Global Markets:
- Asian stock markets: Nikkei up 1.35 %, Shanghai Composite gained 0.75 %, Hang Seng rose 0.35 %, ASX rallied 0.60 %
- Commodities: Gold at $1179.80 (-0.65 %), Silver at $16.09 (-0.50 %), WTI Oil at $46.82 (+0.95 %), Brent Oil at $50.08 (-0.40 %)
- Rates: US 10 year yield at 2.01, UK 10 year yield at 1.78, German 10 year yield at 0.57
News & Data:
- New Zealand CPI (QoQ) Q3: 0.3% (exp 0.2% prev 0.4%)
- New Zealand CPI (YoY) Q3: 0.4% (exp 0.3% prev rev 0.4%)
- PBoC Fixes Yuan Reference Rate At 6.3436 (prev 6.3402)
- Fed's Mester Repeats That US Economy Can Handle Interest Rate Rise
- Mester: Zero Rates For Too Long Could Sap Financial Stability — BBG
- Mester: Would Be Mistake To Wait Until Inflation Is 2% Before Moving — MNI
- Venezuelan President Maduro: Oil Needs A Floor Of $70/Bbl To Be Viable — BBG
- Oil prices snap week-long fall on U.S. output decline, gasoline drawdown – RTRS
- Asian shares rise to two-month highs, dollar gains on U.S. data – RTRS
- Dollar supported by U.S. inflation data, ECB easing expectations – RTRS
Markets Update:
The US Dollar recovered somewhat after higher than expected US inflation data, as well as better than expected Initial Jobless Claims numbers. EUR/USD fell from 1.1490 to a low of 1.1360 and traded in a 1.1360-95 range in Asia. Aside from the good US economic data, dovish comments from ECB’s Nowotny also added to the negative EUR sentiment.GBP/USD is relatively stable. It had a brief dip to 1.5420 after the US data was released, but quickly recovered and eventually got back above 1.55 ahead of the NY close. In the Asian session, Cable was trading within a 1.5440-80 range.
Meanwhile, USD/JPY recovered after seeing heavy selling in the previous two days. The pair found good support ahead of the 118.00 level and rallied to 118.80 post-CPI. In Asia, it was able to extend gains and reached the 119.20 level. Key resistance is now seen in the 119.40-50 area.
The New Zealand Dollar had a brief spike higher after the better than expected NZ inflation data, but it momentum quickly faded. The pair fell from 0.6880 to 0.6820 and spent the rest of the session in a .6820-40 range.
Upcoming Events:
- 07:35 BST – BoJ Governor Kuroda speaks
- 10:00 BST – Euro Zone CPI
- 10:00 BST – Euro Zone Trade Balance
- 13:30 BST – Canadian Manufacturing Sales
- 14:15 BST – US Industrial Production
- 14:15 BST – US Manufacturing Production
- 15:00 BST – US JOLTs Job Openings
- 15:00 BST – US Michigan Consumer Sentiment
