Market Roundup:
• US Feb Goods Orders Non Defense Ex Air (MoM) -0.8%, 0.5% forecast, 0.4% previous
• US Feb Core Durable Goods Orders (MoM) -0.9%, 0.6% forecast,1.3% previous
• US Feb Durables Excluding Defense (MoM) -0.7%, 2.3% previous
• US Feb Durable Goods Orders (MoM) -1.1%, 0.8% forecast,3.4% previous
•US March Manufacturing PMI 59.0,59.3 forecast, 58.6 previous
•US Markit Composite PMI 59.1,59.5 previous
•US March Services PMI 60.0, 60.0 forecast, 59.8 previous
• US Crude Oil Inventories 1.912M,-0.272M forecast, 2.396M previous
Looking Ahead - Economic Data (GMT)
• 23:30 Japan Foreign Bonds Buying-417.0B previous
• 23:50 Japan Foreign Investments in Japanese Stocks
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro dipped against dollar on Wednesday as sign of growing unease over the euro zone’s economic outlook amid tighter restrictions to contain a fresh wave of COVID-19. Germany extended its lockdown to April 18. A U.S. health agency said the AstraZeneca Plc vaccine developed with Oxford University may have included outdated information in its data, further fueling investor concerns over the economic recovery. The euro edged toward a four-month trough below $1.18355 trading as low as $1.1808 .Immediate resistance can be seen at 1.1885 (5DMA), an upside break can trigger rise towards 1.1925 (38.2%fib).On the downside, immediate support is seen at 1.1806(23.6%fib), a break below could take the pair towards 1.1779 (Lower BB).
GBP/USD: Sterling fell on Wednesday after the European Union raised the prospect of blocking COVID-19 vaccine shipments to countries, such as Britain, with higher inoculation rates and to those not exporting doses. Bets that Britain’s rapid vaccination drive would lead to a faster reopening of its economy propelled the pound above $1.42 in February. But a firmer dollar on rising bond yields and the risk of the EU banning COVID-19 vaccine exports to Britain, which relies heavily on imports for its inoculation campaign, knocked sterling from its perch as the best-performing G10 currency. Immediate resistance can be seen at 1.3773(50%fib), an upside break can trigger rise towards 1.3823 (5DMA).On the downside, immediate support is seen at 1.3649(38.2 %fib), a break below could take the pair towards 1.3600(Psychological level).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday as oil rallied, helping the currency pare some recent losses that pushed it to a near two-week low earlier in the session.Oil prices jumped about 6% on Wednesday after a ship ran aground in the Suez Canal, and worries that the incident could tie up crude shipments gave prices a boost after a slide over the past week. The Canadian dollar was trading up about 0.2% at 1.2562 to the greenback, or 79.61 U.S. cents. The currency earlier touched its weakest level since March 11 at $1.2608. Immediate resistance can be seen at 1.2595 (30DMA), an upside break can trigger rise towards 1.2677 (50%fib).On the downside, immediate support is seen at 1.2541 (5 DMA), a break below could take the pair towards 1.2517 (23.6%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as the U.S. Treasury Secretary and Fed chair indicated to Congress that they had confidence in the U.S. economy. The dollar index, which touched a four-month high earlier in the session, was supported by safe-haven flows even as some investors fretted over potential U.S. tax hikes. The dollar rose against a basket of currencies to 92.51. Yields on the 10-year Treasury fell a bit to 1.612% but remained near recent highs after an auction of five-year notes.Strong resistance can be seen at 108.76 (5DMA), an upside break can trigger rise towards 109.20(23.6%fib ).On the downside, immediate support is seen at 108.31(38.2%fib), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European stocks were subdued on Wednesday, as concerns about new lockdown measures overshadowed a surprise return to economic growth for the euro zone in March.
UK's benchmark FTSE 100 closed up by 0.20 percent, Germany's Dax ended down by 0.35 percent, France’s CAC finished the day up by 0.03 percent.
U.S. stock indexes dropped more than 2% on Thursday as the swift spread of the coronavirus in the United States led California to declare an emergency, while airline stocks were hammered by crippled travel demand.
Dow Jones closed down by 0.01 percent, S&P 500 closed lower by 0.53 percent, Nasdaq was settled down by 2.01 percent.
Treasuries Recap
U.S. Treasury yields dipped on Wednesday after the Treasury saw average demand for an auction of five-year notes, with the market appearing to stabilize after benchmark yields reached one-year highs last week.
Five-year note yields were last at 0.814%, down from 0.827% before the auction.
Benchmark 10-year note yields fell to 1.614% , but held above one-week lows of 1.589% reached overnight.
Commodities Recap
Gold gained on Wednesday, taking an uptick in U.S. Treasury yields and the dollar in stride, as the safe-haven metal drew support from Federal Reserve Chair Jerome Powell's repeated calls to keep low-interest rates pinned near zero.
Spot gold rose 0.4% to $1,734.36 per ounce by 1:54 p.m. EDT (1754 GMT). U.S. gold futures settled 0.5% up at $1,733.20.
Oil prices jumped about 6% on Wednesday after a ship ran aground in the Suez Canal, and worries that the incident could tie up crude shipments gave prices a boost after a slide over the last week.
Brent crude settled at $64.41 a barrel, gaining $3.62, or 6%, after tumbling 5.9% the previous day. West Texas Intermediate (WTI) settled at $61.18 a barrel, rising $3.42, or 5.9%, having lost 6.2% on Tuesday.
