Market Roundup
•Italian Apr Car Registration (YoY) 3,276.8%, 497.2% previous
•UK Apr CPI (YoY) 1.5%, 1.4% forecast, 0.7% previous
•UK Apr Core RPI (MoM) 1.5%,0.3% previous
•UK Apr CPI (MoM) 0.6%,0.6% forecast, 0.3% previous
•UK Apr Core RPI (YoY) 3.2%, 1.6% previous
•UK Apr Core CPI MoM (MoM) 0.3%,0.4% forecast, 0.4% previous
•UK Apr Core CPI (YoY) 1.3%,1.3% forecast, 1.1% previous
•UK Apr PPI Output (MoM) 0.4%,0.4% forecast, 0.7% previous
•French Apr Car Registration (YoY) 568.8%, 191.7% previous
•Italian Apr Car Registration (MoM) -14.5%, 18.7% previous
•German Apr Car Registration (MoM) -21.4%, 50.4% previous
•German Apr Car Registration (YoY) 90.0%,35.9% previous
•UK Apr Core PPI Output (YoY) 2.5%, 1.7% previous
•UK Apr PPI Input (YoY) 9.9%,9.0% forecast, 5.9% previous
•UK Apr PPI Output (YoY) 3.9%,3.5% forecast, 1.9% previous
•EU Apr CPI (MoM) 0.6%, 0.6% forecast, 0.9% previous
•EU Apr CPI (YoY) 1.6%, 1.6% forecast, 1.3% previous
•EU Apr CPI ex Tobacco (YoY) 1.6%,1.3% previous
•EU Apr Core CPI (MoM) 0.5%,0.6% forecast,1.0% previous
•EU Apr HICP ex Energy & Food (YoY) 0.8%, 0.8% forecast, 0.8% previous
•EU Apr Core CPI (YoY) 0.7%,0.8% forecast, 0.9% previous
•Canada Trimmed CPI (YoY) 2.3%,2.2% previous
•Canada Median CPI (YoY) 2.3% ,2.1% previous
•Canada Apr CPI (MoM) 0.5%,0.4% forecast, 0.5% previous
•Canada Apr Core CPI (YoY) 2.3%, 1.4% previous
•Canada Apr CPI (YoY) 3.4%,3.2% forecast, 2.2% previous
•Canada Apr Core CPI (MoM) 0.5%, 0.3% previous
Looking Ahead - Economic Data (GMT)
•14:30 US Gasoline Inventories -0.886M , 0.378M previous
•14:30 US Crude Oil Inventories 1.623M forecast, -0.427M previous
•16:30 Russia Apr Industrial Production (YoY) 6.5% forecast, 1.1% previous
Looking Ahead - Economic events and other releases (GMT)
•14:00 US FOMC Member Quarles Speaks
•14:00 German Buba Vice President Buch Speaks
•15:45 US FOMC Member Bostic Speaks
•18:00 US FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro edged lower on Wednesday as investors shied away from assets seen as vulnerable to any removal of monetary stimulus. Investors were cautious as focus was locked on the U.S. Federal Reserve’s release later on Wednesday of the minutes of its April meeting, which will be watched for any indication about monetary policy in the United States. The dollar firmed, moving away from its lowest levels of the year against major currencies. The euro pulled back from a near three-month high of $1.2244. Immediate resistance can be seen at 1.2241(23.6%fib), an upside break can trigger rise towards 1.2300(Psychological level).On the downside, immediate support is seen at 1.2165 (38.2%fib), a break below could take the pair towards 1.2132(5DMA).
GBP/USD: Sterling traded flat to the on Wednesday, after data showed a doubling of consumer price inflation in Britain in April. British consumer prices rose by 1.5% in April, the Office for National Statistics said, following a 0.7% rise in March. Economists had pointed to an increase of 1.4%. Sterling was flat against the dollar by 0837 GMT, trading flat to a shade lower at $1.4180, just shy of the $1.42 mark crossed on Tuesday. Against the euro, the pound was flat at 86.13 pence, having earlier hitting its lowest since May 10 against the single currency at 86.33 pence. Immediate resistance can be seen at 1.4220 (23.6%fib), an upside break can trigger rise towards 1.4244 (Higher BB).On the downside, immediate support is seen at 1.4129 (Daily low), a break below could take the pair towards 1.4101 (38.2%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as investors awaited U.S. Federal Reserve minutes later in US session. With data last week showing the fastest increase in U.S. consumer prices in more than a decade, fears are growing that interest rates will be raised sooner than expected despite Federal Reserve policymakers stressing the spike is temporary. The minutes from the Fed’s most recent meeting, due later on Wednesday, are expected to confirm policymakers think a rate hike is still in the distance, but any discordant note or hint on when their position could evolve could have a significant market impact . Immediate resistance can be seen at 0.9019 (5DMA), an upside break can trigger rise towards 0.9051 (38.2%fib).On the downside, immediate support is seen at 0.8967(23.6%fib), a break below could take the pair towards 0.8944(Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as expectations that U.S. interest rates will remain low supported greenback against yen. The minutes from the U.S. Federal Reserve's most recent meeting due later on Wednesday are expected to confirm that policymakers think a rate hike is still in the distance. The U.S. central bank has pledged to keep interest rates low until the economy reaches full employment and Fed officials have repeatedly maintained they expect any rise in inflation to be short-lived. Strong resistance can be seen at 109.24 (38.2%fib), an upside break can trigger rise towards 109.70(23.6%fib).On the downside, immediate support is seen at 108.82 (50%fib), a break below could take the pair towards 108.40(61.8%fib).
Equities Recap
European stocks neared record highs on Tuesday on optimism around several countries easing economic restrictions, falling unemployment rate in the United Kingdom and strong earnings reports from companies.
At (GMT 11:50),UK's benchmark FTSE 100 was last trading up at 0.29 percent, Germany's Dax was up by 0.08 percent, France’s CAC was last up by 0.06 percent.
Commodities Recap
Gold prices eased on Wednesday as the U.S. dollar ticked higher, with investors waiting for the latest round of Federal Reserve policy meeting minutes to gauge its stance on interest rates in the wake of rising inflation concerns.
Having risen for four sessions to its highest since Jan. 29 at $1,874.80 per ounce on Tuesday, spot gold fell 0.2% to $1,864.51 by 1239 GMT. U.S. gold futures dipped 0.1% to $1,865.20.
Oil prices fell for a second day on Wednesday on renewed demand concerns as coronavirus cases in Asia rise and on fears rising inflation might lead the U.S. Federal Reserve to raise interest rates, which could limit economic growth.
Brent crude futures fell $1.4, or 2%, to $67.31 a barrel at 1215 GMT. It settled 1.1% lower on Tuesday after briefly climbing above $70 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures dropped $1.36, or 2%, to $64.13 a barrel, following a 1.2% fall on Tuesday.
