Major Economic Data to keep an eye on:
Make sure to keep track of economic news related to your open positions.
GBP – Average Earnings – 9:30 GMT
GBP – Claimant Count Change – 9:30 GMT
EUR – Core CPI (MoM+YoY) – 10:00 GMT
EUR – Trade Balance – 10:00 GMT
ZAR – South African Retail Sales (YoY) – 12:00 GMT
CAD – Manufacturing Sales (MoM) – 13:30 GMT
USD – Beige Book – 19:00 GMT
USD – FOMC Member Fisher Speaks – 23:45 GMT
We know it sounds like a broken record, but again, all eyes are on Washington, and every word or meeting, or rumor are shaking the markets this way or another. All we have to do at this juncture is just to wait patiently to a resolution.
The SP 500 settled lower by 0.7% after contradicting headlines from Washington fostered volatile price action throughout the session. Trading volume was below average, shows low interest from investors to take side as this government shutdown continues. As a result of today’s decline, the SP 500 trimmed its year-to-date gain to 19.1%.
Asian stocks are mixed as U.S. default fears escalate, Japan’s Nikkei 225 rose 0.5%, and with inverse correlation to the USD/JPY, the pair rose as traders not decisive enough regarding the yen as a safe haven play.
USD/JPY rose to 98.58 before pulling back a bit in recent trade. support can be found at 96.57, October 7th low and resistance at 98.72, October 1st high.
The U.S. dollar in general is finding strength vs. its major rivals, the yen, euro and the Pound even after Fitch Ratings put U.S. Treasury bonds on Rating Watch Negative.
Australian SP/ASK 200 index was steady. Hopes continued to build on Tuesday that U.S. lawmakers and the White House are closer to agreeing on a spending packaged needed to reopen the government and avoid a default.
Oil futures traded mostly higher during Wednesday’s Asian. The commodity rose 0.6% to $101.25 per barrel, but now it seems to find support at 101.06, resistance is right at Monday’s high around 102.55
Natural gas futures gained in New York for the fourth time in five days.
The Canadian dollar fell from its highest level in a week as rifts emerged between U.S. politicians seeking to end a government shutdown and stave off potential default in Canada’s biggest trading partner. The Canadian dollar fell 0.3% to 1.0383
Gold futures added 0.3% to $1281.00 per troy ounce, after yet another night of government wrangling failed to deliver a deal to end the shutdown.
“The markets are still unsure if there is an actual movement forward or backward (on the shutdown),” a CME Group analyst wrote. “However, if it appears that the U.S. is likely to encounter a default, gold prices might return to a safe-haven status.”.
