Global Markets:
- Asian stock markets: Nikkei down 0.20 %, Shanghai Composite gained 0.40 %, Hang Seng fell 1.50 %, ASX 200 lost 1.00 %
- Commodities: Gold at $1092.40 (+0.40 %), Silver at $14.51 (+0.70 %), WTI Oil at $44.20 (+0.70 %), Brent Oil at $48.10 (+0.20 %)
- Rates: US 10 year yield at 2.33, UK 10 year yield at 2.05, German 10 year yield at 0.67
News & Data:
- China CPI (YoY) Oct: 1.3% (exp 1.5% prev 1.6%)
- China PPI (YoY) Oct: -5.9% (exp -5.9% prev -5.9%)
- Australia Home Loans (MoM) Sep: 2.0% (exp 0.0% prev 2.9%)
- Australia Investment Lending (MoM) Sep: -8.5% (prev -0.4%)
- Australia NAB Business Conditions (Oct): 9 (prev 9)
- Australia NAB Business Confidence (Oct): 2 (prev 5)
- Japan BoP Trade Balance (Sep): JPY 82.3 Bln (exp JPY 85.3 Bln prev JPY -326.1 Bln)
- New Zealand REINZ House Sales (YoY) Oct: 18.6% (prev 38.3%)
- PBoC Fixes Yuan Reference Rate At 6.3602 (prev 6.3578)
Markets Update:
The Euro came again under pressure after Reuters reported that a consensus is forming at the ECB to lower interest rates even further into negative territory at its next meeting in December. One ECB source told Reuters that a deposit rate cut could be even larger than the 0.1 % the market is currently expecting. While this is just speculation for now, it was enough to send the EUR/USD from 1.0780 down to 1.0730. In Asia, the pair consolidated between 1.0745 and 1.0760. The next major support level lies at 1.0710, which is Friday's low.
While the Euro fell, the Pound was able to recover somewhat after having a tough week. It bounced from 1.5040 and reached a high of 1.5125 yesterday. Traders are now looking forward to UK employment data tomorrow. Better than expected numbers could lead to a short squeeze in GBP/USD, with 1.5240 now the key resistance level.
USD/JPY was quiet as usual and spent the Asian session in a 123.02-25 range. Intraday support is expected at 122.70, with 122.00 now being the key short-term support level. Not much to report about Aussie and the NZ Dollar; both are little changed against the USD. AUD/USD is consolidating between 0.7020 and 0.7070 post-NFP. Major support now lies at 0.6935 (September lows), while resistance is seen at 0.7100/10.
Upcoming Events:
- 06:45 GMT – Swiss Unemployment Rate
- 07:45 GMT – French Industrial Production
- 09:00 GMT – Italian Production
- 09:00 GMT – Norwegian CPI
- 20:05 GMT – RBNZ Governor Wheeler speaks
