Global Markets:
- Asian stock markets: Nikkei down 0.20 %, Hang Seng gained 0.65 %, ASX fell 0.10 %
- Commodities: Gold at $1147.80 (+0.10 %), Silver at $15.91 (-0.45 %), WTI Oil at $49.10 (+1.15 %), Brent Oil at $52.25 (+0.15 %)
- Rates: US 10 year yield at 2.04, UK 10 year yield at 1.80, German 10 year yield
News & Data:
- Bank of Japan leaves rates and size of QQE programme unchanged
- BoJ: Japan's Economy Has Continued To Recover Moderately
- BoJ: To Watch Risks, Adjust Policy As Appropriate
- BoJ: To Continue QQE Until Stable 2% Inflation Maintained
- BoJ: CPI Likely To Be About 0% For Time Being
- BoJ: 8-1 vote to keep rates & QQE unchanged
- China FX Reserves (Sep): USD3.51 trillion
- Moody’s: China Real GDP To Grow 6.8% In '15
- Moody’s: China Real GDP to Grow 6.3% in '16 (prev 6.5%)
- Fed’s Williams: Signs Global Growth Has Slowed More Than Expected
- Fed’s Williams Still Thinks It Makes Sense to Raise Rates In 2015. But Will Listen To Debate — RTRS
Markets Update:
The US Dollar weakened in the past few two trading sessions and commodity currencies were the best performing ones. AUD/USD gained after the RBA was less dovish in their statement and amid general improvement in risk appetite. AUD/USD opened around 0.7160 in Sydney, fell briefly to 0.7140 and then steadily rose, reaching a high of 0.7180. The pair is continuing to post fresh intraday highs as we are heading into the European open. NZD/USD has been well bid too, rising from 0.6540 in the late NY session to 0.66 in Tokyo.
The Bank of Japan kept interest rates and the size of their QE programme unchanged, which led to a decline in USD/JPY to 119.75. There was increased speculation about further easing from the BoJ and some short-term specs covered their long positions after this was proved wrong. Stops below 119.90 accelerated the move. Bids are expected in front of the 119.50 level, as well as between 119.00 and 119.10.
EUR/USD spent the Asian session in a 1.1260-85 range, while GBP/USD was able to extend gains overnight. After being stuck in a tight range for two weeks, the pair finally took out the 1.5245 resistance level and rallied to 1.5255.
Upcoming Events:
- 07:00 BST – German Industrial Production
- 07:45 BST – French Trade Balance
- 08:05 BST – RBA Assistant Governor Debelle speaks
- 09:30 BST – UK Industrial Production
- 09:30 BST – UK Manufacturing Production
- 13:30 BST – Canadian Building Permits
