Posted at 03 November 2021 / Categories Market Roundups
Market Roundup
• UK Oct Nationwide HPI (YoY) 0.7%, 9.3% forecast, 10.0% previous
• UK Oct Nationwide HPI (MoM) 0.7% 0.4% forecast, 0.1% previous
• Spanish Unemployment Change -0.7K, -76.1K previous
•UK Oct Services PMI 59.1, 58.0 forecast, 58.0 previous
•UK Oct Composite PMI 57.8,56.8 forecast, 56.8 previous
•EU Sep Unemployment Rate 7.4%,7.4% forecast, 7.5% previous
Looking Ahead Economic Data (GMT)
•12:15 US Oct ADP Nonfarm Employment Change 400K forecast, 568K previous
•12:30 US Sep Trade Balance -80.50B forecast, -73.30B previous
•13:45 US Oct Markit Composite PMI 57.3 forecast, 55.0 previous
•13:45 US Oct Services PMI 58.2 forecast, 54.9 previous
•14:00 US Oct ISM Non-Manufacturing Employment 53.0 previous
•14:00 US Oct ISM Non-Manufacturing PMI 62.0 forecast, 61.9 previous
•14:00 US Oct ISM Non-Manufacturing Business Activity 59.5 forecast, 62.3 previous
•14:00 US Sep Factory Orders (MoM) 0.1% forecast, 1.2% previous
•14:30 US Sep Cushing Crude Oil Inventories -3.899M previous
•14:30 US Sep Crude Oil Inventories 2.225M forecast, 4.267M previous
Looking Ahead Economic Data (GMT)
•14:30 ECB's Elderson Speaks
•18:00 US Fed Interest Rate Decision 0.25% forecast, 0.25% previous
•18:00 US FOMC Statement
•19:00 US FOMC Press Conference
Fxbeat
EUR/USD: The euro hovered around 1.1584 against dollar on Wednesday as investors awaited outcome of a U.S. Federal Reserve policy meeting. Market focus was also on the result of the Fed meeting, as investors looked to assess how the U.S. central bank plans to combat rising inflation and ease worries about economic recovery.The Fed on Wednesday is expected to approve plans to scale back its $120 billion monthly bond-buying program put in place to help the economy during the pandemic. Investors will also be focused on commentary about interest rates. Immediate resistance can be seen at 1.1600 (38.2%fib), an upside break can trigger rise towards 1.1653 (50%fib).On the downside, immediate support is seen at 1.1536 (23.6 % fib), a break below could take the pair towards 1.1510 (Lower BB).
GBP/USD: Sterling was broadly unchanged on Wednesday but within striking distance of its almost three-week lows versus the dollar ahead of crucial central bank policy meetings in Britain and the United States. Investors expect the Federal Reserve to detail plans to end its pandemic-era bond purchases by mid-2022 on Wednesday as policymakers shift their focus towards what to do about a surge in inflation that is lasting longer than expected. Sterling by 11:0GMT, was flat against the dollar at $1.3623 not far from the low of $1.3606 hit on Oct. 13Immediate resistance can be seen at 1.3638(38.2%fib), an upside break can trigger rise towards 1.3672 (5DMA).On the downside, immediate support is seen at 1.3565 (23.6%fib), a break below could take the pair towards 1.3515(Lower BB).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as investors waited for the U.S. Federal Reserve to start unwinding its pandemic-era stimulus and to assess Chair Jerome Powell's take on inflationary pressures Investors will watch closely for Chair Powell's assessment of inflation after other central banks have signalled a more hawkish tilt in the face of rising price pressures, although whether that means higher interest rates soon is still to be seen The dollar index traded unchanged on the day at 94.11 , close to its 2021 peak of 94.563 hit last month.Immediate resistance can be seen at 0.9129 (5 DMA), an upside break can trigger rise towards 0.9141 (38.2% fib).On the downside, immediate support is seen at 0.9101 (23.6%fib), a break below could take the pair towards 0.9086 (Lower BB ).
USD/JPY: The dollar held within striking distance of the year's peaks against yen on Wednesday as investors looked for the Federal Reserve to begin unwinding pandemic-era policy support faster than central banks in Europe and Japan. The Fed is expected to announce the tapering of its $120 billion-a-month asset purchase programme in its policy statement at 1800 GMT. But traders are focused on clues around what that means for timing of rate rises, after a month of seismic moves in the bond market in anticipation of hikes as soon as next year. Strong resistance can be seen at 114.37 (23.6%fib), an upside break can trigger rise towards 115.00 (Psychological level).On the downside, immediate support is seen at 113.78(38.2% fib), a break below could take the pair towards 113.37 (50%fib).
Equities Recap
European shares hit fresh record highs on Wednesday, as a recent run of upbeat corporate earnings and a recovery in metal prices outweighed losses from a slide in oil stocks.
At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading down at 0.28 percent, Germany's Dax was down by 0.02 percent, France’s CAC was last up by 0.03 percent.
Commodities Recap
Gold prices eased on Wednesday, ahead of a crucial Federal Reserve decision, as investors await cues on the U.S. central bank’s plan to taper its pandemic-induced stimulus amid signs of rising inflation.
Spot gold fell 0.4% to $1,780.60 per ounce by 0937 GMT. U.S. gold futures for December delivery slipped 0.4% to $1,782.10 per ounce.
Oil prices fell on Wednesday as industry data pointed to a big build in crude oil and distillate stocks in the United States, the world's largest oil consumer, and as pressure mounted on OPEC to increase supply.
Brent crude futures were down $1.38, or 1.6%, to $83.34 a barrel at 0950 GMT. U.S. West Texas Intermediate (WTI) crude futures tumbled $1.60, or 1.9%, to $82.31 a barrel.