Summary:

• Swedish inflation report deals a blow to the SEK
• GBP lowers on the back of a deadlock in Brexit talks
• Oil prices steady, grains march slightly higher ahead of the key WASDE report

The US dollar hasn’t been able to recoup its losses made during the Asian session thus far while the Antipodean currencies are the best performing within the G10 basket (AUD is up 0.4% and NZD rises all but 0.5%), there have been no specific reports standing behind those rises though. On the flip side, the Swedish krona is losing the most against the US dollar and the common currency as well. This is a ramification of the bleak inflation report which has receded a date when a first interest rate hike could take place.

Moreover, the British pound has weakened recently after the headlines related to Brexit talks popped. According to Barnier, the European Union’s chief Brexit negotiator, talks have reached a deadlock whereas a decisive progress is possible to be made in the next two months. The pound has slumped immediately below 1.3150 and now it’s the largest laggard in the G10 basket being down against the greenback over 0.5%. Furthermore, the EURGBP has jumped above 0.9000 for the first time since 14 September.

As far as commodities are concerned, oil prices have been on the back foot (down more than 1%) as of yet digesting an unexpected build in stockpiles reported by the API on Wednesday. Keep in mind that the DoE will reveal its weekly update on a shift in oil inventories later in the day which could be decisive for oil prices in the near term. Finally, let us present our yesterday’s broader analysis following the OPEC monthly report. On top of that, Thursday its the pivotal day for grains and other soft commodities owing to the WASDE report which is scheduled to be released at 5:00 pm BST. At the time of writing grains are being quoted as follows: wheat increases 0.3%, corn treads water and soybean is up 0.35%.

The beginning of trading on Thursday across the major European stock markets has been quite benign despite quite large moves seen in the FX market. Currencies were more volatile on the back of the FOMC minutes which weren’t conclusive though. The euro’s strength has been slightly reduced since then which could be a sigh of relief for the European stocks.

Bitcoin’s buyers have gone nuts once again as the price of the most famous digital currency has established its new all-time high storming $5100 in early trading on Thursday. Notice that Bitcoin has gained as much as $800 since Sunday and if that a move keeps its impetus till the end of the week, it could end up with the best week for Bitcoin ever. How far can we go? Let’s take a closer look at Bitcoin.

Thursday seems to be pretty interesting when it comes to an amount of macroeconomic releases which will be enriched by several speeches of central bankers (mainly from the FED and the ECB). Moreover, EIA is expected to release its weekly update on oil stocks which could affect oil prices (API showed an unexpected build). Bear in mind that grains could be exposed to heightened volatility as well due to the WASDE release.