Monday 26th October: European Open Briefing

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Monday 26th October: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei up 0.70 %, Shanghai Composite and ASX both gained 0.25 %, Hang Seng rose 0.05 %
  • Commodities: Gold at $1164.10 (+0.10 %), Silver at $15.81 (-0.10 %), WTI Oil at $44.74 (+0.30 %), Brent Oil at $48.10 (unchanged)
  • Rates: US 10 year yield at 2.08, UK 10 year yield at 1.87, German 10 year yield at 0.52

News & Data:

  • PBoC Fixes Yuan Reference Rate At 6.3549 (prev 6.3595)
  • PBoC: Rate & RRR Decision Is Very Different From QE, Normal Policy Move
  • PBoC: RRR Cuts Aim To Meet Regular Liquidity Demand — BBG
  • PBoC: Has Room To Use Rate Tool To Strengthen Monetary Support — BBG
  • PBOC: Uncertainty Exists In Future Yuan Position Change – BBG
  • SNB Zurbruegg: Will Assess Effects of ECB Policy — BBG

CFTC Positioning Data:

  • EUR short 63K vs. 81K short prior week
  • GBP long 7.5 K vs. 8K short prior week
  • JPY short 4K vs. 14K short prior week
  • CAD short 27K vs. 34K short prior week
  • CHF short 1K vs. 2K short prior week
  • AUD short 38K vs. 34K short prior week
  • NZD long 4K vs 1K long prior week

Markets Update:

The start into the new trading week has been rather quiet, with no major data releases in the Asian session. Asian equity markets are mostly higher on the day, while the US Dollar weakened. EUR/USD broke briefly below 1.10, but managed to bounce from there and climbed to 1.1040 overnight. Similar price action in GBP/USD, which found support pre-1.53 and rose to 1.5340. Meanwhile, USD/JPY has been under pressure despite the gains in the Nikkei index. It started the new trading day around 121.50 and fell to 121.05 after the Tokyo open. The Aussie and Kiwi Dollar remain resilient. AUD/USD found good support around 0.72 and rallied to 0.7260 overnight, while NZD/USD rallied from 0.6740 to 0.6790.

Upcoming Events:

  • 09:00 GMT – German IFO Business Climate
  • 14:00 GMT – US New Home Sales
  • 21:45 GMT – New Zealand Trade Balance

The Week Ahead (Key Data/Events):

Tuesday, October 27th

  • 09:30 GMT – UK GDP
  • 12:30 GMT – US Durable Goods Orders
  • 13:45 GMT – US Services PMI
  • 14:00 GMT – US CB Consumer Confidence
  • 14:00 GMT – US Richmond Manufacturing Index

Wednesday, October 28th

  • 00:30 GMT – Australian CPI
  • 07:00 GMT – German GfK Consumer Climate
  • 12:30 GMT – US Trade Balance
  • 18:00 GMT – Fed Rate Decision
  • 18:00 GMT – FOMC Statement
  • 20:00 GMT – RBNZ Rate Decision
  • 20:00 GMT – RBNZ Statement

Thursday, October 29th

  • 00:00 GMT – Australia HIA New Home Sales
  • 08:55 GMT – German Unemployment Rate
  • 12:30 GMT – US GDP
  • 12:30 GMT – US Initial Jobless Claims
  • 13:00 GMT – German CPI
  • 14:00 GMT – US Pending Home Sales
  • 23:30 GMT – Japanese CPI
  • 23:30 GMT – Japanese Unemployment Rate

Friday, October 30th

  • 00:30 GMT – Australian PPI
  • 06:30 GMT – Bank of Japan Press Conference
  • 10:00 GMT – Italian CPI
  • 12:30 GMT – Canadian GDP
  • 12:30 GMT – US Chicago PMI
  • 14:00 GMT – US Michigan Consumer Sentiment

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