Analysts at UOB explained that the Bank of England Deputy Governor Jon Cunliffe again raised doubts whether he will support a BOE rate hike next week.
"He described the exact timing of BOE rate rise “is a more open question” in an interview published by a Welsh newspaper on Monday (23 Oct). He said that he does not want to anticipate Nov rate decision, but “for me the economy has clearly slowed this year”. He also noted that if the BOE forecast of higher domestic inflation comes to pass, then rates will need to go up and that rates will need to rise over next three years."
Tuesday, October 24, 2017
GBP/USD accelerates decline below 1.3150
The greenback remains strong supported by US bond yields. The 10-year yield rose above 2.40% to the highest since March. Economic data added support to the US dollar with the PMI. The composite flash rose above exportations to monthly highs. Regarding data, the next key report will come from the UK with the Q3 GDP reading tomorrow.
GBP/USD tested yesterday’s highs near the 1.3220 area in Asian hours and then turned to the downside. It has been moving with a bearish bias and accelerated below 1.3156 (Oct 23 low). It bottomed recently at 1.3111. Cable still appears under pressure and is likely to remain that way as long as it holds below 1.3160.
The pound continues to be affected by Brexit uncertainties overall and today also from a rally in EUR/GBP that is rising 70 pips. The euro is among the top performers in the market ahead of Thursday’s European Central Bank meeting.
GBP/USD tested yesterday’s highs near the 1.3220 area in Asian hours and then turned to the downside. It has been moving with a bearish bias and accelerated below 1.3156 (Oct 23 low). It bottomed recently at 1.3111. Cable still appears under pressure and is likely to remain that way as long as it holds below 1.3160.
The pound continues to be affected by Brexit uncertainties overall and today also from a rally in EUR/GBP that is rising 70 pips. The euro is among the top performers in the market ahead of Thursday’s European Central Bank meeting.
US Dollar Index attempting to retake 94.00
The greenback, tracked by the US Dollar Index (DXY), has managed to bounce off daily lows in the 93.70/65 band and is now hovering over the 94.00 handle.
The index is now extending the recovery to the 94.00 neighbourhood backed by another up tick in yields of the US 10-year benchmark, which are trading in the upper end of the range around 2.41%.In the meantime, the upbeat tone remains intact around USD following another record high in US stocks.
Additionally, investors stay vigilant on the imminent announcement by President Trump of Yellen’s successor at the helm of the Federal Reserve, with (hawkish) candidate J.Taylor still being the front-runner ahead of FOMC’s (dovish) J.Powell and former FOMC Governor K.Warsh (centrist/hawkish). In the US data space, Markit’s advanced manufacturing PMI is expected at 54.5 for the current month, while services PMI is seen at 55.9, both print surpassing initial estimates. Later in the session, the American Petroleum Institute (API) will publish its weekly report on US crude oil supplies.
The index is now extending the recovery to the 94.00 neighbourhood backed by another up tick in yields of the US 10-year benchmark, which are trading in the upper end of the range around 2.41%.In the meantime, the upbeat tone remains intact around USD following another record high in US stocks.
Additionally, investors stay vigilant on the imminent announcement by President Trump of Yellen’s successor at the helm of the Federal Reserve, with (hawkish) candidate J.Taylor still being the front-runner ahead of FOMC’s (dovish) J.Powell and former FOMC Governor K.Warsh (centrist/hawkish). In the US data space, Markit’s advanced manufacturing PMI is expected at 54.5 for the current month, while services PMI is seen at 55.9, both print surpassing initial estimates. Later in the session, the American Petroleum Institute (API) will publish its weekly report on US crude oil supplies.
DOW fresh record highs on strong earnings
Major US equity indices witnessed a mixed opening on Tuesday, with the Dow Jones Industrial Average (DJIA) outperforming the broader indices and notched fresh record highs.
During the opening hour of trade, DJIA surged over 150-points to 23,435 on the back of strong earnings from Caterpillar and 3M. Strong earnings-driven rally was partly negated by a drop in shares of Whirlpool Corp. and kept a lid on any meaningful up-move for the S&P 500 Index, which added nearly 3-points to 2,567. Meanwhile, tech-heavy Nasdaq Composite Index treaded water near yesterday's closing level of 6,586.
Third-quarter earnings continue to come in largely positive, with around 75% of the S&P 500 companies that reported results till Monday have surpassed profit estimates, which coupled optimism over the US President Donald Trump's tax plans now seems to suggest that another round of records could be in store for the main benchmark indices.
