FX News Today

The RBA left rates unchanged, which pushed the AUD up across the board, but that didn’t deter stock markets, which focused on the fact that the RBA still kept the door open for further easing.

The U.S. ISM slipped to a 50.1 low, the October ISM is at a new two year low of 50.1, with a drop in the employment gauge to a 47.6 six year low that reinforced the pattern of declining producer sentiment.

The U.S. construction spending report beat estimates, with a 0.6% September rise after boosts in the July and August levels, though the surprise included big boosts in the home improvement residual that doesn’t enter GDP calculations, and the remaining construction data signaled downside risk for the next Q3 GDP revision.

Canada RBC manufacturing PMI fell to 48.0, in October from 48.6 in September. The decline puts the index further below the previous multi-year low of 48.7 seen in February, leaving the weakest reading in this indicator’s short history going back to late 2010.

U.K. manufacturing PMI jumped to 55.5, in October from 51.8 in September. This was a much stronger than expected reading and in fact the highest since June last year.

Gold slipped to nearly one-month lows, now trading around $1,1137/ounce, after touching $1,132,66 overnight. The market continues to fret over last week’s FOMC statement, where fears of a December rate hike have weighed heavily on gold prices.

Crude oil prices declined from two week highs, following poor manufacturing PMI readings out of China, which suggest ongoing contraction in manufacturing activity in the world’s second largest oil consuming countries.

Main Macro Events Today

• AUD RBA Interest Rate Decision: RBA held rates steady at 2.00%, matching expectations. The statement was similar to last month, lacking clear guidance and sticking to a cautiously dovish tone that justifies prevailing policy settings while reminding that they have room to cut further if needed. They also maintained the shift to less-negative language about the Australian dollar (first seen in August) remarking that the currency was “adjusting to the significant declines in key commodity prices” versus the previous guidance that “further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.”

• GBP PMI Construction: The forecast calls for a 58.8 reading down from the last 59.9 number.

• ECB Presidents Draghi’s Speech: Eurozone markets will look for comments from ECB’s Draghi for a clarification of the policy stance after the president seemed to dampen easing hopes in comments from last weekend.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

FX News Today

The GBP is slightly higher, against the EUR and USD after a much stronger than expected U.K. Manufacturing PMI reading. The unexpected jump in the manufacturing PMI, which has lowered the chances that the BoE will remove its implicit tightening bias. Gains against EUR, JPY and USD are modest however.

Eurozone manufacturing PMI, All Eurozone PMI readings apart from Greece are above the 50 point no change mark and even in Greece, confidence is improving further. Still, while the numbers signal a slight uptick in manufacturing output at the start of the last quarter, growth in the manufacturing sector is hardly buoyant and the sector is feeling the strain from the slowdown in emerging market economies, most notably China.

Eurozone stock markets are higher, the FTSE 100 is underperforming and posting slight losses, despite much better than expected PMI readings.

Worries over China’s growth, the official manufacturing PMI held steady at 49.8 in October, disappointing expectations for a bounce back to the 50.0 expansion-contraction line. It’s a third straight sub-50 reading. The non-manufacturing index slipped to to 53.1 from 53.4, still reflecting expansion but is the slowest pace since December 2008.

Greek banks need EUR 14.4 bln recapitalization, the ECB said in its Asset Quality Review, published Saturday, that Greek banks need at least EUR 4.4 bln from shareholders and bondholders to meet the shortfall identified under the current baseline macroeconomic assumptions.

Turkish lira soars, with stocks on Erdogan election success. The currency jumped the most since 2008 according to Bloomberg calculations after Erdogan’s AK Party won the second election this year. This ends months of political deadlock and gave a boost to stocks, as well as bonds, with 10-year yields dropping to the lowest level in three months.

Main Macro Events Today

• GBP U.K. manufacturing PMI: Jumped to 55.5 in October from 51.8 in September. A much stronger than expected reading and in fact the highest since June last year. The new orders number jumped to 56.9 from 52.9 in the previous month and is at the highest level since July 2014. GBP is slightly higher against EUR and USD and the Gilt contract has extended losses on the strong number that will back the arguments to maintain the BoE’s tightening bias.

• EUR Markit Manufacturing PMI: EMU Oct manufacturing PMI revised up to 52.3 from 52.0 reported initially and versus 52.0 in the previous month. National readings had been mixed, but with Spanish and French numbers slightly lower than expected, while the Italian reading surged higher and the German PMI was revised up markedly with the final release.

• USD ISM Manufacturing PMI: The manufacturing index is estimated edging up to 50.5 from 50.2 in September, though that’s just barely in expansionary territory.

• CAD RBC Manufacturing PMI: If the results are in line with consensuses, especially on trade and employment, this would be supportive of the Bank of Canada’s constructive view on the growth and inflation outlook as detailed in the October Monetary Policy Report.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.