Global Markets:
- Asian stock markets: Nikkei down 0.05 %, Shanghai Composite lost 0.90 %, Hang Seng rose 0.20 %, ASX 200 declined 0.30 %
- Commodities: Gold at $1192 (+0.15 %), Silver at $16.77 (+0.15 %), WTI Oil at $45.50 (+0.60 %), Brent Oil at $47.65 (+0.70 %)
- Rates: US 10-year yield at 2.30, UK 10-year yield at 1.36, German 10-year yield at 0.22
News & Data:
- Japan Industrial Production (MoM) Oct, P: 0.1% (est -0.1% prev 0.6%)
- Japan Industrial Production (YoY) Oct, P: -1.3% (est -1.3% prev 1.5%)
- Australia Building Approvals (MoM) Oct: -12.6% (est 2.0% prev -8.7%)
- Australia Building Approvals (YoY) Oct: -24.9% (est -6.2% prev -6.4%)
- Australia Private Sector Credit (MoM) Oct: 0.5% (est 0.4% prev 0.4%)
- Australia Private Sector Credit (YoY) Oct: 5.3% (est 5.2% prev 5.4%)
- New Zealand ANZ Activity Outlook: 37.6 (prev 38.4)
- New Zealand ANZ Business Confidence: 20.5 (prev 24.5)
- UK Lloyds Business Barometer (Nov): 32 (prev 37)
- UK GfK Consumer Confidence (Nov): -8 (est -4 prev -3)
- PBoC Fixes USDCNY Reference Rate At 6.8865 (prev 6.8889)
- RBNZ's Spencer: GDP Outlook Little Change by November Earthquake – RTRS
- RBNZ Governor Wheeler: Expect Dec CPI To Be Back in Target Band Just Above 1%
Markets Update:
The US Dollar gained some strength overnight, underpinned by the rise in US yields. USD/JPY bounced off 112.00 ahead of the Tokyo open and rallied to a high of 113.00. While the pair still looks overbought in the short-term, it remains resilient, and runs into decent buying interest on every larger dip.
EUR/USD fell back to 1.0560 in yesterday's NY session, but managed to recover from there and rose to a high of 1.0660 in Asia. However, worries about the upcoming Italy referendum will likely prevent any larger EUR gains.
GBP/USD consolidated between 1.2470 and 1.2495 overnight, with flows light. The commodity currencies declined slightly, with AUD/USD falling from 0.75 to 0.7460, and NZD/USD from 0.7160 to 0.7130.
Expect high volatility in Oil and the Canadian Dollar today, as the OPEC will meet and announce their decision. The market is rather sceptic about whether the organization will be able to reach a deal to cut output.
Upcoming Events:
- 07:00 GMT – German Retail Sales
- 07:45 GMT – French CPI
- 08:55 GMT – German Unemployment Rate
- 08:55 GMT – German Unemployment Change
- 10:00 GMT – Italian CPI
- 10:00 GMT – Euro Zone CPI
- 12:30 GMT – ECB President Draghi speaks
- 13:15 GMT – US ADP Nonfarm Employment Change
- 13:30 GMT – US Personal Income
- 13:30 GMT – US Personal Spending
- 13:30 GMT – Canadian GDP
- 15:00 GMT – US Pending Home Sales
- 15:30 GMT – US Crude Oil Inventories
- 16:45 GMT – FOMC Member Powell speaks
- 17:35 GMT – FOMC Member Mester speaks
- 22:30 GMT – Australia AIG Manufacturing Index
