Market Brief

      Risk appetite came back in a big way during the Asian session, as events in the US session were supportive of long risk positions. The FOMC minutes really contained no surprises, but stayed dovish despite going divergence among members. The minutes also addressed the USD decline, which said that so far the deprecation had been orderly, which the market quickly read into as permission to continue to sell the USD. The economic data yesterday were mixed, with German IFO and US consumer confidence data surprising to the upside while GDP data basically printing inline with expectations. The rally in risk correlated trades saw Spot Gold rise to $1180.00, while EURUSD is now trading slightly above the 1.5000 handle. The GBPUSD jumped nearly a figure in late Asian trading to 1.6668 from 1.6580. Yet, GBPJPY gains were compressed, as JPY fueled carry trade felt the brunt of JPY buying. In Japan, exports grew in October for the third straight month thanks to robust shipments to Asia, illustrating that a sturdy recovery in the region will prop up Japans export-driven economy for the rest of this year. AUDUSD climbed to 0.9267, as construction work done data released this morning surprised the market to the upside rising by 2.2% q/q in Q3 (consensus 0.0%). This economic release helped confirm the RBA's bullish outlook for the economy, which was reiterated by RBA Deputy Governor Battellino this morning and supports our view that the central bank will raise the cash rate by 25bp in December.

For this light calendar, pre-Thanksgiving Day markets will be watching economic data from the US . Today in the US, October’s personal income and spending figures are expected to offer further clues that the pace at which real consumption grew in Q3 is not sustainable. And finally, the latest data core durable goods suggest that the growth rate of orders has already peaked and will falter in the near term.

G10 Advancers and Decliners vs USD

AUD

1.07

width=120

NZD

0.80

width=89.7196261682243

SEK

0.43

width=48.2242990654206

GBP

0.39

width=43.7383177570093

NOK

0.34

width=38.1308411214953

CHF

0.31

width=34.7663551401869

DKK

0.30

width=33.6448598130841

CAD

0.24

width=26.9158878504673

EUR

0.21

width=23.5514018691589

JPY

0.19

width=21.3084112149533

 Global Indexes

 Current Level

 % Change

Nikkei 225 Index

9,441.64

+ 0.42

Hang Seng Index

22,574.93

+ 0.68

Shanghai Index

3,290.17

+ 2.06

FTSE futures

5,328.50

- 0.42

DAX futures

5,822.00

+ 0.79

SMI Futures

6,443.00

+ 0.67

S&P future

1,107.20

+ 0.37

 World Markets

 Current Level

 % Change

Gold

1,178,47

+ 0.77

Silver

18.72

+ 1.10

VIX

20.47

- 3.26

Crude wti

76.39

+ 0.48

USD Index

74.92

- 0.22

 Todays Calender

 Estimates

 Previous

 Country / GMT

NBP Rate Announcement, % 26-Nov

3.50

3.50

PLN / --

Unemployment rate AKU, % Sep

--

3.2

NOK / 09.00

GDP - second estimate, % q/q (y/y) Q3

-0.3,-5.1

-0.4,-5.2P

GBP / 09.30

Durable goods orders, % m/m (y/y) Oct

0.5, -11.4

1.4,-19.3

USD / 13.30

Core capital goods orders, % m/m Oct

--

1.8,-16.9

USD / 13.30

Personal income, % m/m Oct

0.2 (-2.3)

0.0 (-2.8)

USD / 13.30

Personal spending, % m/m Oct

0.5 (1.0)

-0.5 (-0.3

USD / 13.30

PCE price index, % m/m (y/y) Oct

(0.1)

0.1 (-0.5)

USD / 13.30

Core PCE price index, % m/m (y/y) Oct

0.1 (1.3)

0.1 (1.3)

USD / 13.30

Initial jobless claims, thous (4wk ma) 21-Nov

500 (506)

505 (514)

USD / 13.30

U/M consumer sentiment index Nov f

67

66.0 p

USD / 13.30

New home sales, thous Oct

408

402

USD / 13.30

Currency Tech

AUDUSD
R 2: 0.9335
R 1: 0.9275
CURRENT: 0.9260
S 1: 0.9110
S 2: 0.9060

USDCAD
R 2: 1.0735
R 1: 1.0645
CURRENT: 1.0571
S 1: 1.0540
S 2: 1.0450

EURJPY
R 2: 134.45
R 1: 133.60
CURRENT: 132.47
S 1: 131.75
S 2: 131.00

USDMXN
R 2: 13.135
R 1: 13.025
CURRENT: 12.873
S 1: 12.855
S 2: 12.795