Market Daily Review Nov.10

Market Movers of the Day

Asia-Pacific

ANZ Job advertisement at -1.7%

Australian Home loans rise 5.1% in September

Australian investment lending fall -0.1%

Japanese Trade balance strong at ¥599.2B

Japanese Adjusted current account at ¥1338B

Japanese M2 money supply rising 3.3% at October

Europe

German Industrial production better than expected rising 2.7% MoM

German Trade balance slightly disappointing at 10.6B

EU Sentix indicator confidence falling -7.0

Americas

Canadian Housing starts rise 157.3K YoY better than expected

 

The Overall Sentiment

Forex

Green was the ruling color in markets as risk appetite returned aggressively fueled by the statements echoing from the G-20 that all members will keep stimulus in the Economy to keep supporting growth. Most high yielding currencies gained strongly with the Aussie trading at 83.8Â¥ against the Yen and the Kiwi hovering slightly under 75 cents. Unlike the broad sentiment the Greenback was on the red as expected, the Euro hiked once again to the 1.5$ mark and the Sterling advanced to the 1.68 zone.

 

Equities

With the possibility stimulus is here to stay for a while bets on bottom line growth were on, with almost all major benchmark indexes in the money. In the US the Dow was up by 2% and the S&P advanced by 2.22%. Among the out standers were Las Vegas Sands the casino giant which gained 9.4% in trading amid improved funding outlook and Bank of America which was higher by 4.8%.Gold miners also drew attention as the record in Gold prices is expected to improved margins for the industry. In Europe the FTSE was higher by 1.8% and the DAX gained strongly with 2.4% advance, supported by the overall positive sentiment but also from German industrial production which continues to rebound, rising 2.7% MoM.

 

 

 

Commodities

Gold surpasses the 1100 mark trading at a record high; this was the dominant headline not only for the metal space but for the entire commodity arena, as gold continues to glitter against other commodities. The Dollar weakness alongside a brighter outlook on growth especially in Asia has helped the Yellow metal to surge above its record high once again. After peaking around 1107$ gold settled lower but held well above the 1100 milestone. Silver continued to lag behind trading around 17.7$ still under the 18$ and oil topped around 80.3$ a barrel before sliding lower to the 78 zone.

 

 

 The Day Ahead

Strong gains from the Day before could provide a good reason for profit taking in some risk trades but not necessarily, the Sterling is expected to gather much attention with mixed data on the UK. The housing and retail sales indicators coming from the UK just this morning, surprised for the better with UK retail sales rising strongly and Housing prices also rising amid difficulties in home supply. On the other hand Fitch the credit rating company has stated in its press release the UK is at the highest risk of losing its AAA rating from all major economies. Market will have to decide how to digest the mixed news with the Sterling’s proximity to the 1.68 leaving higher risk to the downside. Other important economic indicators due are the CPI figure coming from Germany, the ZEW sentiment in Germany and the EU which will be closely watched and the ABC/Washington post consumer confidence reading which will gather much attention as all consumer related data gathers in the US.

 

Technical Analysis

GBP/USD

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Update: Downside risk for the pair has risen substantially in the last two days; although the pair could rally towards 1.71 the upside potential currently looks limited.

Bearish scenario- After failing to break the 1.68-1.69 zone the pair is expected to test the 1.625 Fibonacci support with a close under the major support pushing to a steeper price adjustment.

Target A- 1.575

Target B-1.53

Bullish Scenario- A close above of the 1.68-1.69 would push the pair to a test of the 1.7-1.71 resistance.

Target- 1.7

 

Support/Resistance

 

 

Daily Events

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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