Allan von Mehren
Danske Bank A/S
Market movers ahead
We expect another solid US employment report with nonfarm payrolls for October of 240,000, above consensus of 225,000.
The ECB should remain on hold, although the pressure from low inflation, weak activity and market turmoil have increased in October.
We expect Swedish industrial production to post a strong rebound in September.
We estimate Norwegian manufacturing production declined in September after a strong increase in August. We estimate Norwegian PMI fell further in October.
The Danish FX reserves may attract some attention due to the strong krone.
Global macro and market themes
The surprise Bank of Japan move gives support to risk assets.
Pressure is rising on the ECB to follow but it will take time for it to act.
The hawkish Fed and dovish Bank of Japan give new fuel to USD/JPY.
Focus turns to the US next week – ISM to give more clues to US slowing.
Focus
- Japan: BoJ expands QE programme in surprise easing move,, 31 October 2014.
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EUR/USD struggles to build on Wednesday's gains and fluctuates in a tight channel near 1.0700 on Thursday. The data from the US showed that weekly Jobless Claims held steady at 208,000, helping the USD hold its ground and limiting the pair's upside.
GBP/USD fluctuates above 1.2500 following Wednesday's rebound
GBP/USD stays in a consolidation phase slightly above 1.2500 on Thursday after closing in the green on Wednesday. A mixed market mood caps the GBP/USD upside after Unit Labor Costs and weekly Jobless Claims data from the US.
Gold retreats to $2,300 despite falling US yields
Gold stays under bearish pressure and trades deep in negative territory at around $2,300 on Thursday. The benchmark 10-year US Treasury bond edges lower following the Fed's policy decisions but XAU/USD struggles to find a foothold.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
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Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.