US DURABLE GOODS ORDERS, FOMC MINUTES MAKES HEADLINES
A light release schedule will circulate through the financial markets on Wednesday, as US investors begin closing out their positions ahead of Thanksgiving.
The first event of note takes place at 08:00 GMT when the European Central Bank (ECB) holds its non-monetary policy meeting. Although monetary policy is off the table, central bankers may discuss issues that impact the Eurozone economy. The ECB has already embarked on a plan to begin winding down quantitative easing. However, that plan also leaves the door open to extending the stimulus package for longer than previously expected.
In the United Kingdom, the Treasury will issue its Autumn Forecast Statement at 12:30 GMT. The statement provides an updated economic outlook and previews the government’s budget over the next year. This includes anticipated spending and income levels.
Shifting gears to economic data, the Mortgage Bankers Association (MBA) will release its weekly report on US mortgage applications for the period ended 17 November. That report is due at 12:00 GMT.
A half hour later, the Department of Labor will report on initial jobless claims for the week ended 18 November. The number of Americans filing for first time unemployment benefits is expected to drop by 9,000 to a seasonally adjusted 240,000. Continuing jobless claims, which track the number of people still receiving unemployment benefits, is expected to rise to 1.1882 million in the period ended 10 November.
The day’s biggest data release of the session will come at 13:30 GMT when the Commerce Department issues its monthly report on durable goods orders. Orders for long-lasting manufactured goods are forecast to climb 0.3% in October following a 2.2% gain the previous month. Excluding transportation equipment, durable goods orders are projected to climb 0.5%.
The Federal Reserve will release the minutes of its most recent policy meeting at 19:00 GMT. The Federal Open Market Committee (FOMC) voted to keep monetary policy on hold on 1 November in a move that was widely predicted by the financial markets. The US central bank will hold one more rate meeting this year, where it is widely expected to hike rates.
The euro continued to trade within a narrow range on Tuesday, as prices hovered in the mid 1.1700 region. The EUR/USD exchange rate remains firmly capped below 1.1800. The US dollar could provide the necessary catalyst for movement on Wednesday ahead of the holiday.
Cable edged slightly higher on Wednesday, but remained capped below the 1.33 US level. The GBP/USD pair continues to trade within a 100-pip range as markets await the latest cues on Brexit negotiations.
The USD/JPY declined on Wednesday, although the pair continued to trade north of the 112.00. The pair was last seen trading at 112.22. The pair faces immediate resistance at the 112.71, the top for the week. The pair is currently trading near the daily support of 112.25