A quiet session with little headline and volatility. Japan CPI for October came in at 0.1% y/y vs expected 0.5%, National CPI excluding Fresh Food 0.1% y/y, expected 0.1%, prior was 0.1%, National CPI excluding Food, Energy -0.7% y/y, expected -0.6%, prior was -0.5%. The extra 79tln Yen stimulus package also do not move the market.
USD was slightly bid as Euro resumes the fall after yesterday's gain. The largest range of the session are EUR/USD and AUD/NZD. EUR/USD fell from 1.1372 to 1.1352, currently trading at session low. AUD/NZD rose from 1.0316 to 1.0343, currently trading at 1.0338. Other majors are currently trading within 0.1% from session open.
The US session saw EUR/USD extending its correction, rising back to 1.1370. The USD saw some gains elsewhere early in the session, USD/JPY to near 114.50, while USD/CAD hit a high of 1.2647 after opening around 1.2600, though these USD gains were largely erased. Similarly GBP/USD erased a dip to 1.3465, recovering to near 1.35, and AUD/USD recovered from a low of .7250 while remaining below .73. EUR/GBP rose to .8425, EUR/SEK extended gains to near 10.10 but EUR/CHF saw only marginal gains.
The Philadelphia Fed survey was the main data of interest, showing another strong reading on the current manufacturing index, but still showing weakness in the future index. The Canadian ADP employment number showed a 65.8k rise in October, up from 41k in September.
New York Federal Reserve Bank President John Williams said inflation in the US is becoming broader based and expectations for future price increases are rising. He said a rise in short-run and long-run inflation expectations are a positive development, but officials would not want long-run inflation expectations to move up significantly more. Later in the session even the dovish Evans recognised that rate hikes in 2022 might be needed.
00:01 GMT - UK: GfK Consumer Confidence (Nov) (Mkt: -18 Prev: -17)
06:30 GMT - FR: ILO Unemployment Rate (3Q) (Mkt: 7.9% Prev: 8%)
07:00 GMT - DE: PPI MoM (Oct) (Mkt: 1.9% Prev: 2.3%)
07:00 GMT - DE: PPI YoY (Oct) (Mkt: 16.2% Prev: 14.2%)
07:00 GMT - UK: Retail Sales (ex Auto Fuel) YoY (Oct) (Mkt: -2.8% Prev: -2.6%)
07:00 GMT - UK: Retail Sales (Inc Auto Fuel) MoM (Oct) (Mkt: 0.5% Prev: -0.2%)
07:00 GMT - UK: Retail Sales (Inc Auto Fuel) YoY (Oct) (Mkt: -1.9% Prev: -1.3%)
07:00 GMT - UK: Public Borrowing (PSNB ex banks) (Oct) (Mkt: 14Bn Prev: 21.8Bn)
07:00 GMT - UK: Retail Sales (ex Auto Fuel) MoM (Oct) (Mkt: 0.6% Prev: -0.6%)
07:00 GMT - UK: Public Sector Net Borrowing (Oct) (Mkt: 12.4Bn Prev: 21Bn)
07:00 GMT - NO: GDP (Sep) (Mkt: 0.4% Prev: 1.1%)
09:00 GMT - EU: Current Account (SA) (Sep) (Prev: 13.4Bn)
09:00 GMT - IT: Industrial Sales YoY (Sep) (Prev: 13.8%)
09:00 GMT - IT: Industrial Sales MoM (Sep) (Prev: 0.8%)
09:30 GMT - IT: Current Account (Sep) (Prev: 5031Mn)
13:30 GMT - CA: Retail Sales (Sep) (Mkt: -1.7% Prev: 2.1%)
13:30 GMT - CA: Retail Sales (ex Auto) (Sep) (Mkt: -1% Prev: 2.8%)