Silver (XAG/USD) extends its record-breaking advance on Wednesday, trading near $52.60 and up over 2.50% on the day after erasing the previous day’s losses.
As has been the case since August, the market no longer expects the BoE to cut rates at the November policy meeting. Currently market implied policy rates suggest that 2 bps of easing is expected on a 1-month view and 12 bps in 3 months, Rabobank's FX analyst Jane Foley reports.
US Dollar (USD) is likely to trade in a range between 7.1300 and 7.1450. In the longer run, USD is expected to trade in a range between 7.1200 and 7.1550, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
US Dollar (USD) may edge lower and test 151.20; a continued decline below this level is unlikely. In the longer run, the current price movements are likely the early stages of a 149.50/153.00 range-trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The British Pound is posting moderate gains on Wednesday, as a mild appetite for risk and ongoing political uncertainty in Japan weigh on the Japanese Yen. The Pair has returned beyond the 202.00 level, after bouncing from 201.35 lows on Tuesday.
New Zealand Dollar (NZD) is likely to range-trade between 0.5690 and 0.5730. In the longer run, there is a chance for NZD to test 0.5660 before the risk of a stronger recovery increases, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Australian Dollar (AUD) is likely to range-trade between 0.6460 and 0.6520. In the longer run, further declines in AUD still appear likely; the next level to watch is 0.6440, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
The Nasdaq recovered most of the losses from Friday's selloff as the market continues to bet on more de-escalation ahead of the November 1 deadline. What's next?
The Pound Sterling (GBP) underperformance yesterday was contained mostly to against the core G10 currencies with the risk-off sentiment resulting in the high-beta G10 currencies like NOK and AUD performing worse.
Pound Sterling (GBP) is likely to trade in a range between 1.3290 and 1.3365. In the longer run, downward momentum has slowed somewhat, but there is still a chance for GBP to decline to 1.3200, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Euro (EUR) could rise, but any advance is likely part of a higher range of 1.1575/1.1635. In the longer run, the likelihood of EUR reaching 1.1490 during this phase of weakness is decreasing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/JPY extended its move lower as Japanese political developments continued to unravel. JPY fell 4% at one-point post-LDP election. Pair was last at 151.22 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Australia releases September jobs data overnight, with consensus expecting a 20k rise in employment after August’s 5k drop, ING's FX analyst Francesco Pesole notes.
USD/CNY gapped lower in the open this morning, guided by lower USD/CNY fix at 7.0995 (vs. 7.1021 yesterday). It appears that 7.10 is no longer the line in the sand. USD/CNY last seen at 7.1245, OCBC's FX analysts Frances Cheung and Christopher Wong note.
USD/MXN has rebounded from its 18.20 low but continues to face resistance at the 50-DMA. A break above 18.65 is needed to confirm an extended recovery, while failure to clear it could invite renewed downside pressure, Société Générale's FX analysts note.
Euro (EUR) was a touch firmer overnight as political uncertainties in France found a breather. EUR last seen at 1.1637 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
EUR/JPY depreciates after registering little gains in the previous session, hovering around 176.00 during the European trading hours on Wednesday. The technical analysis of the daily chart indicates a bullish revival as the currency cross remains within the ascending channel pattern.
Silver price (XAG/USD) trades around $52.30 per troy ounce during the Asian hours on Wednesday after recovering losses registered in the previous session.
The EUR/CAD cross is seen building on its recent bounce from the 1.6170-1.6175 area, or a three-week low touched last Friday, and gaining traction for the second straight day.
The AUD/JPY cross holds steady near 98.50 during the early European trading hours on Wednesday. Renewed trade tensions between the US and China, and persistent geopolitical tension might underpin safe-haven currencies like the Japanese Yen (JPY) and cap the upside for the cross.
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