Moving ahead, investors' attention would remain glued to Thursday's ECB monetary policy decision and the release of Q3 US GDP number on Friday. Also in focus would be the announcement of a new Federal Reserve Chair, which would influence market expectations about the central bank's monetary policy outlook and impact investors' appetite for riskier assets - like equities.
During the opening hour of trade, DJIA surged over 150-points to 23,435 on the back of strong earnings from Caterpillar and 3M. Strong earnings-driven rally was partly negated by a drop in shares of Whirlpool Corp. and kept a lid on any meaningful up-move for the S&P 500 Index, which added nearly 3-points to 2,567. Meanwhile, tech-heavy Nasdaq Composite Index treaded water near yesterday's closing level of 6,586.
Third-quarter earnings continue to come in largely positive, with around 75% of the S&P 500 companies that reported results till Monday have surpassed profit estimates, which coupled optimism over the US President Donald Trump's tax plans now seems to suggest that another round of records could be in store for the main benchmark indices.
Moving ahead, investors' attention would remain glued to Thursday's ECB monetary policy decision and the release of Q3 US GDP number on Friday. Also in focus would be the announcement of a new Federal Reserve Chair, which would influence market expectations about the central bank's monetary policy outlook and impact investors' appetite for riskier assets - like equities.
Tomorrow Results/Board Meeting
| Symbol | Company | Industry | Purpose | BoardMeetingDate |
| PNBHOUSING | PNB Housing Finance Limited | - | Results | 25-Oct-17 |
| HCLTECH | HCL Technologies Limited | - | Results/Dividend | 25-Oct-17 |
| CIGNITITEC | Cigniti Technologies Limited | - | Results/Others | 25-Oct-17 |
| PIIND | PI Industries Limited | - | Results | 25-Oct-17 |
| RBLBANK | RBL Bank Limited | - | Results | 25-Oct-17 |
| ASTEC | Astec LifeSciences Limited | - | Results/Others | 25-Oct-17 |
| EVERESTIND | Everest Industries Limited | - | Results | 25-Oct-17 |
| M&MFIN | Mahindra & Mahindra Financial Services Limited | - | Results | 25-Oct-17 |
| PNBHOUSING | PNB Housing Finance Limited | - | Results/Others | 25-Oct-17 |
| QUESS | Quess Corp Limited | - | Results | 25-Oct-17 |
| TATACOMM | Tata Communications Limited | - | Results | 25-Oct-17 |
| NET4 | Net 4 India Limited | - | Board meeting Rescheduled | 25-Oct-17 |
| PIIND | PI Industries Limited | - | Results/Dividend | 25-Oct-17 |
| TFL | Transwarranty Finance Limited | - | Results | 25-Oct-17 |
| GEOJITFSL | Geojit Financial Services Limited | - | Results | 25-Oct-17 |
| ENGINERSIN | Engineers India Limited | - | Results | 25-Oct-17 |
| IDFCBANK | IDFC Bank Limited | - | Results/Others | 25-Oct-17 |
| TEJASNET | Tejas Networks Limited | - | Results | 25-Oct-17 |
| DCMFINSERV | DCM Financial Services Limited | - | Results/Others | 25-Oct-17 |
| HCL-INSYS | HCL Infosystems Limited | - | Results | 25-Oct-17 |
| VGUARD | V-Guard Industries Limited | - | Results | 25-Oct-17 |
| TATAELXSI | Tata Elxsi Limited | - | Results | 25-Oct-17 |
| ATFL | Agro Tech Foods Limited | - | Results | 25-Oct-17 |
| SYNGENE | Syngene International Limited | - | Results | 25-Oct-17 |
| EMAMILTD | Emami Limited | - | Results | 25-Oct-17 |
| VGUARD | V-Guard Industries Limited | - | Results | 25-Oct-17 |
| EXIDEIND | Exide Industries Limited | - | Results/Dividend | 25-Oct-17 |
| SKFINDIA | SKF India Limited | - | Results | 25-Oct-17 |
| NIITLTD | NIIT Limited | - | Results | 25-Oct-17 |
| HINDUNILVR | Hindustan Unilever Limited | - | Results/Dividend | 25-Oct-17 |
| SUTLEJTEX | Sutlej Textiles and Industries Limited | - | Results | 25-Oct-17 |
| COROMANDEL | Coromandel International Limited | - | Results | 25-Oct-17 |
| GLAXO | GlaxoSmithKline Pharmaceuticals Limited | - | Results | 25-Oct-17 |
| MINDTREE | MindTree Limited | - | Results/Dividend | 25-Oct-17 |
| KOTAKBANK | Kotak Mahindra Bank Limited | - | Results | 25-Oct-17 |
| MPHASIS | MphasiS Limited | - | Results | 25-Oct-17 |
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