Posted at 27 October 2021 / Categories Market Roundups
Market Roundup
•US Wholesale Inventories (MoM) 1.1% ,1.2% previous
•US Sep Durable Goods Orders (MoM) -0.4%, -1.1% forecast, 1.8% previous
•US Sep Goods Trade Balance -96.25B, -88.16B previous
•US Sep Core Durable Goods Orders (MoM) 0.4%,0.4% forecast, 0.3% previous
•US Sep Goods Orders Non Defense Ex Air (MoM) 0.8%,0.5% forecast, 0.6% previous
•US Sep Durables Excluding Defense (MoM) -2.0%,2.4% previous
•US Cushing Crude Oil Inventories -3.899M,-2.320M previous
•US Crude Oil Inventories 4.267M,1.914M forecast, -0.431M previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Foreign Bonds Buying 1,221.3B previous
•23:50 Japan Foreign Investments in Japanese Stocks 960.1B previous
•23:50 Japan Large Retailers' Sales (MoM) -4.7% previous
•05:20 Japan Oct CPI Tokyo Ex Food and Energy (MoM) -0.2% previous
•05:20 Japan Sep Unemployment Rate 2.8% forecast, 2.8% previous
•05:20 Japan Sep Jobs/applications ratio 1.14 forecast, 1.14 previous
•05:20 Japan Oct Tokyo Core CPI (YoY) 0.3% forecast, 0.1% previous
•05:20 Japan Sep Industrial Production (MoM) -3.2% forecast, -3.6% previous
•06:00 Australia PPI (QoQ) (Q3) 0.7% previous
•06:00 Australia Sep Private Sector Credit (MoM) 0.6% forecast, 0.6% previous
•06:00 Australia Sep PPI (YoY) (Q3) 2.2% previous
•06:00 Australia Sep Retail Sales (MoM) 0.2% forecast, -1.7% previous
Looking Ahead - Events, Other Releases (GMT)
• 12:00 Japan BoJ Press Conference
Currency Sumarries
EUR/USD: The euro declined on Wednesday as expectations that the European Central Bank will take a dovish stance when it meets on Thursday attracted sellers in the pair. The ECB is expected to keep policy unchanged and leave a decision on its pandemic emergency bond purchase programme to December, but its president Christine Lagarde is expected to push back on market pricing that has seen breakeven inflation expectations hit seven-year highs above the ECB’s 2% target and a rate hike priced in for next year. Immediate resistance can be seen at 1.1618 (5DMA), an upside break can trigger rise towards 1.1656(38.20%fib).On the downside, immediate support is seen at 1.1588 (23.6%fib), a break below could take the pair towards 1.1535(Lower BB).
GBP/USD: The pound rebounded from intraday lows on Wednesday after British finance minister Rishi Sunak announced stronger economic growth and lower public borrowing forecasts. Announcing forecasts made by the Office of Budgetary Responsibility (OBR), Sunak said in its budget report that the economy could grow 6.5% in 2021, faster than a forecast of 4.0% made in March , while Britain was still in coronavirus. lockdown. By 22:30 GMT, sterling traded marginally higher at $1.3740 against the dollar. Immediate resistance can be seen at 1.3764(9DMA),an upside break can trigger rise towards 1.3795(23.6%fib).On the downside, immediate support is seen at 1.3716(38.2%fib), a break below could take the pair towards 1.3650(50%fib).
USD/CAD: The loonie strengthened against its US counterpart on Wednesday as the Bank of Canada signaled it could hike rates earlier than previously thought and became the first G7 central bank to pull out of quantitative easing . The BoC stuck to leave rates on hold until the economic slowdown is absorbed, but now expects it will happen sometime in mid-2022 rather than the second half of 2022. The Canadian dollar was last trading 0.5% higher at 1.2354 to the greenback. Immediate resistance can be seen at 1.2377 (38.2%fib), an upside break can trigger rise towards 1.2429 (50% fib).On the downside, immediate support is seen at 1.2310 (23.6%fib), a break below could take the pair towards 1.2244 (Lower BB).
USD/JPY: The dollar declined against yen on Wednesday as the Bank of Canada started off a series of awaited central bank policy comments that could bring more volatility to what had been a relatively steady market.The moves took the U.S. dollar index down 0.2% to 93.73 and as the dollar weakened against euro. Currency markets had moved little in the first two days of this week as traders paused for monetary policy announcements from major central banks around the world, including the U.S. Federal Reserve, which meets next week. Strong resistance can be seen at 114.42 (38.2%fib), an upside break can trigger rise towards 114.78(23.6%fib).On the downside, immediate support is seen at 113.78(50%fib), a break below could take the pair towards 113.36(61.8%fib).
Equities Recap
European stocks slipped on Wednesday, with miners leading the declines after concerns about Chinese intervention hit metal prices, while mixed corporate earnings reports kept investors on edge.
UK's benchmark FTSE 100 closed down by 0.33%percent, Germany's Dax ended down by 0.33% percent, France’s CAC finished the day down by 0.19 percent.
The Nasdaq ended little changed on Wednesday, boosted by gains in Microsoft and Google parent Alphabet on the heels of their quarterly results, but a drop in oil prices and a pullback in Treasury yields weighed on cyclical sectors and pulled the S&P 500 lower.
Dow Jones closed down by 0.74%percent, S&P 500 closed down by 0.51% percent, Nasdaq ended little changed by 0.00 % percent.
Treasuries Recap
The U.S. 2-year Treasury yield rose to a 19-month high on Wednesday, occasioning the sharpest flattening of one yield curve yardstick since the pandemic started amid heightened anticipation of a Federal Reserve interest rate rise next year.
U.S. 10-year yields dropped to a two-week low of 1.52% and were last at 1.5378%. The widely watched spread between the 2- and 10-year yields fell to 103.7 basis points, from 116.4
Commodities Recap
Gold prices edged higher in seesaw trading on Wednesday, buoyed by a fall in U.S. bond yields and a softer dollar, although strong risk appetite in equity markets kept bullion’s gains in check.
Spot gold was up 0.2% at $1,796.55 per ounce by 01:47 p.m. ET (1747 GMT), after falling as much as 0.6% earlier in the session. U.S. gold futures settled 0.3% higher at $1,798.80 per ounce.
Oil prices fell on Wednesday after U.S. crude oil stockpiles rose more than expected, even as fuel inventories dropped and tanks at the nation's largest storage hub emptied further.
Brent oil futures ended down $1.82, or 2.1%, to $84.58 a barrel, after closing at a seven-year high on Tuesday. U.S. West Texas Intermediate (WTI) crude settled down $1.99, or 2.4%, to $82.66 a barrel.