Free Trial

Equities Extend Slide, Fuelling Fearsome USD Rally

FOREX

Markets sought havens throughout the Wednesday session as equities slipped further. European equities shed a further 3% or so. with US stocks following suit. With stocks falling sharply, JPY and USD rose against all others in G10, boosting the USD index to the best levels in two weeks and back above the 50-dma.

GBP saw a little reprieve ahead of the London close as Bloomberg reported that a Brexit deal could be in the offing in early November as good progress has been made between negotiating teams this week.

Commodity markets were similarly roiled by the threat of further lockdowns across continental Europe, leading WTI and Brent crude futures to shed over 5% and anchor the likes of NOK & CAD.

Thursday brings weekly US jobless claims and advance Q3 GDP, regional German CPIs and pending home sales. Rate decisions from the ECB and BoJ are due. Neither bank are expected to make any material change to policy, although pressure is clearly ratcheting higher on both bank's committees as their inflation outlooks continue to deteriorate.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.