Global Markets:
- Asian stock markets: Nikkei up 0.15 %, Shanghai Composite gained 0.80 %, Hang Seng declined 1.00 %, ASX 200 rose 0.80 %
- Commodities: Gold at $1260 (-0.50 %), Silver at $18.58 (-0.85 %), WTI Oil at $44.55 (-0.25 %), Brent Oil at $45.80 (-0.15 %)
- Rates: US 10 year yield at 2.14, UK 10 year yield at 1.35, German 10 year yield at 0.29
News & Data:
- South Korea Interest Rate Decision Nov: 1.25% (est. 1.25%, prev. 1.25%)
- New Zealand BusinessNZ Manufacturing PMI Oct: 55.2 (prev. 57.7)
- New Zealand Food Price Index (MoM) Oct: -0.8% (prev -0.90%)
- Japan Reuters Tankan Index (Nov) Nov: 14 (prev 10)
- Japan PPI (MoM) Oct: -0.1% (est. -0.10%, prev. 0.00%)
- Japan PPI (YoY) Oct:-2.7% (est. -2.70%, prev. -3.20%)
Markets Update:
This volatile trading week ended quietly in Asia, with little changes in the major FX pairs. Most of the major Asian stock indices rose overnight, with the Shanghai Composite and ASX 200 up more than 0.80 %.
In FX, the US Dollar retraced slightly. USD/JPY fell to a low of 106.25, after another failure to reach the 107 resistance level. Below 106.25, support is seen at 105.95, followed by 105.20. To the topside, the next major resistance level lies at 107.50.
EUR/USD opened around 1.0875 in Asia and rose to a high of 1.0925, while Cable made it from 1.2525 to 1.2575. The commodity currencies caught a bid as well, with AUD/USD bouncing off 0.7560 and rallying to 0.7625. AUD/USD has declined below a key trendline support level, and the sharp rejection at 0.7775 on Wednesday suggests that further losses are ahead.
Now that the US elections are behind us, the markets will be focused on comments from Trump about his future policy plans, but also on the Federal Reserve and whether they will hike rates next month. The market sees the odds of a hike at more than 80 % at the moment.
Upcoming Events:
- 07:00 GMT – German CPI
- 14:00 GMT – FOMC Member Fischer speaks
- 15:00 GMT – US Michigan Consumer Sentiment
- 15:50 GMT – Bank of Canada Governor Poloz speaks
