News & Analysis

US Stocks Seven Straight; GBPUSD three week highs; GDP Sinks CAD; BoJ no surprises

Nov 1, 2017 | Daily Market Outlook

Today’s high impact news:

20:30 GBP Manufacturing PMI

23:15 USD ADP Non-Farm Employment Change

US stocks closed firmer on Tuesday, making it seven straight monthly gains.

  • Dow Jones +28.50
  • S&P500 +2.43
  • NASDAQ +28.71

The S&P 500 and the Dow Jones industrial average rose 2.2 percent and 4.3 percent, respectively, in October. The NASDAQ, meanwhile, gained 3.6 percent and is on track to post its fourth straight monthly gain. More than half the S&P500’s gains came from just five stocks, however, according to Standard & Poor’s: Facebook, Amazon, Apple, Google-parent Alphabet and Microsoft. All of these companies, except for Apple, have already reported blockbuster quarterly earnings, sending their shares higher (Apple will release its latest quarterly figures Thursday after the close).

Europe’s main indexes traded higher, the FTSE +5.27. The DAX observed a German bank holiday. The GBPUSD also hit a three-week high after a second strong session, adding 77 pips. The EUR traded flat to the USD and gained to most other majors.

Around Asia, the Bank of Japan held rates as expected. No real surprises from the Central bank as Kuroda advised no change to our stance of proceeding with strong monetary easing to hit 2% price target at earliest possible date. The JPY had a small move up but settled lower to flat to most majors. The EURJPY and USDJPY finished the session with strong gains.

Things continue to sour for Canadian data as the GDP had a shocking miss dropping to -0.1% from 0.1% expected. The CAD sunk to the USD and other majors. The USDCAD jumped 61 pips after the release.

New Zealand employment data came out better than expected this morning, jumping to 2.2% from 0.8%. Unemployment dropped to 4.6% the Kiwi jumped adding over 50 pips to the USD. New Zealand’s Prime Minister Jacinda Ardern has also advised new laws will be coming into place to restrict foreign property investment in New Zealand.

NZDUSD  – solid jump off this morning’s excellent employment data.

Good trading from Eightcap.

Sources Reuters, CNBC

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