NEWS / Foreign Exchange

EURUSD On Pace Towards 1.50?

Overnight News Bullets

• E-Z PPI MoM/YoY (Sep), out at 0.4%/2.7% vs. 0.3%/2.6% exp. 0.1%/1.7% prior.

• E-Z Retail Sales MoM/YoY (Sep), out at 0.3%/1.6% vs. 0.6%/2.2% exp. 0.1%/1.0% prior.

• GE Factory Orders MoM/YoY (Sep), out at -2.5%/1.1% vs. -0.3%/6.2% exp. 1.2%/4.0% prior.

• CA Building Permits MoM (Sep), out at -1.7% vs. 1.8% exp. 1.4% prior.

• CA Ivey Purchasing Managers Index (Oct), out at 57.1 vs. 55.0 exp. 56.0 prior.

• US ABC Consumer Confidence (Nov 4), out at -15 vs. -14 exp. -15 prior.

• AU RBA Cash Target (Nov) 25 Bps Hike from 6.50% to 6.75% as expected.

• AU AiG Perf of Construction Index (Oct), out at 57.4 vs. 55.2 prior.

• JN Official Reserve Assets (Oct), out at $954.5B vs. $945.6B prior.

• AU Home Loans (Sep), out at -2.4% vs. 0.1% exp. 1.6% prior.

• AU Investment Lending (Sep), out at -3.3% vs. -4.5% prior.

• AU House Price Index QoQ/YoY (3Q), out at 3.5%/10.6% vs. 3.0%/9.8% exp. 3.2%/9.2% prior.

• AU Foreign Reserves (Oct) out at A$36.0B vs. A$52.7B prior.

Markets

• FX: Dollar weakness continues with EURUSD now over 1.46 and USDCAD pushing for 0.90.

• Fixed Income: US Treasuries higher. JGBs advanced further on local equity losses. European bonds little changed.

• Stocks: Both American and Asian stocks rally with rising commodity prices. S&P500 up 1.2%, Dow Jones up 0.87%. Nikkei slightly lower.

• Commodities: Oil and commodities continue to surge, with spot gold briefly over $836 an ounce, silver spot prices touching a high of $15.9050. December crude trading around $98 a barrel.

O/N Data Heat map:

Calendar

Today's Highlights:

This and Next Week???‚¬?„?s Highlights:

What's going on?

• Dollar weakness was further propelled as Chinese official said the government would favor stronger currencies in its future diversification of $1.43T of FX reserves.

• Rally in crude oil prices gained further momentum with dollar tumbling and a storm in the North Sea disrupting output. December contract has touched a high of $98.03 barrel on Wednesday morning trading.

• Concerns of accelerating inflation pushed the gold to 27-yr high with spot prices now pushing towards $840 an ounce.

• Boosted by high oil and commodities prices, Asian stocks continued yesterday???‚¬?„?s rally. Miners and energy companied led the gains.

• US stocks rose the most in 4-days similarly helped by energy prices. S&P 500 Energy Index climbed nearly 3%, representing steepest gain among 10 industries.

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