Market Roundup
•US March ADP Nonfarm Employment Change 517K, 550K forecast, 117K previous
•Canada Feb RMPI (MoM) 6.6%,5.7% previous
•Canada Feb RMPI (YoY) 17.1%, 6.2% previous
•Canada Jan GDP (MoM) 0.7%, 0.5% forecast, 0.1% previous
•Brazil Feb Budget Surplus -11.800B,-23.950B forecast, 58.400B previous
•Brazil Feb Debt-to-GDP ratio 61.6%,61.8% forecast,61.6% previous
•US March Chicago PMI 66.3,60.7 forecast, 59.5 previous
•US Feb Pending Home Sales Index 110.3,122.8 previous
•US Feb Pending Home Sales (MoM) -10.6%, -2.6% forecast, -2.8% previous
•US Crude Oil Inventories -0.876M,0.107M forecast, 1.912M previous
•US Gasoline Inventories -1.735M,0.730M forecast, 0.203M previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Tankan All Small Industry CAPEX (Q1) -12.5% forecast,-13.9% previous
•23:50 Japan Tankan Small Non-Manufacturing Index (Q1) -14 forecast, -12 previous
•23:50 Japan Tankan Large Manufacturers Index (Q1) -15 forecast, -10 previous
•23:50 Japan Tankan Large Non-Manufacturers Index (Q1) -5 forecast, -5 previous
•23:50 Japan Tankan Big Manufacturing Outlook Index (Q1) 4 forecast ,-8 previous
•23:50 Japan Tankan All Big Industry CAPEX (Q1) 1.4% forecast , -1.2% previous
•00:30 Australia Home Loans (MoM) 12.3% previous
•00:30 Australia Mar Manufacturing PMI 52.0 previous
•00:30 Australia Feb Retail Sales (MoM) -1.1% forecast , 0.5% previous
•00:30 Australia Feb Trade Balance 9.700B forecast , 10.142B previous
•01:45 China March Caixin Manufacturing PMI 51.3 forecast , 50.9 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Wednesday as bets of a faster U.S. economic recovery lifted the dollar. U.S. private employers hired the most workers in six months in March as more Americans got vaccinated against COVID-19 and pushed the economy toward a broader reopening, which is expected to unleash a strong wave of pent-up demand in coming months.The ADP National Employment Report was slightly below economists’ expectations, but the jump in hiring aligned with a recent improvement in labor market conditions. The common currency was last down 0.02% against dollar at 1.1723. Immediate resistance can be seen at 1.1751(50DMA), an upside break can trigger rise towards 1.1817(10DMA).On the downside, immediate support is seen at 1.1721 (23.6%fib), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: Sterling edged higher against the dollar on Wednesday as traders look past economic data in Britain and focused on a planned April re-opening of shops in England. Data showed that Britain’s economy grew faster than previously thought in the final three months of last year, with gross domestic product rising 1.3% from the previous quarter. It still shrank by the most in more than three centuries in 2020. Sterling was 0.4% higher at $1.3792 at 1500 GMT versus the dollar, which rose to multi-month peaks versus other currencies this week amid generous U.S. fiscal stimulus and speedy vaccinations. Immediate resistance can be seen at 1.3805(38.2%fib), an upside break can trigger rise towards 1.3847(21DMA).On the downside, immediate support is seen at 1.3715 (50% fib), a break below could take the pair towards 1.3621(61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday and was on track to advance for a fourth straight quarter as data showed faster-than-expected growth in the domestic economy. The Canadian economy grew by 0.7% in January, surpassing estimates for 0.5%, largely on increases in wholesale trade and manufacturing, Statistics Canada said. A flash estimate pointed to a 0.5% gain in February. The Canadian dollar was 0.3% higher at 1.2597 to the greenback, or 79.38 U.S. cents, having recovered from its lowest intraday level in nearly three weeks on Tuesday at 1.2646. Immediate resistance can be seen at 1.2577 (30DMA), an upside break can trigger rise towards 1.2643 (50DMA).On the downside, immediate support is seen at 1.2554 (23.6%fib), a break below could take the pair towards 1.2500(Psychological level).
USD/JPY: The dollar rose fresh one year high against the Japanese yen Wednesday as investors bet that massive fiscal stimulus and aggressive vaccinations will help the United States lead a global pandemic recovery. President Joe Biden is set to outline later on Wednesday how he intends to pay for a $3-$4 trillion infrastructure plan, after earlier this week saying 90% of adult Americans would be eligible for vaccination by April 19. The dollar was on track for a third monthly rise against the yen and its biggest since the end of 2016. Strong resistance can be seen at 111.00(Daily high), an upside break can trigger rise towards 111.50 (23.6%fib).On the downside, immediate support is seen at 109.66 (Daily low), a break below could take the pair towards 109.34 (38.2% fib).
Equities Recap
European stocks held steady on Wednesday, trading marginally below all-time highs, while investors maintained a cautious stance after food delivery company Deliveroo’s lacklustre London debut and a slew of corporate earnings.
UK's benchmark FTSE 100 closed down by 1.51 percent, Germany's Dax ended down by 2.56 percent, France’s CAC finished the day down by 2.85 percent.
Technology shares lifted major U.S. stock indexes on Wednesday as investors awaited details on President Joe Biden’s massive infrastructure plan, while Wall Street eyed its fourth straight quarterly gain.
Dow Jones closed down by 0.26% percent, S&P 500 closed down by 0.36 % percent, Nasdaq settled up by 1.55% percent.
Treasuries Recap
U.S. government bond yields rose on Wednesday after U.S. President Joe Biden unveiled a multitrillion dollar infrastructure endeavor.
Commodity Recap
Gold gained over 1% on Wednesday, helped by the dollar’s pullback, but elevated U.S. bond yields still put the metal on course for its biggest quarterly decline in more than four years.
Spot gold rose 1.6% to $1,711.27 per ounce by 1:57 p.m EDT (1757 GMT) after touching its lowest since March 8 at $1,677.61. U.S. gold futures settled up 1.8% at $1,715.60.
Oil prices were down on Wednesday on concerns about the market’s recovery after OPEC and its allies lowered their 2021 demand growth forecast, but a draw in U.S. crude inventories limited the fall.
Brent crude for May, which expires on Wednesday, shed 41 cents, or 0.6%, to $63.73 a barrel at 1:45 p.m. EDT (1745 GMT). The more active Brent contract for June was down $1.10, or 1.75%, at $63.07 a barrel.
U.S. West Texas Intermediate (WTI) crude futures lost 47 cents, or 0.8%, to $60.08 a barrel.
