Daily Briefing
Currencies
- EUR/USD: Is down slightly for the session, coming off the gains made after yesterday’s disappointing US Durable Goods Data. The Single currency is trading at 1.2727, with many expecting a continuation of easy language from the Fed later today (18:00 GMT), following the recent rebound in US equities. The next levels of resistance for the Euro are at 1.2785 and 1.2815, with a support at 1.2705.
- USD/JPY: The Dollar is holding the 108.00 handle in advance of the Fed Statement, down just 0.1% for the session. The Dollar is pulling back on its Support level at 107.90, with resistances at 108.35 & 108.55.
- GBP/USD: Cable is steady for in the first few hours of the European session, holding onto some of yesterday’s gains. The pair is trading at 1.612, pulling back toward the Support at 1.6105. If the Fed’s statement is as dovish as expected , the next resistances are at 1.6155 and 1.6185.
Indices
- Europe: European stock markets opened with sharp gains as some leading indicators climb ahead of the US rate decision later this evening. DAX 30 and OMX futures adding as much as 0.5% while the CAC 40 is trading lower, following data showing a decline in consumer confidence in French.
- US: Wall-Street closed in positive territory on Tuesday, as investor await the Fed announcement this evening. The Dow Jones rose by 1.1%, S&P 500 added 1.2% and the NASDAQ climbed 1.8%. NASDAQ futures are losing some ground this morning after Facebook shares fall after the earning release yesterday.
- Asia: Asian Markets gained on the back of positive momentum on Wall-Street last night. Nikkei 225 futures are up 1.3% while and Hang Seng futures rise as much as 0.9% on the session. Japan’s industrial output rose 2.7% in September, versus expectations for 2.2% and a decrease of 1.9% in August.
TOP News
- Fed FOMC statement and Federal Funds Rate are expected today @ 18:00 GMT. No change is expected in the Funds rate but Investors will search the FOMC statement for any clues as to when the Fed will begin to lifts rates. Some market participants are pricing in a lift as early as mid-2015.
- We’re in the middle of Earnings Season and last night’s earnings report by Facebook Inc (NASDAQ:FB) underwhelmed some investors even though the earnings report rose sharply. The social media giant reported increased sales of almost $400 million, or 17 cents a share from a year ago. Sales rose almost 60% to $3.2 billion while monthly active users increased to 1.35 billion. The biggest number reported by the company was the 864 million daily active users which does support analyst’s call that the share price can only go higher.
Things to Remember
- If you have a plan, stick to it. Place Limits / Take Profits where you intend to exit the Market.
Market Sentiment
- Gold: The precious metal jumped to $1235 yesterday after Core Durable Goods figures failed to impress, coming in at -0.2% versus the expectation of +0.5%. Adding these poor figures to some of the others we’ve seen this month, for instance Retail Sales, could easily be used for the argument that the economy is not as strong as the Fed believe it to be.
- Crude Oil: After hitting a 2 year low @ $79.44 on Tuesday Oil has rebounded well and is trading at the time of writing just under $82. Crude closed yesterday above $81.40 and has held above that level since. Later today we have the weekly inventory figures; the forecast is for 3.3 million barrels.
- CVIX: The Volatility index was down a further -10.3% yesterday @ 14.39.
NEWS – Wednesday 29/10/2104
14:30 GMT - USD – Crude Oil Inventories
18:00 GMT - USD – FOMC Statement
18:00 GMT - USD – Federal Funds Rate
20:00 GMT - NZD – Official Cash Rate
20:00 GMT - NZD – RBNZ Rate Statement
20:15 GMT - CAD – BOC Gov Poloz Speaks
Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.