EUR Surge Continues Post Draghi

Daily Morning Report

Main topics on our daily morning report following an eventful mid-week are:

AUDUSD with a high of 0.78579, a low of 0.78187, closing at 0.78424. The pair gained roughly 0.66%, with the Aussie holding gains after jobs data release in Asia and with Chinese GDP and industrial output data supported the sentiment of continued demand from a key export stakeholder.

USDJPY gained about 0.05%, heading in the direction of 112.460 and up towards 113.00.

EURUSD following Draghi’s speech traded around the area of 1.17812, up around 0.13%.

The US dollar index, measuring the greenback’s strength against of basket of six other currencies, fell by 0.05% to 93.25, hitting a breakeven point after data showed continued weakness in the housing sector. However, losses were capped by gains in the US treasury yields.

China publicised data on its 3rd quarter GDP, which confirmed economists’ expectations, showing quarter-based gains of 1.7% and a 6.8% increase on year, while industrial output went up 6.6%, beating the expected 6.2% rise envisaged in September. Fixed asset management in the country rose by 7.5%, below the estimated 7.7%.

Figures on the world’s 3rd largest economy, Japan trade balance showed a surplus of ¥670 billion, a lot larger than the ¥560 billion surplus forecast in September.

Japanese presidential elections are only a few days away. Sunday, 22nd October 2017 the Japanese will elect a new president. This event is likely to cause volatility in the financial market and impact the availability of liquidity.

19,800 workers flooded Australia’s job market compared with the expected 15,000 under employment change, supporting an unemployment rate dip of 5.5% from up a 5.6%.

Asian stocks reacted to slower economic growth in China, shedding early gains on Thursday. According to Tokyo Reuters, this movement was a pull-back from 10-year highs.

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