Technical Levels 2 November, 2017

Australia's Trade Surplus Surged To Its Highest Level In Four Months In September, Building Approvals Gained (02-Nov-2017    at   11:26:19 am)

The pair is expected to find support at 0.7679, and a fall through could take it to the next support level of 0.7634. The pair is expected to find its first resistance at 0.7748, and a rise through could take it to the next resistance level of 0.7772.

Euro Trading On A Stronger Footing This Morning (02-Nov-2017    at   11:25:03 am)

The pair is expected to find support at 1.1618, and a fall through could take it to the next support level of 1.1579. The pair is expected to find its first resistance at 1.1684, and a rise through could take it to the next resistance level of 1.1711.

Pound Trading Higher Ahead Of BoE's Monetary Policy Meeting (02-Nov-2017    at   11:23:59 am)

The pair is expected to find support at 1.3244, and a fall through could take it to the next support level of 1.3202. The pair is expected to find its first resistance at 1.3324, and a rise through could take it to the next resistance level of 1.3362.

Canada's Manufacturing Sector Activity Slowed In October (02-Nov-2017    at   11:22:42 am)

The pair is expected to find support at 1.2807, and a fall through could take it to the next support level of 1.278. The pair is expected to find its first resistance at 1.2885, and a rise through could take it to the next resistance level of 1.2936.

Switzerland's Manufacturing PMI Surprisingly Rose In October (02-Nov-2017    at   11:21:47 am)

The pair is expected to find support at 0.9967, and a fall through could take it to the next support level of 0.9943. The pair is expected to find its first resistance at 1.0027, and a rise through could take it to the next resistance level of 1.0063.

Japan's Consumer Confidence Climbed In October (02-Nov-2017    at   11:20:53 am)

The pair is expected to find support at 113.65, and a fall through could take it to the next support level of 113.42. The pair is expected to find its first resistance at 114.2, and a rise through could take it to the next resistance level of 114.52.

Market Update - Asian Session: Equities Decline As Tech Names In The US Fall After Reporting (02-Nov-2017    at   10:24:48 am)

During yesterday's NY session, equities ended mixed amid the release of the US Fed statement. In Asia, Nasdaq Futures have declined by over 0.2%. Shares of tech firms Facebook, Symantec and Tesla declined in the US afterhours, following their most recent earnings reports.

Crude Oil Remains Bullish…But For How Long? (02-Nov-2017    at   08:04:39 am)

The past few weeks have seen crude oil prices surging as plenty of rhetoric, along with some fundamental bumps, have buoyed the commodity. Subsequently, both WTI and Brent prices have reached levels not seen since the latter part of 2016. In particular, the price of Brent has risen above the mythical $60.00 handle and looks to be gaining steam for additional gains in the coming days. However, it remains to be seen if prices can retain their buoyancy above what some in the market consider being an advantageous level for shale production stand ups.

USD/CAD Canadian Dollar Higher After Fed Holds Rates As Expected (02-Nov-2017    at   07:41:43 am)

The Canadian dollar gained on Wednesday after the U.S. Federal Reserve ended its two day Federal Open Market Committee (FOMC) meeting and left the benchmark borrowing rate untouched at 100–125 basis points. The move was expected by the market with investors looking ahead to the December meeting for a third rate hike in 2017.

FOMC Review: Overshadowed by Fed Chair Announcement Tomorrow (02-Nov-2017    at   06:57:43 am)

The meeting is overshadowed by the fact that President Trump is likely to announce the next Fed chair tomorrow "afternoon" (US time, so likely tomorrow night CET). It remains our base case that current Fed governor Powell is going to succeed Yellen. Powell is a 'status quo' candidate in the sense that he is considered to be a centrist like Yellen and he will most likely continue the current monetary policy strategy of gradual Fed hikes. Still, we could see a slightly dovish reaction to a Powell nomination, as we cannot rule out that Trump is going to nominate John Taylor instead, who has said he thinks US monetary policy is too easy at the moment.

Few Changes from the Fed as December Hike Appears on Track (02-Nov-2017    at   06:52:41 am)

The Fed once again showed no inclination to change monetary policy at a non-press-conference meeting, holding the fed funds rate in a 1.00-1.25% range as expected. The updated policy statement was plain vanilla with a nod to some transitory hurricane effects - higher inflation and lower employment - and a decent Q3 growth outturn despite weather-related disruptions. The usual themes of a strong labour market and soft inflation were unchanged, with the latter still expected to hit the Fed's 2% objective over the medium term.

Fed Holds the Line on Rates in November (02-Nov-2017    at   06:51:19 am)

There is very little to comment on in this statement. As broadly expected, the Fed held the line on rates and noted, once again, the dilemma between a strengthening economy and stubbornly weak inflation. The inflation outlook will be central to the conduct of monetary policy over the next year. As some of the idiosyncratic factors weighing on price growth diminish, and the unemployment rate continues to push further below its natural rate, inflation is likely to gain traction in the year ahead. The Fed should see enough evidence for this proposition when it meets next in December, allowing them to raise rates by 25 basis points.

Gold Steady Despite Record High Stocks and Firm Dollar (02-Nov-2017    at   06:48:44 am)

I was struggling to make sense of gold's price action earlier this morning and as we approach the day's close I am still not sure what to make of it. Why write on gold if I am not clear about its direction, you may wonder. Well, it is often when things don't make sense when big things tend to happen.

Market Morning Briefing: Gold Has Started To Rise From Lower Levels Of 1263 (02-Nov-2017    at   08:51:15 am)

Gold (1279.52) has started to rise from lower levels of 1263 and could possibly test 1285-1290 on the upside in the next 2-sessions. A rise towards 1300 looks likely and could be boosted by a weaker or a stable Dollar Index in the near term.

Fed Waits, BOE Next (02-Nov-2017    at   06:45:56 am)

The Fed touted better growth but the FOMC statement reiterated concerns about low inflation. The New Zealand dollar was the top performer after solid jobs figures, while the Swiss franc lagged. Australian trade balance is due next followed the BoE decision on Thursday. 2 GBP and 1 FTSE trades are in progress.

Few Surprises from the FOMC (02-Nov-2017    at   06:42:42 am)

No surprises overnight as the FOMC did little more than confirm what we already knew; the economy is robust, but inflation is missing in action. And while the FOMC was on everyone's radar, to be frank, other than tax reform uncertainty inspired position covering and sporadic bouts of profit taking the FX markets remain stuck in the muck, but that's about to change.