3 Nov: Cable sharply lower after BOE rate hike. US employment data ahead. Australian R/S coming up.

By | November 3, 2017

 

Sterling is sharply lower on Friday after the BOE raised rates by 0.25%, but said that  it expected only “very gradual” further increases would be needed after this one, with possibly only two more 25bp hikes over the next three years. Cable is lower against all the other majors and had its biggest one-day drop against the Euro in over a year. In other headlines,  the  Republicans unveiled the tax cut bill, causing a minor dip in the dollar from which it quickly recovered, while Donald Trump has finally announced that Jerome Powell will be the next Federal Reserve Chairman, which was widely expected and has had little effect n the markets. Aside from Sterling, the other markets are little changed on Friday as we await the US jobs data, later in the session. In terms of data, the UK PMI construction rose to 50.8 in October, up from 48.1 and beat expectation of 48.5. German unemployment dropped -11k in October, larger than expectation of -10k, while the headline unemployment rate was unchanged at 5.6%. US initial jobless claims dropped -5k to 229k, below market expectation of 235k.

Friday will be pretty much devoid of economic data until the release of the US jobs data (exp 4.2%, NFP; 312k, AHE; 0.3%, AWH; 34.4), after which we will see the usual scramble into the weekend. Ahead of that, the Australian and Caixin China Services  PMIs will be released, as will the Australian Retail Sales (exp 0.+4%mm), where a decent bounce from last month’s awful figure (-0.6%) is expected. That aside, the UK Services PMI will be released and may add to the volatility in Cable. All up though, the attention will be on the NFP.

CURRENCIES
EURUSD: 1.1659
Res  1.1685  1.1700  1.1725
Sup  1.1625  1.1605  1.1575
USDJPY: 114.08
Res  114.25  114.45  114.90
Sup  113.95  113.70  113.50
GBPUSD: 1.3060
Res  1.3080  1.3105  1.3135
Sup  1.3025  1.2995  1.2960
USDCHF: 0.9992
Res  1.0040  1.0075  1.0100
Sup  0.9970  0.9945  0.9920
AUDUSD: 0.7715
Res  0.7730  0.7750  0.7770
Sup  0.7700  0.7675  0.7650
NZDUSD: 0.6912
Res  0.6940  0.6960  0.6985
Sup  0.6880  0.6860  0.6820
INDICES / COMMODITIES
S&P: 2577
Res  2585  2590  2600
Sup  2565  2560  2555
DJI: 23456
Res  23470  23540  23650
Sup  23275  23195  23140
ASX SPI: 5940
Res  5950  5975  6000
Sup  5915  5900  5880
XAUUSD: 1276
Res  1280  1285  1290
Sup  1270  1265  1260
XAGUSD: 17.11
Res  17.25  17.35  17.45
Sup  17.05  16.90  16.75
WTI: 54.71
Res  54.80  55.20  56.50
Sup  54.35  53.85  53.30