Central banks dominate the day

November 7, 2017

Another data-packed day, but a central bank interest rate meeting and central bank speakers are the highlight of the trading day.

The EUR/USD pair dropped down into the $1.15 region for a good portion of the session, with both currencies failing to assert itself over the other. The pair traded as low as $1.15793 before bumping back up to its current level of $1.1610. The pound continues to struggle against major currencies after last week’s interest rate increase, however, it has strengthened since this time yesterday. The GBP/USD pair is currently trading at $1.3172.

US stocks all finished higher overnight, with the NASDAQ being the best performer. It closed 22 points higher (+0.33%) to close at 6,786.44. The S&P 500 gained 3.29 points (+0.13%) to close at 2,591.13. The Dow added a meagre 9.23 points (+0.04%) to end the session at 23,548.42. European stocks were a mixed bag, the FTSE up 1.93 points (+0.03%) to 7,562.28 while the DAX shaved 10.07 points (-0.07%) to close at 13,468.79.

Gold took a leap up overnight as uncertainty and a weakening USD pushed the price higher. It is up over $10 since this time yesterday, where it currently trades at $1,282.80. Oil is another commodity that seems to be on a strong run, seemingly blasting its way to $60 a barrel. It is currently trading at $57.24 amid political uncertainty in oil-rich Saudi Arabia.

Today’s events are dominated by an interest rate meeting by the RBA. While there is not much talk of a change in monetary policy settings, it will be important to listen to what the RBA Governor says in regards to the future of monetary policy. ECB President Mario Draghi and Fed Chair Janet Yellen are also due to speak later tonight and in the early hours of tomorrow morning respectively. Other announcements today include:

Canada – BoC Governor Stephen Poloz speaks

New Zealand – GDT Price Index

UK – Halifax HPI

US – IBD/TIPP Economic Optimism, JOLTS Job Openings, FOMC Member Randal Quarles speaks

Europe – German Industrial Production, French Government Budget Balance, Swiss Foreign Currency Reserves, Italian Retail Sales, European Retail PMI & Retail Sales ECOFIN Meetings