News & Analysis

Stocks recover; Forex mixed – USD steady – EUR Lower – AUDJPY snaps 5 days of loses.

Nov 17, 2017 | Daily Market Outlook

Today’s high impact news:

19:30 EUR ECB President Draghi Speaks
00:30 CAD CPI
00:30 USD Building Permits

U.S. equities rose on Thursday, rebounding from consecutive declines, following strong quarterly results from Wal-Mart and Cisco Systems. Wall Street also cheered a key vote on tax reform. Strong gains were seen across the major indices. The Dow jumped by 187.08, the S&P500 added 21.02. The NASDAQ surged adding 87.08. In yesterday’s report, we did write about the US30 finding support at a previous low. Wal-Mart reported better-than-expected quarterly results, boosted by a surge in grocery and online sales. The House passed a bill Thursday aimed at overhauling the U.S. tax code. If the bill becomes law, it would immediately slash the corporate tax rate to 20 percent from 35 percent. However, the House bill contains key differences from that of the Senate, especially on how to treat state and local tax deductions. Expectations of tax reform have helped stocks reach all-time highs recently.

In Europe, share markets recovered. The FTSE added 14.33 the DAX closed 70.85 higher. Construction and materials were the top performing sector Thursday, on the back of earnings.

FX was a touch dull overnight as most majors made small moves. Data wise retail sales numbers in the U.K. came in higher-than-expected, showing an increase of 0.3 percent month-on-month in October. US unemployment claims unexpectedly rose to 249K. The USD increased 0.12 percent rebounding from a more than three-week low in the previous session, after the U.S. House of Representatives passed their version of the  overhauled tax bill. Retail sales data support the GBP it finished higher to the USD and JPY. The EUR pulled back to the USD and finished flat to the JPY. Our local AUD finishing mixed for the day, flat to the USD and higher to the JPY. The AUDJPY ended a five-day losing streak closing 14 pips higher. Australian employment data did the lift the AUD during yesterday’s Asian session but it failed to hold gains with a strengthening USD.

AUDJPY – after five days in the red bulls finally pull one back helped by yesterday’s employment data. 85.45 remains a key level of defense for buyers. With a supply zone above the current picture doesn’t look that overly bullish.

Good trading from Eightcap.

Sources; Reuters, CNBC

* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.

Follow Us