The Morning Update

Wednesday November 8^th, 2023

The USD strengthens, equity markets are flat, oil trades lower and us yields are mixed. The USD continues its rebound after last week lower than expected employment release. Fed chairman to hold a speech later today. G7 released a unified statement regarding the Israel-Hamas war condemning Hamas’ attack on Israel and calling for a humanitarian pause.

Inother news. US voters went to the polls yesterday in 37 States to make their choices on everything from Governorships and local referenda. Democrats faired well in these elections, but we are still far away from the 2024 Presidential Elections.

Incurrency news. BOJ Ueda signal’s chance of exit from easy policy before real wages rise. After a loss of more than 5% this year, People’s Bank of China governor said they will guard against overshooting adding that the CNY has been stable against a basket of currencies. The Chinese CPI figures are expected to be announced tomorrow. At the start of the day the CNY is off marginally (0.03%),JPY down 0.27%, MYR and TWD down 0.20%. AUD and NZD are off by 0.10%. In the trading currencies, the MXN is off 0.25% while the ZAR if off 0.90%.

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Incommodity markets. Oil prices remained under pressure after sliding to their lowest level in more than three months as market focuses on decreasing demand in the US and China. Oil is presently trading down 0.70%, while Nat Gas is flat, Gold is down 0.20%, silver 0.64%, Copper is flat. Agricultural commodities are up with both Wheat and Soybean up over 1%.

Current level USD Index               105.771          Up 0.22%

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CAD continues to be under pressure has it has lost a good portion of the gain obtained after the weaker than expected employment figures. Concerns over oil demand from US and China weighs on the currency. Fed Chairman Powell holding a speech later this morning may offer some clues on the Fed’s future actions.

Current level USD/CAD               1.3767             Up0.07%

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EURCAD continues to trade in a narrow range as it tries to reach September high.

Current level EUR/CAD                1.4700            Down0.20%

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EUR hedging lower for a third consecutive day. ECB policy maker Makhlouf said that the inflation impact and monetary tightening are becoming visible among borrowers. Some risks are fading while others are emerging – huge uncertainties lie ahead.

Current level EUR/USD                1.0675            Down0.23%

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GBPEUR is trading lower for the third straight day while remaining in the middle of last month’s range.

Current level GBP/EUR     1.1484 (0.8703)        Down 0.07%

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GBP is gradually declining as investors worry about UK’s third quarter economic performance. Recession risk remains as the Middle East could lead to higher energy prices.

CurrentlevelGBP/USD                1.2260             Down0.32%

Otherccy levels vs C$. GBPCAD 1.6888  AUDCAD .8859  CADCHF.6389 CADJPY 109.27  CADTHB 25.77  CADCNY 5.2851  CADNOK 8.1133 CADSEK 7.9290 CADDKK 5.0723  CADZAR 13.3952

Otherccy levels vs USD. JPY 150.74  CHF.9004  AUD.6432  NZD .5928 CNY 7.2802  MXN 17.5128  INR 83.2655  PLN 4.1801  CZK 23.088 ZAR 18.4591  ILS 3.8450  AED 3.6729  KWD 0.30890

OtherMajor X levels. EURCHF.9613  EURJPY 160.94  EURSEK 11.615 EURNOK 11.9295  GBPCHF 1.1044  EURAUD 1.6596  GBPAUD 1.9067 AUDCHF.5793  AUDJPY 96961  CHFJPY 166.98