Global Markets:
- Asian stock markets: Nikkei up 0.20 %, Shanghai Composite fell 0.20 %, Hang Seng rose 0.25 %, ASX 200 gained 0.40 %
- Commodities: Gold at $1178 (-0.95 %), Silver at $16.34 (-0.35 %), WTI Oil at $47.60 (-0.75 %), Brent Oil at $48.55 (-0.90 %)
- Rates: US 10-year yield at 2.39, UK 10-year yield at 1.44, German 10-year yield at 0.26
News & Data:
- Japan National CPI (YoY) Oct: 0.1% (est. 0.00%, prev. -0.50%)
- Japan National Core CPI (YoY)Oct: -0.4% (est. -0.40%, prev. -0.50%)
- Tokyo CPI (YoY)Nov: 0.5% (est. 0.20%, prev. 0.10%)
- Tokyo Core CPI (YoY) Nov: -0.4% (est. -0.40%, prev. -0.40%)
- Malaysia CPI (YoY) Oct: 1.4% (est. 1.50%, prev. 1.50%)
- South Korea Consumer Confidence (Nov): 95.8 (est 101.9, prev 102)
- PBOC sets USD/CNY mid-point at 6.9168 (prev fix 6.9085, prev close 6.9180)
- Asian stocks pull ahead as dollar edges back, U.S. yields resume climb – RTRS
- Oil prices fall on strong dollar, trading thin ahead of OPEC meeting – RTRS
- Japan October consumer prices continue slide, yen falls may help BOJ – RTRS
Markets Update:
Japanese inflation data came in a bit higher than expected, but that didn’t help the Yen much, as USD/JPY rallied from 113.20 to a high of 113.90. Momentum remains strong, and the next significant resistance level lies around 116. Despite technical indicators showing that the pair is extremely overbought in the short-term, the trend is so far not displaying any signs of exhaustion.
The Euro recovered slightly in Asia, as it rose to 1.0580 against the Dollar. While it found solid support at 1.0520, it continues to run into strong selling interest on any larger rally. Cable was quiet overnight, and consolidated in a 1.2430-55 range.
The commodity currencies benefited from the positive risk sentiment, and AUD/USD rallied from 0.74 to a high of 0.7440, while NZD/USD rose from 0.6980 to 0.7025.
Gold remains under a lot of pressure, and it broke below 1180 support in Asia. It is likely to test 1130 support soon. Silver extended losses as well, and support is now seen at $15.80.
Upcoming Events:
- 09:30 GMT – UK GDP
- 14:45 GMT – US Services PMI
