Market Roundup
• French CPI (MoM) -0.1%,0.0% forecast, 0.0% previous
• French CPI (YoY) 0.7%,0.6% forecast, 1.4% previous
• French March HICP (MoM) 0.1%,0.0% forecast , 0.0% previous
• French March HICP (YoY) 0.8%, 0.7% forecast, 1.6% previous
• Spanish March CPI (MoM) -0.4%,-0.3% forecast, -0.1% previous
• Spanish March CPI (YoY) 0.0% , 0.1% forecast, 0.7% previous
• Spanish March HICP (YoY) 0.1%,0.2% forecast, 0.9% previous
• Sweden March CPI (YoY) 0.6%,0.6% forecast, 1.0% previous
• Sweden March CPI (MoM) -0.2%,-0.3% forecast, 0.5% previous
• Italian March CPI (YoY) 0.1%,0.1% forecast, 0.3% previous
• Italian March CPI (MoM) 0.1%, 0.1% forecast, -0.1% previous
• Italian March HICP (YoY) 0.1%,0.1% forecast, 0.2% previous
• Italian March HICP (MoM) 2.2%, 2.2% forecast , -0.5% previous
Looking Ahead - Economic Data (GMT)
• 12:30 US March Core Retail Sales (MoM) -4.8% forecast, -0.4% previous
• 12:30 US April NY Empire State Manufacturing Index -35.00 forecast, -21.50 previous
• 12:30 US Retail Control (MoM) -2.0% forecast , 0.4% previous
• 12:30 US March Retail Sales (MoM) -8.0% forecast, -0.5% previous
• 13:15 US March Capacity Utilization Rate 73.8% forecast, 77.0% previous
• 13:15 US March Industrial Production (YoY) 0.04% previous
• 13:15 US March Industrial Production (MoM) -4.0% forecast, 0.6% previous
• 14:00 US Feb Business Inventories (MoM) -0.4% forecast, -0.1% previous
• 14:00 US April NAHB Housing Market Index 55 forecast, 72 previous
• 14:00 US Feb Retail Inventories Ex Auto 0.0% previous
• 14:00 Canada BoC Interest Rate Decision 0.25% forecast, 0.25% previous
• 14:00 US Crude Oil Inventories 11.676M forecast, 15.177M previous
Looking Ahead - Events, Other Releases (GMT)
• 14:00 Canada BoC Monetary Policy Report
• 14:00 Canada BoC Rate Statement
Fxbeat
EUR/USD: The euro edged lower against dollar on Wednesday as euro weakened due to disappointment with the Eurogroup’s coronavirus package. Euro zone finance ministers agreed a half-a-trillion euro plan to support coronavirus-hit economies last week. However, to the disappointment of several states led by Italy, the deal did not mention using joint debt to finance the economic recovery. The euro was last trading 0.75 % lower to $1.0897 .Immediate resistance can be seen at 1.0971 (50 DMA), an upside break can trigger rise towards 1.1032 (100 DMA).On the downside, immediate support is seen at 1.0898 (11 DMA), a break below could take the pair towards 1.0882 (9 EMA).
GBP/USD: Sterling declined against dollar on Wednesday, after a dire global economic forecast from the International Monetary Fund diminished risk appetite broadly, boosting the dollar. The global economy is expected to shrink by 3.0% during 2020 in a coronavirus-driven collapse of activity that will mark the steepest downturn since the Great Depression of the 1930s, the IMF said. A weakening global economy enhances the safe-haven appeal of the U.S. dollar as it is the major currency in global trade and the predominant medium of exchange in world markets. Immediate resistance can be seen at 1.2513 (5DMA), an upside break can trigger rise towards 1.2572 (50 DMA).On the downside, immediate support is seen at 1.2371 (9 DMA), a break below could take the pair towards 1.2349 (30 DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday on growing concerns that the economic damage to the global economy from the coronavirus pandemic will be long and protracted, boosting the safe-haven appeal of the greenback. The U.S. currency has weakened in the previous four consecutive sessions on cautious optimism that virus-induced fatalities in the world may be approaching a peak. Immediate resistance can be seen at 0.9666 (50 DMA), an upside break can trigger rise towards 0.9725 (100 DMA).On the downside, immediate support is seen at 0.9617 (30 DMA), a break below could take the pair towards 0.9610 (11 DMA).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday amid growing concerns that the damage to the global economy from the coronavirus pandemic will be long and protracted, boosting the safe-haven appeal of the greenback. The U.S. dollar had weakened in the previous four consecutive sessions on cautious optimism that lockdowns were slowing the spread of the virus. Fresh economic data from the U.S. later on Wednesday is expected to show a steep fall in retail sales, as well as hits to manufacturing and industrial production. This will be the first set of economic data outside U.S. jobless claims. Strong resistance can be seen at 108.50 (50 DMA), an upside break can trigger rise towards 108.91 (100 DMA).On the downside, immediate support is seen at 106.89 (Daily low), a break below could take the pair towards 106.30 (lower BB).
Equities Recap
European shares headed lower on Wednesday after a five-day rally, with investors turning to the first-quarter earnings season to gauge the extent of the business damage from the coronavirus pandemic.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading down at 2.67 percent, Germany's Dax was down by 2.61 percent, France’s CAC finished was down by 2.42 percent.
Commodities Recap
Gold falls 1%Gold slipped 1% on Wednesday as the dollar strengthened and as some investors locked in profits from a surge in prices this month, but mounting fears of a global recession kept bullion firm above $1,700 per ounce.
Spot gold was down 0.8% at $1,713.62 per ounce, as of 0940 GMT. In the previous session, it jumped as much as 1.9% to its highest since Nov. 2012 at $1,746.50.U.S. gold futures dropped 1.7% to $1,738.40.
Oil fell 4% towards $28 a barrel on Wednesday, pressured by reports of persistent oversupply and collapsing demand due to global coronavirus-related lockdowns and a lack of coordinated oil purchases for strategic storage.
The International Energy Agency (IEA) on Wednesday forecast a 29 million barrel per day (bpd) dive in April oil demand to levels not seen in 25 years and said no output cut could fully offset the near-term falls facing the market.
Brent crude fell $1.18, or 4%, to $28.42 a barrel at 1134 GMT, giving up earlier gains. U.S. West Texas Intermediate crude slid 43 cents, or 2.1%, to $19.68.
Treasury Recap
Italian bonds remained under pressure on Wednesday due to disappointment with the Eurogroup’s coronavirus package and the announcement of changes to the country’s funding programme that increased the prospect of Rome adding to its debt pile.
Italy’s 2-year bond yield was last up 11 basis points at 0.95% after rising nearly 20 bps on Tuesday, while 10-year yields were up 4 basis points at 1.83%
