Market Roundup
•US Mar Wholesale Trade Sales (MoM) -1.3% ,2.3% previous
•US Mar Wholesale Inventories (MoM) -0.4% , -0.4% forecast,0.5% previous
•US Crude Oil Inventories -1.362M, -1.430M forecast,7.265M previous
•US EIA Refinery Crude Runs (WoW) 0.307M,-0.230M previous
•US Heating Oil Stockpiles 0.285M, -0.179M previous
•US Crude Oil Imports -0.353M , 1.536M previous
Looking Ahead Economic Data(GMT)
••23:30 Japan Mar Overall wage income of employees 1.8% previous
•23:30 Japan Mar Overtime Pay (YoY) -1.00% previous
•23:30 Japan Mar Average Cash Earnings (YoY) 1.5% forecast, 2.0% previous
•23:30 Japan Foreign Investments in Japanese Stocks -492.4B previous
•23:30 Japan Foreign Bonds Buying 648.1B previous
•01:30 Australia Private House Approvals 3.8% forecast,10.7% previous
•01:30 Australia Building Approvals (MoM) 1.9% forecast, -1.9% previous
•03:00 China Trade Balance (USD) 81.40B forecast, 58.55B previous
•03:00 China Exports (YoY) 1.0% forecast, -7.5% previous
•03:00 China Imports (YoY) 5.4% forecast, -1.9% previous
•05:00 Japan Mar Coincident Indicator (MoM) -0.7% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro eased on Wednesday as dollar climbed as investors continued to bet on the U.S. economy outperforming its European pees. Investors are focused on the pace and timing of Fed rate cuts. The latest data showing weaker-than-expected U.S. jobs creation, together with an easing bias from the U.S. central bank, have cemented expectations that rates will likely be lower by year-end. In the meantime, European Central Bank has signalled its intention to cut in June, assuming the data points in the right direction, and the BoE is gradually smoothing the way to its first cut.The dollar was last up 0.1% at 105.53 against a basket of currencies , above last week's one-month low. The euro was down 0.02% at $1.075. Immediate resistance can be seen at 1.0810(38.2% fib), an upside break can trigger rise towards 1.0888(23.650% fib).On the downside, immediate support is seen at 1.0740 (Daily low), a break below could take the pair towards 1.0723(April 2nd low).
GBP/USD: The pound eased on Wednesday ahead of a Bank of England decision on interest rates at which analysts expect the central bank to telegraph when investors can expect borrowing costs to begin to decline. After the BoE's most recent policy meeting six weeks ago, the expectation was for three 25-basis-point cuts. But since then, the data has shown Britain's economy continues to chug along, wage growth - a focal point for the central bank is moderating, though only slowly, and overall inflation is gradually declining towards the 2% target.Sterling was down 0.13% on the day at $1.2493. The pound also slipped against the euro, which gained 0.1% on the day to trade at 86.06 pence . Immediate resistance can be seen at 1.2507 (38.2%fib), an upside break can trigger rise towards 1.2567(23.6 % fib).On the downside, immediate support is seen at 1.2469 (50% fib), a break below could take the pair towards 1.2433 ( 61.8% fib).
USD/CAD: The Canadian dollar was little against its U.S. counterpart on Wednesday as traders anticipated significant data releases and listened for insights from Federal Reserve officials. Bank of Canada (BoC) Governor Tiff Macklem is scheduled to present the BoC's Financial System Review in Ottawa on Thursday. Money markets see a roughly two-thirds chance the Canadian central bank would begin an interest rate-cutting campaign at its next policy decision on June 5, while the Fed is expected to remain on hold until September . Canada's employment report for April, due on Friday, could offer clues on the strength of the domestic economy.. The Canadian dollar was trading little changed at 1.3727 to the greenback.Immediate resistance can be seen at 1.4014 (5 DMA), an upside break can trigger rise towards 1.4170 (Daily high).On the downside, immediate support is seen at 1.4000 (Psychological level), a break below could take the pair towards 1.3835 (21 DMA).
USD/JPY: The U.S. dollar strengthened on Wednesday as yen weakened for a third day, keeping investors wary of the risk of intervention from Tokyo. The yen remained front of mind for currency traders, weakening for a third day and prompting Japanese officials to issue a stronger warning over the impact of the weak currency on the economy.Traders believe Japanese authorities spent some $60 billion last week on propping up the yen after it hit its weakest in 34-years against the dollar around 160 yen.Analysts have said any intervention from Tokyo would only offer temporary respite for the yen, given the wide gap between interest rates in the U.S. and Japan. Strong resistance can be seen at 156.29 (23.6%fib), an upside break can trigger rise towards 157.00(Psychological level).On the downside, immediate support is seen at 154.38(38.2% fib), a break below could take the pair towards 152.86(50% fib).
Equities Recap
Europe's main index ended Wednesday at a record high as investors cheered strong earnings from the likes of beer maker Anheuser-Busch Inbev and Germany's Siemens Energy, while mulling the possible timeline of major central bank rate cuts.
UK's benchmark FTSE 100 closed up by 0.49 percent, Germany's Dax ended up by 0.31 percent, France’s CAC finished the day up by 0.69 percent.
The Dow Jones Industrial Average tracked higher on Wednesday, on course for its sixth straight session of gains as investors kept betting on supportive U.S. monetary policy.
At (18:51 GMT) Dow Jones was last up by 0.37% percent, S&P 500 was last down by 0.02% percent, Nasdaq was last down by 0.21% percent.
Commodities Recap
Gold steadied on Wednesday while investors awaited U.S. data for clues on potential rate cuts by the Federal Reserve, though a slight uptick in the dollar limited any upsides.
Spot gold was little changed at $2,315.19 per ounce by 11:07 a.m. ET (1507 GMT). U.S. gold futures also held steady at $2,323.30.
Oil prices edged higher on Wednesday after U.S. oil storage data showed a larger-than-expected draw in crude stockpiles as refiners ramped up output ahead of the summer driving season.
Brent crude oil futures increased 31 cents, or 0.37%, to $83.47 a barrel by 2 p.m. EDT (1800 GMT). U.S. West Texas Intermediate crude futures rose 50 cents, or 0.64%, to $78.88 a barrel.
