Mixed overnight session, Tokyo closed the session at 00:26 +% in a slight contrast to Shanghai and Hong Kong -0.73% -0.83%. In Europe, all the main indices, after an encouraging opening, all have turned into negative territory.
Commodities continue their sideways movement, with metals an oils trading within ranges for the past few sessions. Brent is trading at $ 51.80 / barrel, while WTI continues to remain fairly stable at $ 50.60 / barrel. Oil has received a boost of late with expectation of an output cap deal by OPEC.
Interest rates continue to remain fairly stable from the United States to Europe, especially at the long end of the curve, mainly due to the consolidation of beliefs that the Fed will raise rates in December after confirmations have come on several occasions in recent weeks by various members of the Federal Reserve.
Market Movers
17:35 GMT – EUR – ECB President Draghi Speaks
21:10 GMT – AUD – RBA Gov Lowe Speaks
21:45 GMT – NZD – CPI q/q
EUR/USD – The single currency continues to consolidate under 1.10 with a recovery in the opening of European markets from the lows in the 1.0960 area to 1.0990. The Eurozone shows signs of recovery with inflation data out this morning in line with expectation. There are some figures out later in the US, manufacturing and industrial, and positive showing from these could see the EUR/USD test the 1.09 level.
GBP/USD – The Pound continues to suffer from internal political tensions in the UK, with little expected out today to provide any support. Tomorrow we have inflation data in the morning, with the Consumer Price Index the first up at 08:30 GMT. The BoE uses CPI data in its decision making process and the forecast is for an increase to 0.9% y/y.
USD/JPY – We’re seeing further weakness in the Yen and continued strength in the Dollar. Overnight we see Revised Industrial Production m/m come in @ 1.3% and below expectations of 1.5%.