|FOMC minutes raise expectations||Commodities continue to drop|
|ECB to clarify December QE||Slight USD weakness across pairs|
Equities around the world continue to move higher after the notes of the Fed’s October FOMC policy meeting strengthened expectations for an interest rate hike in December, a move that has been highly debated and anticipated. “It may well become appropriate to initiate the normalization process at the next meeting,” read the minutes of last month’s meeting, and today, a few Fed officials are likely to further comment on yesterday’s notes. Atlanta Fed President Dennis Lockhart and Fed Vice Chairman Stanley Fischer are due to speak later today.
Initial jobless claims for this month reported numbers in line with expectations, and marked a contraction from last month’s performance.
In Europe, the central bank will release notes of its October meeting which may give market participants more clarity on the bank’s intentions of expanding its quantitative easing program in December. This will most likely put more pressure in the euro, which up to this date has weakened by almost 10% in value since it was first announced earlier this year.
Commodities continue to sink as demand contractions for iron ore in Asia moves to record lows. Nickel prices closed near a twelve-year low as the latest surveys reported demand from China for the commodity is evaporating. Citigroup recently reported that commodity markets may continue to run softer due to strong dollar, and the increasing likelihood of the Fed raising interest rates in December will extend the trend.
EURUSD levels have move slightly lower since yesterday’s FMOC minutes, a move that many analyst attribute to the lack of fresh hints on the Dec rate hike options.
GBPUSD strengthening considerably in the last two sessions, even though the latest round of Retail Sales data printed softer figures than anticipated.
AUDUSD also moving higher this session, and with no other major economic events coming up the currency pair will likely remain at this levels.