Market Roundup
• German March Import Price Index (MoM) -3.5%,-2.5% forecast, -0.9% previous
• German March Import Price Index (YoY) -5.5%,-4.0% forecast, -2.0% previous
• Spanish March Retail Sales (YoY) -14.1%,1.8% previous
• Italian March PPI (MoM) -1.0%, -0.5% previous
• Italian March PPI (YoY) -3.6%,-2.7% previous
• EU March M3 Money Supply (YoY) 7.5%,5.5% forecast, 5.5% previous
• EU Loans to Non-Financial Corporations 5.4%,3.0% previous
• EU Private Sector Loans (YoY) 3.4%,3.7% previous
• Portuguese April Business Confidence -0.7, 1.8 previous
• Portuguese April Consumer Confidence -21.00, -9.90 previous
• EU Consumer April Confidence -22.7, -22.7 forecast, -11.6 previous
• EU April Selling Price Expectations -7.9, -0.3 previous
• EU April Industrial Sentiment -30.4, -25.7 forecast, -11.2 previous
• Belgium April CPI (YoY) 0.57% , 0.62% previous
• Belgium April CPI (MoM) 0.16%,0.16% previous
Looking Ahead - Economic Data (GMT)
• 12:30 US Core PCE Prices (Q1) 1.40% forecast , 1.30% previous
• 12:30 US GDP (QoQ) (Q1) -4.0% forecast, 2.1% previous
• 12:30 US GDP Price Index (QoQ) (Q1) 1.2% forecast, 1.4% previous
• 12:30 US GDP Sales (Q1) 2.1% forecast,3.1% previous
• 12:30 US PCE Prices (Q1) 1.4% previous
• 12:30 Canada Feb Foreign Securities Purchases 17.01B previous
• 12:30 Canada Feb Foreign Securities Purchases by Canadians -9.10B previous
• 14:00 US March Pending Home Sales (MoM) -10.0% forecast, 2.4% previous
• 14:00 US March Pending Home Sales Index 111.5 previous
• 14:30 US Crude Oil Inventories 10.619M forecast, 15.022M previous
• 18:00 US Fed Interest Rate Decision 0.25% forecast,0.25% previous
Looking Ahead - Events, Other Releases (GMT)
• 18:00 US FOMC Statement
• 18:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro edged higher against dollar on Wednesday as firmer stock markets prompted investors to seek higher yielding currencies before the outcome of a U.S. Federal Reserve meeting later in the day. The highlight of the day will be the outcome of the U.S. Federal Reserve meeting where investors will be watching for clues on future policy after it responded to the economic devastation of COVID-19 by slashing rates, buying bonds and backstopping credit markets. Immediate resistance can be seen at 1.0865 (21 DMA), an upside break can trigger rise towards 1.0953 (50 DMA).On the downside, immediate support is seen at 1.0812 (5 DMA), a break below could take the pair towards 1.0763 DMA).
GBP/USD: The pound rose against the dollar on Wednesday as early moves to re-open economies around the world boosted risk appetite, causing the safe-haven dollar to lose ground. France and Spain set out their plans to ease lockdown measures on Tuesday after Italy announced earlier in the week how it would re-open its economy. Sterling rose 0.2% against the weaker dollar, at $1.2443 . As the euro also strengthened versus the dollar, the pound was down around 0.3% versus the euro at 87.335 pence. Immediate resistance can be seen at 1.2484 (Daily high), an upside break can trigger rise towards 1.2605 (Higher BB).On the downside, immediate support is seen at 1.2384 (9 DMA), a break below could take the pair towards 1.2202 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday, as investors bet on central bank easing to remain even as partial lifting of coronavirus lockdowns grew. Currency markets were largely in wait-and-watch mode with limited moves before the outcome of a U.S. Federal Reserve meeting later in the day, where policymakers are seen keeping their promise to do whatever it takes to support the world’s largest economy. Immediate resistance can be seen at 0.9750 (200 DMA), an upside break can trigger rise towards 0.9794 (200 DMA).On the downside, immediate support is seen at 0.9722 (9 DMA), a break below could take the pair towards 0.9699 (100 DMA).
USD/JPY: The dollar declined against the Japanese yen on Wednesday, as investors leaned toward safe haven and riskier asssets. Investors’ preferred euro, swiss franc, pound and yen over dollar. Market participants remained wary on the dollar ahead of advanced estimates for first-quarter U.S. economic growth and the Federal Reserve's policy decision. Strong resistance can be seen at 107.12 (5 DMA), an upside break can trigger rise towards 107.44(11 DMA).On the downside, immediate support is seen at 106.40 (Lower BB), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares slipped on Wednesday as a slide in healthcare stocks outweighed upbeat earnings outlook from German automakers and sensor specialist AMS as well as a bounce in oil prices.
At (GMT 12:00),UK's benchmark FTSE 100 was last trading up at 0.77 percent, Germany's Dax was up by 0.20 percent, France’s CAC finished was down by 0.18 percent.
Commodities Recap
Gold prices inched higher on Wednesday as the dollar weakened amid plans to ease major economies out of coronavirus lockdowns, while investors awaited any forward guidance from the U.S. Federal Reserve’s policy statement due later in the day.
Spot gold rose 0.1% to $1,708.53 per ounce by 0126 GMT. U.S. gold futures climbed 0.2% to $1,725.50 per ounce.
Treasuries Recap
Italy’s government bond yields rose on Wednesday after ratings agency Fitch downgraded the country’s credit rating to one notch above junk.
Italy’s bond yields rose, with the two-year yield up as much as 12 basis points. It was last up 7 bps at 0.69%. The 10-year yield rose as much as 10 bps to 1.83% and was last up 6 bps.
