America Roundup:Dollar slips as U.S. Treasury plans to increase bond buybacks,Wall Street, rises ,Gold surges over 3%,Oil prices settle near 4-week high

Market Roundup

• US Crude Oil Inventories 4.405M, 0.200M forecast, 17.423M previous

•US Cushing Crude Oil Inventories -1.314M, 1.611M previous

•US Gasoline Production 0.143M, -0.001M previous

•US EIA Refinery Crude Runs (WoW) 0.216M, 0.026M previous

•US Distillate Fuel Production -0.054M, 0.050M previous

•US Crude Oil Imports -1.754M, 1.768M previous

•US Heating Oil Stockpiles -0.537M, 0.192M previous

•US EIA Weekly Refinery Utilization Rates (WoW) 1.0%, -0.3% previous

•US EIA Weekly Distillates Stocks -1.530M, -0.900M forecast, -0.010M previous

•US Gasoline Inventories 0.688M, -1.200M forecast, -0.968M previous

•US 20-Year Bond Auction 5.204%, 5.163% previous

 Looking Ahead Economic Data (GMT) 

•02:30 Australia Unemployment Rate (Jul) 4.4% forecast, 4.4% previous

•02:30 Australia Full Employment Change (Jul) 29.3K previous

•02:30 Australia Employment Change (Jul) 11.7K forecast, 76.3K previous

•02:30 Australia Reserve Assets Total (Jul) 1,18,842.0B previous

•02:30 Australia Participation Rate (Jul) 66.9% forecast, 67.0% previous

Looking Ahead Events And Other Releases (GMT)  

•NO Data Ahead

Currency Forecast

EUR/USD : The euro rose    on Wednesday  as dollar tumbled after the U.S. Treasury Department said it would boost liquidity support for longer-dated securities, following a broad selloff fueled by fears over swelling sovereign debt.The U.S. Treasury Department said it would double the size of liquidity support buyback operations for longer-dated nominal coupon securities to at least $4 billion per operation from $2 billion.U.S. long-dated government yields fell by as much as 10 basis points, dragging European government bond yields down too. U.S. long bonds had hit their highest in nearly 20 years on Tuesday, at nearly 5.34%, reflecting growing concerns about inflation and high debt.. Immediate resistance can be seen at 1.1674(Higher BB), an upside break can trigger rise towards 1.1699(38.2%fib).On the downside, immediate support is seen at 1.1628(50%fib), a break below could take the pair towards 1.1552(61.8%fib).

GBP/USD: The pound rose on Wednesday as easing government bond yields boosted risk appetites.The U.S. Treasury Department said it would double the size of liquidity support buyback operations for longer-dated nominal coupon securities to at least $4 billion per operation from $2 billion.Investors barely reacted to minutes from the U.S. Federal Reserve's July meeting, which showed deepening ‌concern about inflation with "several" policymakers ready to raise interest rates. "Many" said a rate hike would be needed if inflation does not decline to the U.S. central bank's 2% target.. .Immediate resistance can be seen at 1.3663(Higher BB), an upside break can trigger rise towards 1.3690(23.6%fib).On the downside, immediate support is seen at 1.3552(38.2%fib), a break below could take the pair towards 1.3524(Daily low).

 USD/CAD: The Canadian dollar strengthened against the U.S. dollar on Wednesday as loonie was boosted as investors welcomed the pause in new U.S. tariffs on Canadian goods, easing concerns over trade tensions between the two countries. U.S. President Donald Trump announced late Tuesday that the U.S. would delay imposing new 50% tariffs on Canadian goods for three days, saying the two countries had reached an agreement. Traders are now awaiting the minutes from the U.S. Federal Reserve’s July meeting, due later on Wednesday, for further clues on the central bank’s outlook for future interest rates. Meanwhile, a stalemate in the Middle East lifted oil prices to nearly three-week highs, keeping the inflation risk alive. Immediate resistance can be seen at 1.3953(50%fib), an upside break can trigger rise towards 1.4025(SMA 20).On the downside, immediate support is seen at 1.3853(Lower BB), a break below could take the pair towards 1.3820(61.8%fib).

USD/JPY:  The U.S. dollar dipped against yen  on Wednesday after the U.S. Treasury Department said it would boost liquidity support for longer-dated securities, following a broad selloff fueled by fears over swelling sovereign debt.U.S. Treasury announcement aimed at boosting liquidity in long-term debts to stop the upward march in yields, which had rattled investors and dented risk appetite across global markets. The benchmark 30-year U.S. Treasury yield   fell about 9 basis points to 5.195%, after touching its highest level since 2007 on Tuesday. Falling Treasury yields tend to support emerging-market assets by narrowing the relative appeal of safer developed-market debt. Immediate resistance can be seen at 160.20 (SMA 20), an upside break can trigger rise towards 160.67(50%fib).On the downside, immediate support is seen at  158.09(Daily  low) a break below could take the pair towards 156.63 (23.6%fib).

Equities Recap

European shares slipped to a nearly three-week low on Wednesday as higher oil prices and inflation concerns outweighed relief from falling bond yields following the U.S. Treasury’s announcement of additional liquidity support for longer-term debt.

UK's benchmark FTSE 100 closed down by 0.14  percent, Germany's Dax ended down  by 0.14 percent, France’s CAC finished the day down by 0.09 percent.

U.S. stock futures were steady on Wednesday after a tech-led selloff hit Wall Street in the previous session, with investors focused on inflation risks and rising Middle East tensions.

Dow Jones closed up by  0.22% percent, S&P 500 closed up by 0.22% percent, Nasdaq settled up by 0.16%  percent.

Commodities Recap

Crude oil prices rose to a nearly four-week high on Wednesday as Middle East tensions escalated after the UAE suspended financial and economic transactions with Iran, while shipping traffic through the Strait of Hormuz remained limited.

Brent crude futures settled at $91.62 a barrel, up 60 cents, or 0.7%. U.S. West Texas ​Intermediate crude futures rose 89 cents, or 1.1%, to settle at $85.83 a barrel.

Gold surged more than 3% to a two-and-a-half-month high on Wednesday after the U.S. Treasury announced surprise liquidity support, pushing bond yields and the dollar lower.

Spot gold climbed 3.6% to $4,487.91 per ounce by 2:10 p.m. EDT (1810 GMT) ​after touching its highest level since June 4 at $4,499.20 earlier in the session. U.S. gold ​futures settled 2.8% higher at $4,545.30.