Global Markets:
- Asian stock markets: Nikkei up 0.20 %, Shanghai Composite lost 0.48 %, Hang Seng down 0.23 %, ASX 200 fell 0.10 %
- Commodities: Gold at $1280.04 (0.19 %), Silver at $17.14 (-0.19 %), WTI Oil at $54.30 (0.01 %), Brent Oil at $60.56 (0.12 %)
- Rates: US 10-year yield at 2.36, UK 10-year yield at 1.34, German 10-year yield at 0.38
News & Data:
- (AUD) Trade Balance 1.75 B vs 1.42 B expected
- (AUD) Building Approvals m/m 1.5 % vs -0.9 % expected
- (USD) Federal Funds Rate <1.25 % vs <1.25 % expected
- (USD) Crude Oil Inventories -2.4 M vs -1.5 M expected
- (GBP) Manufacturing PMI 56.3 vs 55.8 expected
- (USD) ADP Non-Farm Employment Change 235 k vs 202 K expected
- (GBP) ISM Manufacturing PMI 58.7 vs 59.5 expected
- Trump expected to name Powell as next Federal Reserve chair on Thursday
- Oil stable as U.S. crude inventories fall despite rising production- RTRS
Markets Update:
Asia pacific equity markets were mixed early on Thursday tracking muted gains on Wall Street overnight. Investors also digested the Federal Reserve's decision to keep interest rates steady. The U.S. Federal Reserve expressed optimism about the economy, virtually cementing the case for a year-end rate hike as investors awaited the formal nomination of the next head of the central bank.
USDJPY down from highs of over 114.20 is currently seen trading around 113.90 as the Yen gained 0.2 percent against the USD early on Thursday. This is following a 0.5 percent drop for the Yen on Wednesday which pushed the Yen near its weakest level since July. The Nikkei 225 trended higher, adding over 0.10 percent after hitting its highest levels since 1996 in the prior session.
EURUSD had an active session reaching highs of over 1.1671 earlier on Thursday. Currently the EUR is valued at 1.1656 against the USD after climbing 0.3 percent. The dollar index, which tracks the dollar against a basket of currencies declined 0.3% and is currently valued at 94.52. The yield on 10-year Treasuries fell more than 1 basis point to 2.36 percent.
AUDUSD is higher on the day currently seen trading above 0.7710 as the AUD gained 0.5 percent against the USD. The Aussie climbed on positive economic data points- a bigger than expected trade surplus and better building approvals. Similarly, the NZDUSD gained over 50+ points and is currently seen trading at 0.6928 as the Kiwi rose 0.5 percent against the US Dollar.
Upcoming Events:
- 08:15 GMT – (EUR) Spanish Manufacturing PMI
- 09:30 GMT – (GBP) Construction PMI
- 12:00 GMT – (GBP) BOE Inflation Report
- 12:00 GMT – (GBP) MPC Official Bank Rate Votes
- 12:00 GMT – (GBP) Monetary Policy Summary
- 12:00 GMT – (GBP) Official Bank Rate
- 12:30 GMT – (GBP) BOE Gov Carney Speaks
- 12:30 GMT – (USD) Unemployment Claims
