Market Roundup
• US Core PCE Prices (Q1) 1.80%, 1.40% forecast , 1.30% previous
• US GDP (QoQ) (Q1) -4.8%, -4.0% forecast, 2.1% previous
• US GDP Price Index (QoQ) (Q1) 1.4%,1.2% forecast, 1.4% previous
• US GDP Sales (Q1) -4.3%, 2.1% forecast,3.1% previous
• US PCE Prices (Q1) 1.3%, 1.4% previous
• Canada Feb Foreign Securities Purchases 20.61B, 17.01B previous
• Canada Feb Foreign Securities Purchases by Canadians 6.14B, -9.10B previous
• US March Pending Home Sales (MoM) -20.8%, -10.0% forecast, 2.4% previous
• US March Pending Home Sales Index 88.2, 111.5 previous
• US Crude Oil Inventories 8.991M, 10.619M forecast, 15.022M previous
• US Fed Interest Rate Decision 0.25% forecast,0.25% previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan March Industrial Production (MoM) -5.2% forecast,-0.3% previous
• 23:50 Japan April Industrial Production forecast 1m ahead (MoM) -5.3% previous
•23:50 Japan May Industrial Production forecast 2m ahead (MoM) 7.5% previous
• 23:50 Japan March Retail Sales (YoY) -4.7% forecast , 1.7% previous
•01:00 Chinese April Composite PMI 53.0 previous
•01:00 Chinese April Manufacturing PMI 51.0,52.0 previous
•01:00 Chinese April Non-Manufacturing PMI 52.3 previous
• 01:00 New Zealand April ANZ Business Confidence -63.5 previous
• 01:00 New Zealand April NBNZ Own Activity -26.7% previous
Fxbeat
EUR/USD: The euro edged higher against dollar on Wednesday as firmer stock markets prompted investors to seek higher yielding currencies before the outcome of a U.S. Federal Reserve meeting later in the day. The highlight of the day will be the outcome of the U.S. Federal Reserve meeting where investors will be watching for clues on future policy after it responded to the economic devastation of COVID-19 by slashing rates, buying bonds and backstopping credit markets. Immediate resistance can be seen at 1.0865 (21 DMA), an upside break can trigger rise towards 1.0953 (50 DMA).On the downside, immediate support is seen at 1.0812 (5 DMA), a break below could take the pair towards 1.0763 DMA).
GBP/USD: The pound rose against the dollar on Wednesday as early moves to re-open economies around the world boosted risk appetite, causing the safe-haven dollar to lose ground. France and Spain set out their plans to ease lockdown measures on Tuesday after Italy announced earlier in the week how it would re-open its economy. Sterling rose 0.2% against the weaker dollar, at $1.2443 . As the euro also strengthened versus the dollar, the pound was down around 0.3% versus the euro at 87.335 pence. Immediate resistance can be seen at 1.2484 (Daily high), an upside break can trigger rise towards 1.2605 (Higher BB).On the downside, immediate support is seen at 1.2384 (9 DMA), a break below could take the pair towards 1.2202 (Lower BB).
USD/CAD: The Canadian dollar strengthened to a two-week high against its U.S. counterpart as oil rallied and parts of the United States, Europe and Australia gradually ease restrictions to help contain the coronavirus outbreak. Global market shares rose, with optimism over economies easing coronavirus lockdowns and oil prices clawing back ground leavened by caution over corporate earnings. (1755 GMT), the Canadian dollar was trading 0.5% higher at 1.3929 to the greenback . The currency touched its strongest intraday level since April 15 at 1.3918. Immediate resistance can be seen at 1.3995 (38.2% fib), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3886 (23.6% fib), a break below could take the pair towards 1.3856 (Lower Bollinger Band).
USD/JPY: The dollar declined against the Japanese yen on Wednesday, as investors leaned toward safe haven and riskier asssets. Investors’ preferred euro, swiss franc, pound and yen over dollar. Market participants remained wary on the dollar ahead of advanced estimates for first-quarter U.S. economic growth and the Federal Reserve's policy decision. Strong resistance can be seen at 107.12 (5 DMA), an upside break can trigger rise towards 107.44(11 DMA).On the downside, immediate support is seen at 106.40 (Lower BB), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares slipped on Wednesday as a slide in healthcare stocks outweighed upbeat earnings outlook from German automakers and sensor specialist AMS as well as a bounce in oil prices.
UK's benchmark FTSE 100 closed down by 0.63 percent, Germany's Dax ended down by 0.46 percent, France’s CAC finished the day down by 0.02 percent.
U.S. stocks jumped to seven-week highs on Wednesday as Gilead Sciences gave an encouraging update on a potential COVID-19 treatment and upbeat earnings from Google-parent Alphabet boosted the so-called market-leading FAANG stocks.
At ( GMT 18:05) Dow Jones was up by 2.33 percent, S&P 500 was down 2.71 percent, Nasdaq was up by 3.48 percent.
Treasuries Recap
U.S. Treasury yields were lower on Wednesday as the market awaited the end of the Federal Reserve's two-day meeting and the central bank's latest take on rescuing the sinking economy.
The benchmark 10-year yield was last down 1.5 basis points at 0.5954%.
Commodities Recap
Gold fell on Wednesday as optimism around the easing of coronavirus-led lockdowns and hopes of a potential drug propped up risk assets, while investors awaited the U.S. Federal Reserve’s monetary policy statement later in the day.
Spot gold fell 0.3% to $1,702.38 per ounce at 11:40 a.m. EDT (1540 GMT), having fallen for three previous sessions. U.S. gold futures were 0.4% lower at $1,716.10.
Oil prices surged on Wednesday after U.S. crude stockpiles grew less than expected and gasoline posted a surprise draw, adding to optimism for an improvement in demand as some European countries and U.S. cities move to ease coronavirus lockdowns.
Brent crude futures were up $2.07, or 10%, at $22.54 a barrel by 11:30 a.m. EDT (1530 GMT). U.S. West Texas Intermediate (WTI) crude futures soared $3.80, or 31%, to $16.10 a barrel following a plunge into negative territory last week.
