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EQUITIES

Selling going through in Estoxx

SILVER TECHS

Bullish Focus

MARKET INSIGHT

What to watch

SPAIN DATA

Spanish Factory Gate Inflation Soars to 35.9%

GILTS

Opening calls

USD

USDNOK is up 0.49% in early trade

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  • Growth proxies and commodity-tied FX initially outperformed on Wednesday. However, as both equities and commodities reversed course throughout the US session, the US dollar/haven FX rallied and risk-tied currencies retraced lower.
  • The Japanese Yen topped the G10 leaderboard, rising 0.35% against the greenback with greater gains evident on the crosses. USDJPY short-term bearish technical threat remains in place. Tuesday's weakness saw prices test and show below key short-term support at 112.73, Nov 9 low before prices improved ahead of the close. A clear break would open 112.08 next, a recent breakout level.
  • One of the sharpest reversals was in USDCAD, bouncing just under 1% from lows of 1.2714 to around 1.2830. A strengthening of the current bullish theme signals scope for strength towards 1.2896 next, the Sep 20 high.
  • Despite the early dollar weakness, price action has been supportive throughout the latter half of the session with broad dollar indices trading on the front foot and into positive territory as of writing.
  • Back in the spotlight in emerging markets was the Turkish lira, which sharply rallied as the Turkish central bank intervened in the market. This comes following the Presidents unwavering rhetoric towards lowering interest rates. The Turkish monetary authority said that they intervened in markets by selling foreign currencies for the first time in seven years. After the colossal move from 13.88 down to 12.42, the pair consolidated within a 13.00-13.40 range for the rest of the session, currently down 1.8% on the day.
  • Australian retail sales and trade balance data due overnight before European unemployment figures. US unemployment claims also due with a number of potential Fed speakers listed as we approach the FOMC blackout. The markets focus will be on Friday‚Äôs release of US non-farm payrolls.