Market Roundup
•US Apr Retail Control (MoM) -0.3%,1.1% previous
•US Apr Retail Sales Ex Gas/Autos (MoM) -0.3% ,1.0% previous
•US Apr Real Earnings (MoM) -0.4%, 0.3% previous
•US Apr Core Retail Sales (MoM) 00.2%, .2% forecast,1.1% previous
•US Apr Retail Sales (MoM) 0.0%,0.4% forecast,0.7% previous
•US Apr Core CPI (YoY) 0.3%,3.6% forecast,3.8% previous
•US Apr Core CPI (MoM) 0.3%,0.3% forecast,0.4% previous
•US May NY Empire State Manufacturing Index -15.60,-9.90 forecast,-14.30 previous
•US Apr CPI Index, n.s.a 313.55, 313.76 forecast,312.33 previous
•US Apr Core CPI Index 317.62,317.73 forecast,316.70 previous
•US Apr CPI, n.s.a (MoM) 0.39%, 0.65% previous
•US Apr CPI Index, s.a 312.21,312.23 previous
•US Apr Retail Sales (YoY) 3.04%, 4.27% previous
•Canada Mar Manufacturing Sales (MoM) -2.1%,-2.4% forecast,0.7% previous
•US May NAHB Housing Market Index 45,51 forecast,51 previous
•US Mar Retail Inventories Ex Auto-0.2%, -0.1% forecast,-0.1% previous
•US Mar Business Inventories (MoM) -0.1%, 0.0% forecast,0.4% previous
•US Crude Oil Inventories -2.508M,-0.400M forecast,-1.362M previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•No significant Events
Currency Summaries
EUR/USD: The euro rose against dollar on Wednesday after U.S. consumer prices in April showed inflation had resumed trending lower in the second quarter, raising hopes the Federal Reserve can deliver an interest rate cut as early as September.Also boosting optimism that the Fed was closer to a rate cut was a reading of U.S. retail sales that was unexpectedly flat last month, as higher gasoline prices pulled spending away from other goods in a sign the consumer was retrenching a bit . Traders are now pricing in about a 74% chance of a U.S. rate cut in September, according to the CME FedWatch Tool, opens new tab. The dollar index , which measures the greenback against a basket of major currencies including the yen and the euro, fell to a one-month low at 104.41, but later pared losses to trade 0.25% lower at 104.77.Immediate resistance can be seen at 1.0902(Higher BB), an upside break can trigger rise towards 1.0934(Higher BB).On the downside, immediate support is seen at 1.0856 (38.2% fib), a break below could take the pair towards 1.0792(50% fib).
GBP/USD: Sterling hit its highest level in almost two weeks as dollar dipped after data suggested rate cut in September. The consumer price index rose 0.3% last month after advancing 0.4% in March and February, the Labor Department's Bureau of Labor Statistics said. In the 12 months through April, the CPI increased 3.4% after climbing 3.5% in March.Economists polled had forecast the CPI gaining 0.4% on the month and advancing 3.4% year-on-year.The unchanged reading in retail sales last month followed a slightly downwardly revised 0.6% increase in March, the Commerce Department's Census Bureau said on Wednesday. Retail sales were previously reported to have risen 0.7% in March.. Immediate resistance can be seen at 1.2720(23.6%fib), an upside break can trigger rise towards 1.2725 (Higher BB).On the downside, immediate support is seen at 1.2632(38.2% fib), a break below could take the pair towards 1.2567 ( 50% fib).
USD/CAD: The Canadian dollar strengthened to a five-week high against its U.S. counterpart on Wednesday as investors welcomed U.S. inflation data that could keep the door open to Federal Reserve interest rate cuts this year. U.S. dollar , opens new tab fell against a basket of major currencies as U.S. consumer prices increased less than expected in April.Canada is a major producer of commodities, including oil, so the currency tends to be sensitive to shifts in investor sentiment.The price of oil settled 0.8% higher at $78.63 a barrel, while the Canadian dollar was trading 0.3% higher at 1.36 per U.S. dollar, or 73.53 U.S. cents. The currency touched its strongest intraday level since April 10 at 1.3592. .Immediate resistance can be seen at 1.3631(38.2%fib), an upside break can trigger rise towards 1.3682(23.6%fib).On the downside, immediate support is seen at 1.3558(50%fib), a break below could take the pair towards 1.3550 (61.8%fib).
USD/JPY: The U.S. dollar declined against yen on Wednesday following a smaller-than-expected uptick in consumer inflation, which fueled investors' optimism for interest rate cuts by the Federal Reserve.U.S. consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations the U.S. Federal Reserve (Fed) will cut interest rates in September.With the Fed expected to cut interest rates later this year, the U.S. dollar , opens new tab fell to a five-week low against a basket of other currencies. Other data released on Wednesday showed U.S. retail sales were unexpectedly flat in April as higher gasoline prices pulled expenditure away from other goods, indicating that consumer spending was losing momentum. Strong resistance can be seen at 155.24 (38.2%fib), an upside break can trigger rise towards 156.51(Daily high).On the downside, immediate support is seen at 153.10(50% fib), a break below could take the pair towards 152.78(Lower BB).
Equities Recap
Europe's main share index notched a record high on Wednesday, as investors cheered robust earnings from the likes of UK's Experian and Germany's Commerzbank, while rate-sensitive stocks got a boost after a softer-than-expected U.S. inflation print.
UK's benchmark FTSE 100 closed up by 0.22 percent, Germany's Dax ended up by 0.85 percent, France’s CAC finished the day up by 0.17 percent.
Wall Street's three major indexes notched record closes on Wednesday with the benchmark S&P 500 , opens new tab and the Nasdaq , opens new tab both advancing more than 1%, after a smaller-than-expected rise in consumer inflation bolstered investors' hopes for interest rate cuts by the Federal Reserve.
Dow Jones closed up by 0.88 %percent, S&P 500 closed up by 1.15% percent, Nasdaq settled up by 1.40% percent.
Commodities Recap
Oil prices rose nearly 1% on Wednesday from a two-month low in the prior session as the market balanced bullish U.S. economic and crude storage data against the International Energy Agency's (IEA) forecast for weaker global oil demand growth.
Brent futures rose 37 cents, or 0.5%, to settle at $82.75 a barrel, while U.S. West Texas Intermediate crude (WTI) gained 61 cents, or 0.8%, to end at $78.63.
Gold climbed to near one-month high on Wednesday, aided by a weaker dollar and lower Treasury yields after data showed U.S. consumer prices rose less than expected in April, boosting chances of the Federal Reserve cutting interest rates.
Spot gold climbed over 1% at $2,386.63 per ounce by 1816 GMT. U.S. gold futures for June delivery settled 1.5% higher at 2394.90 per ounce.
