failed to impress the dollar bulls which came in line with expectations. Crude oil, which rallied on Monday on heightened geopolitical tensions following the Paris attacks, still traded lower on Tuesday as the focus returned to global oversupply. Canadian government bond prices were lower across the maturity curve, pressured by the rotation into stocks and U.S. inflation data that supported the view that the Federal Reserve will raise interest rates next month. To the upside, immediate resistance can be seen at 1.3329. To the downside, immediate support level is located at 1.3300 levels.Equities RecapEuropean stocks closed higher on Tuesday, after investors sentiment cooled down after Friday’s deadly terror attacks in Paris.UK’s benchmark FTSE 100 closed up by 0.3 percent, the pan-European FTSEurofirst 300 ended the day up by 01 percent, Germany’s Dax ended up by 0.2 percent, France’s CAC finished the day up by 0.2 percent.U.S. stocks erased gains on Tuesday, after a bomb scare in soccer stadium in Germany created terror fears, unnerving investors.Dow Jones closed up by 0.03 percent, S&P 500 ended down by 0.12 percent, Nasdaq finished the day up by 0.02 percent.Treasuries RecapLonger-dated U.S. Treasuries prices rose on Tuesday as worries that more terror acts would follow Friday’s attacks in Paris spurred safe-haven demand for low-risk government bonds.The benchmark 10-year Treasuries were up 3/32 in price with a yield of 2.261 percent, down 1 basis point from Monday, while the 30-year bond was 15/32 higher in price, yielding 3.048 percent, down 2 basis points on the day.The two-year yield, which is sensitive to changes in traders’ view on Fed policy, was unchanged at 0.851 percent.Commodities RecapGold prices fell more than 1 percent to the lowest price in nearly six years on Tuesday, pressured by expectations that the United States will raise interest rates in December, and as the dollar rose and stocks rebounded from losses suffered after Friday’s attacks in Paris.Spot gold was down 1 percent at $1,071.96 an ounce at 3:19 p.m. EST (2019 GMT), after falling to $1,065.18, the lowest since February 2010.U.S. gold futures for December delivery settled down 1.4 percent at $1,068. oil futures fell more than 2 percent on Tuesday, resuming their slide after a one-day pause, as oversupply concerns returned to suppress a market briefly lifted by geopolitical worries linked to the Paris attacks.Brent crude futures settled down 99 cents at $43.57 a barrel, touching a session low at $43.50. The global oil benchmark is less than $2 from rewriting its 6-1/2 year bottom of $42.23 set in August.U.S. crude’s West Texas Intermediate (WTI) futures settled down $1.07 at $40.67 a barrel.
The material has been provided by InstaForex Company – www.instaforex.com