November 01, 2018
Pulse of the Market
· U.S private employers added 227,000 jobs in October, above economists’ expectations
· The Euro has been under pressure by political uncertainty in Germany
· Sterling was higher as news of a possible Brexit deal as early as Nov. 21 boosted sentiment
· The Loonie struggled to leverage stronger-than-expected growth data from Canada
|The U.S Dollar inched down yesterday but remained near a 16-month high as upbeat data and rising Treasury yields increased demand for the greenback. The U.S dollar index, which measures the greenback’s strength against a basket of six major currencies, inched down 0.13% to 96.88. Private sector payrolls in the U.S rose by the most in eight months in October, data showed ahead of the government nonfarm payrolls data on Friday. U.S private employers added 227,000 jobs in October, above economists’ expectations of a gain of 189,000 jobs. Meanwhile the yield on the benchmark United States 10-Year rose to a 1-week high of 3.149%. Euro-area inflation accelerated in October and underlying price pressures increased, complicating policy makers’ choices after the economy grew at its weakest pace since 2014. Consumer prices jumped 2.2 percent from a year earlier while a measure that strips out volatile components rose to 1.1 percent. Inflation has been stronger than the European Central Bank’s goal of just below 2 percent for the past five months, although energy has contributed a significant part to the pickup. President Mario Draghi has expressed confidence that a robust labor market and growing wages will also lift core prices, justifying a gradual withdrawal of monetary stimulus. The pound surged after a letter by U.K Brexit Secretary Dominic Raab spurred optimism that a divorce deal with the EU is in sight. Sterling strengthened against all of its major peers after Parliament released the Oct. 24 correspondence, in which Raab says he is happy to update lawmakers on the negotiations when a deal is finalized, and he currently expects Nov. 21 “to be suitable.” The pound trimmed its advance after a U.K government spokesman said he would not get involved in “interpretation” of the letter. The pound gained almost 1 percent to touch $1.2831 before paring its advance.|
|01:45||Caixin China PMI Mfg (OCT)||Medium||50||50|
|07:00||U.K Nationwide House Px n.s.a. (YoY) (OCT)||Medium||1.9%||2.0%|
|08:15||Switzerland Consumer Price Index (YoY) (OCT)||Medium||1.0%||1.0%|
|08:30||Switzerland PMI Manufacturing (OCT)||Medium||58.7||59.7|
|09:30||Markit UK PMI Manufacturing s.a. (OCT)||Medium||53||53.8|
|11:30||U.S Challenger Job Cuts (YoY) (OCT)||Low||70.9%|
|12:00||Bank of England Bank Rate (NOV 1)||High||0.75%||0.75%|
|12:00||BOE Asset Purchase Target (NOV)||High||435b||435b|
|12:00||Bank of England Inflation Report||High|
|12:30||BOE’s Carney speaks at press conference in London||High|
|12:30||U.S Initial Jobless Claims (OCT 27)||Medium||212k||215k|
|12:30||U.S Continuing Claims (OCT 2)||Medium||1639k||1636k|
|13:30||RBC Canadian Manufacturing PMI (OCT)||High||54.8|
|14:00||U.S ISM Manufacturing (OCT)||High||59||59.8|
|14:00||U.S ISM Employment (OCT)||High||58.8|
The single currency is close to the lows of the year, largely as a result of widespread dollar strength. Euro-area inflation accelerated in October and underlying price pressures increased, complicating policy makers’ choices after the economy grew at its weakest pace since 2014. Consumer prices jumped 2.2 percent from a year earlier. Overall, the USD/JPY traded with a low of 1.1300 and a high of 1.1358 before closing the day around 1.1311 in the New York session.
The Japanese Yen pair hit its highest level since October 9 earlier yesterday before turning lower for the session on profit-taking following a strong three day rally. The rally was fueled by increased demand for higher risk assets and solid U.S economic data. The selling was likely related to profit-taking and position squaring ahead of U.S Non-Farm Payrolls report. Overall, the USD/JPY traded with a low of 112.78 and a high of 113.36 before closing the day around 112.92 in the U.S session.
The British Pound surged and gilts declined after a letter by U.K Brexit Secretary spurred optimism that a divorce deal with the EU is in sight. Sterling strengthened after Parliament released the Oct. 24 correspondence. The pound trimmed its advance after a U.K government spokesman said he would not get involved in “interpretation” of the letter. Overall, the GBP/USD traded with a low of 1.2689 and a high of 1.2828 before closing the day at 1.2764 in the New York session.
The Canadian Dollar edged lower against its U.S counterpart yesterday as the greenback broadly climbed, offsetting data that showed a surprise strengthening of the domestic economy in August. The Canadian economy grew by 0.1 percent in August from July on gains in the oil and gas extraction sector, as well as finance and insurance. Overall, USD/CAD traded with a low of 1.3104 and a high of 1.3167 before closing the day at 1.3154 in the New York session.
The Australian Dollar fell after an eighth consecutive inflation disappointment vindicated the market for its pessimism about the outlook for interest rates down under, and as data suggested the Chinese economy is beginning to creak under the pressure of U.S. tariffs. Australian inflation rose at an annualized rate of 1.9% during the third-quarter. Overall, AUD/USD traded with a low of 0.7066 and a high of 0.7105 before closing the day at 0.7071 in the New York session.
EUR/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The Relative Strength Index is above 38 and lies below the neutral zone. In general, the pair has lost 0.44%.
Currently, GBP/JPY is trading below 14 and above 50, 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 39 reading and lies below the neutral zone. On the whole, the pair has gained 0.30%.
Currently, the cross is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is indicating a bearish stance. The Relative Strength Index is above 47 reading and lies below the neutral region. In general, the pair has lost 0.62%.
This cross is currently trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 51 and lies above the neutral region. On the whole, the pair has lost 0.74%.
This cross is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The Relative Strength Index is above 50 and lies above the neutral region. In general, the pair has gained 0.79%.
|FOREX Closing Prices for October 31, 2018|
|Daily Pivot Points|
Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)
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