Market Roundup
• Fed leaves interest rates unchanged as U.S. economy motors along
• Fed trims interest rate it pays banks on excess reserves
• Fed's Powell says data not pushing Fed in either direction on policy
• Fed's Powell says a deterioration in inflation expectations could be bad for economy
• US 2 May Fed Funds Target Rate, 2.25-2.5%, 2.25-2.5% f'cast, 2.25-2.5% previous
• US Apr Markit Mfg PMI Final, 52.6, 52.4 previous.
• US Apr ISM Manufacturing PMI, 52.8, 55.0 f'cast, 55.3 previous
• US Apr ISM Mfg Prices Paid, 50.0, 55.1 f'cast, 54.3 previous
• US Apr ISM Manuf Employment Idx, 52.4, 55.8 f'cast, 57.5 previous
• US Mar Construction Spending MM, -0.9%, 0.1% f'cast, 1.0% prev, 0.7% rvsd
• US Apr ADP National Employment, 275k, 180k f'cast, 129k prev, 151k rrevised
• CA Apr Markit Mfg PMI SA, 49.7, 50.5 prev
• U.S., China reported near deal to end some tariffs; talks 'productive'
Looking Ahead - Economic Data (GMT)
• 1 May ( ET 18:45 / GMT 22:45 ) New Zealand March Building Consents, 1.9% previous
• 2 May ( ET 21:00 / GMT 01:00 ) Australia Oct HIA New Home Sales MM SA, -6.1% previous
Looking Ahead - Events, Other Releases
• N/A Norges Bank Deputy Governor Jon Nicolaisen speaks at a seminar in Oslo
• ( ET 04:00 / GMT 08:00) Riksbank's Stefan Ingves, Kerstin af Jochnick, Martin Flodén, Per Jansson, Henry Ohlsson and Cecilia Skingsley participate in the Riksbank Committee on finance in Stockholm
• ( ET 07:00 / GMT11:00) BoE releases inflation report, announces rate decision and publishes the minutes of the meeting, after the rate decision in London
• ( ET13:30 / GMT17:30) ECB's chief economist, Peter Praet, participates in a conference in Vienna
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Wednesday after the Federal Reserve held rates steady as expected, and said strong jobs kept economic outlook balanced. The central bank's statement reflected little change in its outlook for the economy since the last policy meeting , with inflation remaining near its 2 percent target, unemployment falling and risks to the economic outlook appearing to be roughly balanced. At (2041 GMT), the euro was down 0.20 percent at $1.1192, erasing an earlier gains tied partly to strong economic growth data in the euro zone. Immediate resistance can be seen at 1.1274 (50 DMA), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1200 (9 DMA), a break below could take the pair towards 1.1109 (Lower Bollinger Band).
GBP/USD: The pound edged higher against greenback on Wednesday, as investors sensed in comments by Prime Minister Theresa May signs of progress in Brexit talks between the British government and the main opposition party. Sterling neared $1.31 after May said her plan to negotiate a customs arrangement with the EU was similar to that of the Labour Party and called for an end to uncertainty. The British currency has stuck within a range of $1.28-1.30 since Britain pushed its scheduled departure from the European Union back from March until Oct. 31.Immediate resistance can be seen at 1.3104 (50 DMA), an upside break can trigger rise towards 1.3165 (Ichimoku Cloud Top).On the downside, immediate support is seen at 1.3019 (21 DMA), a break below could take the pair towards 1.2974 (5 DMA).
USD/CAD: The Canadian dollar declined against its U.S. counterpart on Wednesday, as Canadian dollar was weighed down by lower oil prices and stronger dollar. The price of oil, one of Canada's major exports, was pressured by an unexpected rise in U.S. crude inventories. Greenback gained across the board after Federal Reserve kept interest rate unchanged as U.S. economy gained ground. At (1953 GMT), the Canadian dollar was trading 0.4% lower at 1.3439 to the greenback, or 74.41 U.S. cents. Immediate resistance can be seen at 1.3425 (9 DMA), an upside break can trigger rise towards 1.3511 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3376 (21 DMA), a break below could take the pair towards 1.3346 (50 DMA).
USD/JPY: The dollar strengthened against Japanese yen on Wednesday, as greenback rose after Federal Reserve held interest rates unchanged. Fed policy makers, as expected, left key short-term lending rates unchanged following a two-day meeting. Fed policymakers said ongoing economic growth, a strong labor market and an eventual rise in inflation were still "the most likely outcomes" as the U.S. expansion nears its 10-year mark.The dollar was 0.47 percent lower versus the Japanese yen at 111.63.. Strong resistance can be seen at 111.35 (50 DMA), an upside break can trigger rise towards 111.78 (11 DMA).On the downside, immediate support is seen at 110.85 (Lower Bollinger Band), a break below could take the pair towards 110.35 (Feb 27th low).
Equities Recap
U.S. stocks declined on Wednesday, as comments from Federal Reserve Chairman Jerome Powell dampened expectations the central bank could move later this year to cut interest rates..
WIn by 0.62 percent, S&P 500 ended down 0.76 percent, Nasdaq finished the day down by 0.58 percent.
Treasuries Recap
U.S. Treasury yields rose on Wednesday, after Federal Reserve Chairman Jerome Powell said a decline in inflation this year could be due to transitory factors, after the U.S. central bank’s meeting statement struck a cautious tone on inflation.
Two-year note yields rose to 2.30 percent, after initially falling to 2.21 percent on the statement, the lowest since March 28.
Benchmark 10-year note yields gained to 2.51 percent, after initially dropping to 2.46 percent, the lowest since April 1.
Commodities Recap
Gold declined on Wednesday as U.S. Federal Reserve Chairman Jerome Powell said the central bank's current policy stance is appropriate, reducing expectations for a rate cut.
Spot gold was down 0.2% to $1,276.31 per ounce as of (2051 GMT), after hitting a session low of $1,273.38.
Oil futures ended little changed on Wednesday after supply curbs, including further talk on an extension to OPEC-led cuts, offset rising U.S. crude inventories and record production.
Brent crude oil futures settled at $72.18 a barrel, up 12 cents, or 0.2%, after falling as low as $71.30. U.S. West Texas Intermediate crude futures (WTI) ended 31 cents, or 0.5%, lower at $63.60 a barrel, up from its $62.77 session low.
