German private-sector growth slowed to its lowest level in more than three years as manufacturing and services both lost momentum, below forecasts, while manufacturing in France hit a 25-month low, widely-watched surveys showed.
The euro was the only big mover, with broader currency markets treading water as investors stay nervous about which direction to take despite some calm coming back into the market after this week’s sharp falls in equity prices.
The single currency, earlier trading flat, dropped 0.4 percent to $1.1422 after the surveys were published.
The yen edged lower to 112.48 yen per dollar, but remains almost two percent up since Oct. 4.
The dollar index, which measures the greenback against major currencies, was unchanged at 95.927.
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• EUR/USD Technical Analysis: Euro Sellers Threaten October Bottom
The Euro recoiled from resistance establishing the series of lower highs against the US Dollar initiated in late September. Prices slipped back through the inflection area in the 1.1543-58 zone and aiming for October’s low at 1.1432 once again.
A daily close below this barrier broadly opens the door for a move down toward support in the 1.1268-96 region, last tested in mid-August. Alternatively, push back above 1.1558 and the minor 1.1596-1.1620 resistance area opens the door for a push above the 1.17figure.
• The Chinese yuan is expected to weaken further in the next six months, a Goldman Sachs analyst said on Wednesday.
Timothy Moe, co-head of Asia macro research, said the bank expects China's currency to "pop over" the psychological barrier of 7 per dollar, to reach 7.1 in the next six months. The currency pair is trading at around 6.94 as the yuan has declined by 6 percent against the greenback year-to-date.
• As reported by Bloomberg, the Wall Street Journal's covered of US President Trump shows the White House administration growing increasingly antsy as Federal Reserve chair Jerome Powell proves to be impossible to control, as noted by the administration's comments on the Trump-selected Fed head.
"President Donald Trump stepped up his attacks on Federal Reserve Chairman Jerome Powell, saying he “maybe” regrets appointing him to the post and demurring when asked under what circumstances he would fire the central bank chief."
• Prime Minister Shinzo Abe of Japan faces a tough balancing act as he heads to Beijing for a Thursday summit with Chinese President Xi Jinping.
Japan's often fraught relations with China are improving — as highlighted by Abe's Oct. 25-27 visit, the first stand-alone journey to the country by a Japanese leader in nearly seven years.
But it comes as long-time ally and security guarantor the United States wages a tariff war on China, Japan's biggest trading partner, while occasionally tossing ominous threats Tokyo's way as well.
• Japanese manufacturing activity expanded in October at the fastest rate in six months as new export orders returned to growth, a preliminary survey showed on Wednesday, a sign most companies have so far avoided damage from trade frictions.
The Flash Markit/Nikkei Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 53.1 in October from a final 52.5 in September.
The index remained above the 50 threshold that separates contraction from expansion for the 26th consecutive month and reached the highest level since April.
• Barclays reported stronger-than-anticipated earnings on Wednesday, despite ongoing macroeconomic uncertainty and lingering concerns over Brexit.
The U.K.-based bank posted £1 billion ($1.29 billion) in net income for the three-month period ending Sept 30. Analysts at data firm Refinitiv had been expecting third-quarter net income to come in at around £723 million.
• Brent crude prices stabilized on Wednesday after heavy losses the day before, with looming U.S. sanctions against Iran back in focus.
Front-month Brent crude oil futures LCOc1 were at $76.52 a barrel at 0658 GMT, up 1 cent from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were weaker, down 10 cents at $66.33 a barrel, pressured by a report by the American Petroleum Institute (API) that U.S. crude stocks rose by 9.9 million barrels in the week to Oct. 19 to 418.4 million barrels.
Reference: Reuters, CNBC
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