Thursday 12th November: European Open Briefing

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Thursday 12th November: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei up 0.02 %, Shanghai Composite fell 1.00 %, Hang Seng rose 0.90 %, ASX gained 0.45 %
  • Commodities: Gold at $1088 (+0.30 %), Silver at $14.34 (+0.55 %), WTI Oil at $43.15 (+0.55 %), Brent Oil at $46.95 (+0.60 %)
  • Rates: US 10 year yield at 2.33, UK 10 year yield at 2.05, German 10 year yield at 0.62

News & Data:

  • Australia Unemployment Rate (Oct): 5.9% (exp 6.2% prev 6.2%)
  • Australia Participation Rate (Oct): 65.0% (exp 64.9% prev 64.9%)
  • Australia Employment Change (Oct): 58.6K (exp 15.0K prev -5.1K)
  • New Zealand ANZ Consumer Confidence Index (Nov): 122.7 (prev 114.9)
  • Japan Machine Orders (MoM) Sep: 7.5% (exp 3.1% prev -5.7%)
  • Japan Machine Orders (YoY) Sep: -1.7% (exp -4.6% prev -3.5%)
  • Japan PPI (MoM) Oct: -0.6% (exp -0.4% prev rev -0.6%)
  • Japan PPI (YoY) Oct: -3.8% (exp -3.5% prev rev -4.0%)
  • Bank Of Korea Leaves Key Interest Rate Unchanged At 1.5% As Expected
  • BoK's Lee: New Inflation Target To Reflect Structural Changes, Disagree Zero Rate Policy Is Needed
  • PBoC Fixes Yuan Reference Rate At 6.3628 (prev 6.3614)
  • ECB’s Coeure: ECB Doesn't Have To Act In December — BBG
  • Coeure: ECB Will Act On Basis Of Economic Data
  • Coeure: ECB Will Continue Current Policy As Long As Needed

Markets Update:

The Aussie Dollar rallied in the Asian session after employment data came in a lot stronger than expected. The unemployment rate fell to 5.9 %, while the market was expecting that it will stay unchanged at 6.2 %. The employment change number arrived at +58.6k vs. +15k expected. AUD/USD jumped from 0.7060 to 0.7135 immediately after the release and eventually extended gains towards 0.7155. AUD/NZD rallied from 1.0760 to 1.0870 and eventually 1.0915.

The New Zealand Dollar did not benefit from this, as heavy AUD/NZD buying put pressure on the currency. NZD/USD fell from 0.6575 in the early Sydney session to a low of 0.6540 in Tokyo. The Canadian Dollar also remains relatively weak as oil prices fell to a fresh low in yesterday's NY session. USD/CAD briefly fell to 1.3225, but recovered to 1.3250 in Asia. Price action has been quiet this week, with the pair caught in a 80 pips range so far.

USD/JPY found again support at 122.75 and bounced back to 123.00. The pair remains well bid overall, but much will depend on US econ data today and tomorrow (initial jobless claims, retail sales).

Upcoming Events:

  • 07:00 GMT – German CPI
  • 10:00 GMT – Euro Zone Industrial Production
  • 13:30 GMT – US Initial Jobless Claims
  • 14:15 GMT – FOMC Member Bullard speaks
  • 15:00 GMT – US JOLTs Job Openings


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