Market Overview: October 23, 2024
Today’s market is largely driven by key central bank decisions and speeches from major figures. Here’s a look at the key highlights and movements:
Key Data Points
- BoC Interest Rate Decision: Canada’s central bank is expected to keep rates steady at 3.75%, but markets are closely watching for potential forward guidance, with a press conference to follow.
- ECB Speeches: Multiple speeches from European Central Bank members are scheduled today, including those by President Lagarde and ECB’s Lane. These are expected to provide insights into the ECB’s current outlook on inflation and future monetary policy.
- Fed Speeches: We also have speeches from various members of the U.S. Federal Reserve, including Fed’s Bowman and Barkin, which could hint at future interest rate policy.
Energy Movements:
- Crude Oil: Prices are slightly down, with WTI crude at $71.38 per barrel, reflecting a 0.50% decrease, while Brent crude trades at $75.73 per barrel, down 0.41%. Despite this, weekly gains suggest the market is balancing out after a volatile period.
- Natural Gas: Prices remain under pressure, falling by 0.73% to $2.29 per MMBtu, marking a weekly decline of 3.08%. The sector continues to see sharp declines for the month.
Currency Movements
- EUR/USD: The Euro remains steady at 1.07957, virtually unchanged on the day. Traders are waiting for insights from the ECB speeches to determine the currency’s next direction. Persistent inflation and weak economic growth in the Eurozone are still weighing on the currency.
- GBP/USD: The British pound is holding at 1.29831, gaining 0.02%. Anticipation around Bank of England speeches is high today. Governor Bailey is among the speakers. Their outlook on inflation and rate hikes could lead to further volatility.
- AUD/USD: The Australian dollar saw a slight decrease, trading at 0.66666, down 0.22%. Australia’s currency remains under pressure due to weakening commodity prices. However, it is up for the week thanks to improving risk sentiment.
- NZD/USD: The New Zealand dollar has also slipped, now at 0.60308, down 0.20%. Slower economic growth and falling commodity prices are driving the decline. More speeches from the RBNZ are expected. They will shed light on future policy.
- USD/JPY: The yen has weakened further, reaching 152.27, up 0.74% on the day. The strong U.S. dollar, buoyed by safe-haven demand and Federal Reserve policy expectations, is pushing the yen lower.
- USD/CNY: The Chinese yuan remains relatively flat at 7.14071, up only 0.05%. Economic data from China, including trade figures, continue to point towards slower growth, which is weighing on the currency.
- USD/CHF: The Swiss franc is trading at 0.86462, down 0.11% as investors favor the dollar over traditional safe-haven currencies like the franc, particularly with concerns over global inflation.
Metals Market:
- Gold: Trading at $2752.06 per ounce, gold has seen a 0.20% increase today, maintaining its strong momentum for the week and month, driven by demand for safe-haven assets.
- Silver: Slightly down at $34.70 per ounce, silver remains stable despite a 9.37% rise for the week, boosted by industrial demand and market uncertainty.
Gold price by GoldBroker.com
Things to Keep an Eye on
- BoC’s Interest Rate Decision and Press Conference: Traders will closely monitor this. They want to gauge the BoC’s outlook on inflation and economic growth.
- ECB and Fed Speeches: Markets will look for any hints regarding future monetary policy adjustments and economic forecasts.
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