Global Markets:
- Asian stock markets: Nikkei up 0.10 %, Shanghai Composite lost 0.40 %, Hang Seng fell 0.20 %, ASX gained 0.35 %
- Commodities: Gold at $1091 (+0.30 %), Silver at $14.45 (+0.65 %), WTI Oil at $43.79 (-0.95 %), Brent Oil at $47.92 (+0.15 %)
- Rates: US 10 year yield at 2.34, UK 10 year yield at 2.03, German 10 year yield at 0.63
News & Data:
- Australia Westpac Consumer Confidence Index (Nov): 101.7 (prev 97.8)
- Japan Money Stock M2 (YoY) Oct: 3.6% (exp 3.8% prev 3.8%)
- Japan Money Stock M3 (YoY) Oct: 2.9% (exp 3.1% prev 3.1%)
- China Current Account Balance (Q3): USD 63.4 Bln
- PBoC Fixes Yuan Reference Rate At 6.3614 (prev 6.3602)
- RBNZ Gov Wheeler: No Further Macro-Prudential Measures In Mind Right Now, No Chance Of Rate Hike In Near Term — BBG
- BoE's Cunliffe: When rate rises come they will be limited and gradual
Markets Update:
The US Dollar weakened in the overnight session, despite no relevant news or data. EUR/USD broke sub-1.07 and the stops through 1.0680/85 were cleared. However, it found decent support ahead of 1.0670 and rallied from there, extending gains up to 1.0775 in Asia. GBP/USD continues to be well bid and made it to 1.5180 overnight, up 140 pips from the Monday opening level. The next major resistance levels are now 1.5220 and 1.5220. Keep in mind that we have UK employment data later today (at 0930 GMT), which will lead to greater volatility in the GBP pairs.
Meanwhile, USD/JPY gave up some gains as it failed to stay above 123.50 for long. it fell sub-123.00 overnight, but bids from local names at 122.75/80 prevented any further losses. NZD/USD briefly touched 0.65 in the late NY session, but bounce from there and is trading at fresh weekly highs at the moment. Next major resistance now lies at 0.6640 and a break above would pave the way for another 0.67 test.
Upcoming Events:
- 07:00 GMT – German WPI
- 09:30 GMT – UK Claimant Count Change
- 09:30 GMT – UK Unemployment Rate
- 10:30 GMT – Bank of England Governor Carney speaks
- 13:15 GMT – ECB President Draghi speaks
- 20:30 GMT – New Zealand Business PMI
