Market Roundup
•US Mar Goods Orders Non Defense Ex Air (MoM) 0.2% forecast,0.7% previous
•Canada Feb Retail Sales (MoM) -0.1% ,0.1% forecast,-0.3% previous
•US Mar Core Durable Goods Orders (MoM) 0.2%, 0.3% forecast,0.5% previous
•US Mar Durables Excluding Defense (MoM) 2.3%,2.1% previous
•US Mar Durable Goods Orders (MoM) 2.6%,2.5% forecast,1.3% previous
•Canada Feb Core Retail Sales (MoM) -0.3%,0.0% forecast,0.5% previous
•US Crude Oil Imports-0.417M ,-1.991M previous
• US Gasoline Production-0.634M,-0.025M previous
• US Crude Oil Inventories -6.368M,1.600M forecast, 2.735M previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Foreign Investments in Japanese Stocks 1,740.0B previous
•23:50 Japan Foreign Bonds Buying -1,005.9B previous
•05:00 Japan Leading Index (MoM) 2.3% forecast, -0.4% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro eased slightly on Wednesday despite stronger German business as investors assessed interest rate cut prospect. German business morale improved more than expected in April, a survey showed on Wednesday, boosting hopes that the worst may be over for Europe's biggest economy although any recovery is not expected to be strong. The Ifo institute said its business climate index rose to 89.4 compared with a reading of 88.8 forecast by analysts in a poll. In March, the reading was revised slightly to 87.9. The Ifo survey showed overall morale was boosted by companies reporting that they were more satisfied with their current business situation, while future expectations also brightened significantly. The European Central Bank is expected to cut rates in June. Immediate resistance can be seen at 1.0717(38.2% fib), an upside break can trigger rise towards 1.0762(50% fib).On the downside, immediate support is seen at 1.0655(23.6% fib), a break below could take the pair towards 1.0600 (23.6% fib).
GBP/USD: The pound eased on Wednesday, surrendering some gains from its biggest one-day rally in four months the previous day, after a softer reading of monthly U.S. business activity battered the dollar.The pound has come under pressure this week, having hit its lowest since November on Monday, after Bank of England officials suggested the central bank was becoming more confident that UK inflation is subsiding, which would indicate that interest rates might fall more quickly than the market currently expects.Sterling was down 0.1% at $1.2458, having risen 0.8% on Tuesday, the most in one day since mid-December. Immediate resistance can be seen at 1.2474 (50%fib), an upside break can trigger rise towards 1.2504(April 15th high).On the downside, immediate support is seen at 1.2409 (38.2 % fib), a break below could take the pair towards 1.2234 (23.6 % fib).
USD/CAD: The Canadian dollar fell against the U.S. dollar on Wednesday after domestic data revealed an unexpected drop in retail sales, fueling expectations that the Bank of Canada may start cutting interest rates in the near future. Canadian retail sales fell by 0.1% in February, primarily due to a decrease in sales at gasoline stations and fuel vendors. This marked the second straight month of declining sales and went against expectations for a 0.1% increase. The Canadian dollar was trading 0.3% lower at 1.37 to the U.S. dollar , after moving in a range of 1.3656 to 1.3728.Immediate resistance can be seen at 1.3709 (EMA 9), an upside break can trigger rise towards 1.3770(23.6 % fib).On the downside, immediate support is seen at 1.3656(38.2 % fib), a break below could take the pair towards 1.3559(50 % fib).
USD/JPY: The U.S. dollar rose past 1.55 level against yen against on Wednesday but gains were limited on intervention fears from the Japanese authorities to prop up their currency. The decline in the yen comes after a string of strong U.S. inflation data pushed the dollar to five-month highs and reinforced expectations that the Federal Reserve is unlikely to be in a rush to cut interest rates this year.The yen's slide against the dollar has revived anticipation of currency intervention. Japanese Finance Minister Shunichi Suzuki and other policymakers have said they are watching currency moves closely and will respond as needed. The dollar was last up 0.2% at 154.98 yen, its strongest since June 1990.Strong resistance can be seen at 155.00 (Psychological level), an upside break can trigger rise towards 155.13 (Daily high).On the downside, immediate support is seen at 154.34 (5 EMA), a break below could take the pair towards 153.63 (38.2% fib).
Equities Recap
Europe's benchmark stock index dropped on Wednesday as financials sagged on disappointing earnings from Swedish lender Handelsbanken, while technology stocks limited losses after ASM International's strong forecast.
UK's benchmark FTSE 100 closed down by 0.06 percent, Germany's Dax ended down by 0.35 percent, France’s CAC finished the day down by 0.17 percent.
Benchmark S&P 500 closed higher in choppy trading on Wednesday, as investors weighed an uptick in Treasury yields amid positive corporate results particularly from technology giants.
Dow Jones closed up by 0.67% percent, S&P 500 closed up by 0.87% percent, Nasdaq settled up by 1.11% percent.
Commodities Recap
Gold prices steadied on Wednesday as risk premiums over tensions in the Middle East eased, while investors strapped in for U.S. economic data due later in the week that could offer clues to the Federal Reserve's interest rate path.
Spot gold was flat at $2,322.09 per ounce by 1:45 p.m. ET (1745 GMT), after having hit its lowest since April 5 in the previous session. U.S. gold futures settled 0.2% lower at $2,338.4.
Oil prices fell on Wednesday as worries over conflict in the Middle East eased and business activity in the United States slowed, although a fall in U.S. crude oil inventories put a floor on those losses.
Brent crude futures fell 40 cents, or 0.45%, to settle at $88.02 a barrel, while U.S. West Texas Intermediate crude futures slipped 55 cents, or 0.66%, to $82.81.
