Market Roundup
• Fed leaves policy rate unchanged as expected
• Fed Chair Powell: further inflation progress not assured
• US Job openings hit three-year low
• Canada Apr Manufacturing PMI 49.4 ,50.2 forecast, 49.8 previous
• US Apr Manufacturing PMI 50.0,49.9 forecast,51.9 previous
• US Mar Construction Spending (MoM) -0.2% ,0.3% forecast,-0.3% previous
• US Apr ISM Manufacturing Employment 48.6,47.4 previous
• US Apr ISM Manufacturing New Orders Index 49.1,51.4 previous
• US Apr ISM Manufacturing Prices 60.9, 55.5 forecast,55.8 previous
• US Mar JOLTs Job Openings 8.488M,8.680M forecast,8.756M previous
• US Apr ISM Manufacturing PMI 49.2, 50.0 forecast,50.3 previous
• US Cushing Crude Oil Inventories -0.659M previous
• US Crude Oil Inventories7.265M, -2.300M forecast,-6.368M previous
Looking Ahead Economic Data(GMT)
•01:00 AU Mar Building Approvals (YoY) 5.20% forecast,10.00% previous
•01:00 AU Mar Private House Approvals 10.7% previous
•01:00 AU Building Approvals (MoM) 3.5% forecast, -1.9% previous
•01:00 AU Trade Balance 7.190B forecast, 7.280B previous
•01:00 AU Exports (MoM) -2.2% previous
•01:00 AU Imports (MoM) 4.8% previous
Looking Ahead Events And Other Releases(GMT)
•No Data Ahead
Currency Summaries
EUR/USD: The euro strengthened against dollar on Wednesday after the Federal Reserve left its key interest rate unchanged. The Federal Open Markets Committee concluded its two-day monetary policy meeting with a unanimous decision to let the Fed funds target rate stand at 5.25%-5.50%.The accompanying statement left the timing of any rate cut in doubt, and Fed officials underscored their concern that the first months of 2024 have done little to build the confidence they seek in falling inflation.At the subsequent press conference, Fed Chair Jerome Powell suggested that while the central bank remains focused on bringing inflation back to its 2% target, he noted progress toward that goal and dismissed the notion of an imminent rate hike. The euro gained 0.5% to $1.0718. Immediate resistance can be seen at 1.0721(50% fib), an upside break can trigger rise towards 1.0751(61.8% fib).On the downside, immediate support is seen at 1.0650 (Daily low), a break below could take the pair towards 1.0635(23.6% fib).
GBP/USD: The pound held steady on Wednesday after the U.S. Federal Reserve signaled it is still leaning toward eventual reductions in borrowing costs, but repeated that it wants to gain "greater confidence" that inflation will continue to fall before cutting rates. The statement was largely as expected while Fed Chair Jerome Powell also said at a press conference that it is unlikely that the U.S. central bank's next move will be a hike, easing some concerns about the Fed potentially pivoting to a more hawkish stance. Fed fund futures traders are now pricing in 35 basis points of easing this year, up from 29 basis points before the Fed statement. The pound strengthened 0.34% to $1.2532. Immediate resistance can be seen at 1.2569 (38.2%fib), an upside break can trigger rise towards 1.2655(50 % fib).On the downside, immediate support is seen at 1.2488 (Daily low), a break below could take the pair towards 1.2464 (23.6 % fib).
USD/CAD : The Canadian dollar strengthened against its U.S. counterpart on Wednesday, clawing back some of the previous day's sharp decline, as the Federal Reserve's signaling about prospects for interest rate cuts was not as hawkish as some investors had feared. Canadian manufacturing activity slowed in April, extending a lengthy period of contraction for the sector. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to a seasonally adjusted 49.4 in April from 49.8 in March, staying below the 50 threshold for the 12th straight month. The loonie was trading 0.5% higher at 1.3710 to the U.S. dollar, or 72.94 U.S. cents, after it touched intraday on Tuesday an 11-day low at 1.3784. .Immediate resistance can be seen at 1.3788 (23.6%fib), an upside break can trigger rise towards 1.3847 (Higher BB).On the downside, immediate support is seen at 1.3716 (38.2 % fib), a break below could take the pair towards 1.3658 (50 % fib).
USD/JPY: The U.S. dollar steadied against yen against on Wednesday after the Federal Reserve left interest rates unchanged and indicated it is still leaning toward eventual rate cuts. The U.S. central bank on Wednesday held interest rates steady and signaled it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings and suggested a possible stall in the movement towards more balance in the economy.A U.S. Labor Department report on Wednesday, meanwhile, showed that U.S. job openings fell to a three-year low in March, while the number of people quitting their jobs declined. The next major economic indicator will be Friday's jobs report for April, which is expected to show that employers added 243,000 jobs during the month. Strong resistance can be seen at 157.00 (Psychological level), an upside break can trigger rise towards 158.48(23.6%fib).On the downside, immediate support is seen at 154.30(50% fib), a break below could take the pair towards 153.11(May 1st low).
Equities Recap
U.S. stocks closed mixed on Wednesday after the Federal Reserve left its key interest rate unchanged, as expected, and indicated that while its next move will likely be a rate cut, continued progress on inflation is not assured.
Dow Jones closed up by 0.23% percent, S&P 500 closed down by 0.34% percent, Nasdaq settled down by 0.33% percent.
Commodities Recap
Gold prices surged above the $2,300 mark on Wednesday following the Federal Reserve's decision to hold interest rates steady and signal a slower pace of balance sheet reduction.
Oil prices fell about 3% to a seven-week low on Wednesday on a surprise build in U.S. crude stocks, the prospect of a Middle East ceasefire agreement and as hopes faded for near-term U.S. interest rate cuts that could boost oil demand.
Brent futures for July delivery fell $2.89, or 3.4%, from where the July contract closed on Tuesday to settle at $83.44 a barrel on Wednesday. U.S. West Texas Intermediate (WTI) crude fell $2.93, or 3.6%, to settle at $79.00 a barrel.
