- FOMC minutes due this afternoon
- Traders focused on Nvidia earnings release after markets close
- US dollar opens mixed to higher
USDCAD open: 1.4003, overnight range 1.3983-1.4006, close 1.3990, WTI 60.15, Gold 4109.51
The Canadian dollar is trading off of US developments and traders are concerned with domestic issues, including data and the budget. The focus is on the tech stock correction and the upcoming earnings report from Nvidia.
The FOMC minutes from October 29 are due this afternoon after a slew of US economic data reports. The data should be taken with a grain of salt as it will have issues due the US government shutdown.
WTI oil is trading in a 59.45-60.78 band after the latest API report showed a 4.4 million barrel increase in US inventories last week.
Asian markets stayed soft but held up better than the previous session, with Japan’s Topix down 0.17%, Hong Kong’s Hang Seng off 0.38%, and Australia’s ASX 200 lower by 0.25%.
By 7:45 am, the German DAX has gained 0.19% while the CAC 40 and FTSE 100 are flat. S&P 500 futures added 0.39%. The U.S. Dollar Index was 99.71, and the 10-year yield sat at 4.11%.
EURUSD 1.1566-1.1597 traded quietly after Eurozone October inflation matched expectations, showing no signs of rising price pressure. Labour costs eased slightly, reinforcing the view that the ECB can keep policy steady.
GBPUSD 1.3101-1.3156 slipped after U.K. inflation for October rose 3.6% y/y, a touch above forecasts but still softer than September. Weaker-than-expected PPI reduced pressure on the Bank of England to tighten further, and traders remain cautious ahead of the November 28 Fall Budget.
USDJPY 155.22-156.20 churned in a volatile pattern, with the low registered early in Asia. Safe-haven yen demand tied to global equity weakness was balanced by expectations that Japan’s next rate hike may be delayed until spring and by talk of new fiscal measures. Ongoing China-Japan tensions, firm U.S. yields, and the threat of intervention helped keep the pair supported.
AUDUSD 0.6476-0.6512 traded defensively after Q3 wage growth landed at 0.8% q/q, exactly matching forecasts and the prior quarter. Soft global equity sentiment continued to weigh on commodity currencies, leaving the Australian dollar stuck on the back foot.
