Market Roundup
•Brent posts lowest settle since December 2021
•Fed delivers small rate hike, signals possible pause in tightening cycle
•US crude, distillate stockpiles fall, gasoline builds -EIA
•US Apr ADP Nonfarm Employment Change 296K,148K forecast,145K previous
•US Apr Services PMI 53.6, 53.7 forecast,52.6 previous
•US Apr S&P Global Composite PMI 53.4, 53.5 forecast,52.3 previous
•US Apr ISM Non-Manufacturing New Orders 56.1,57.0 forecast,52.2 previous
• US Apr ISM Non-Manufacturing Employment 50.8, 52.6 forecast,51.3 previous
•US Apr ISM Non-Manufacturing PMI 51.9, 51.8 forecast,51.2 previous
•US Apr ISM Non-Manufacturing Prices 59.6, 59.9 forecast,59.5 previous
•US Apr ISM Non-Manufacturing Business Activity 52.0, 54.5 forecast,55.4 previous
•US Gasoline Production -0.638M,-0.042M forecast,0.541M previous
•US EIA Refinery Crude Runs (WoW) --0.098M,0.011M previous
•US Heating Oil Stockpiles 0.648M, 0.114M forecast,0.151M previous
•US EIA Weekly Distillates Stocks-1.191M, -1.084M forecast,-0.576M previous
• US Gasoline Inventories 1.743M,-1.157M forecast,-2.408M previous
• US Crude Oil Inventories -1.280M, -1.100M forecast, -5.054M previous
• US Fed Interest Rate Decision 5.25%, 5.25% forecast, 5.00% previous
Looking Ahead Economic Data(GMT)
•01:00 New Zealand ANZ Commodity Price Index (MoM) 1.2% forecast,1.3% previous
•01:30 Australia Mar Imports (MoM) -9.0% previous
•01:30 Australia Mar Exports (MoM) -3.0% previous
•01:30 Australia Trade Balance 12.650B forecast, 13.870B previous
•01:45 China Apr Caixin Manufacturing PMI 50.3 forecast,50.0 previous
Looking Ahead Events And Other Releases( GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro strengthened on Wednesday as dollar fell after the U.S. Federal Reserve delivered a small interest rate hike and signaled it may pause further increases. The Fed raised interest rates by a quarter of a percentage point and signalled it may pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the U.S. debt ceiling, and monitor the course of inflation. The dollar, which was down ahead of the Fed's statement, deepened its losses in volatile trading on the prospect of a rate hiking pause.The dollar index fell 0.461%, with the euro up 0.5% to $1.1054 Immediate resistance can be seen at 1.1078(23.6%fib), an upside break can trigger rise towards 1.1113(Higher BB).On the downside, immediate support is seen at 1.1024 (5DMA), a break below could take the pair towards 1.0992(38.2%fib).
GBP/USD: The pound strengthened against dollar on Wednesday as U.S. dollar steepened declines after the U.S. Federal Reserve raised interest rates. The U.S. central bank raised its benchmark overnight interest rate by a quarter of a percentage point to the 5.00%-5.25% range, as expected by financial markets, but in doing so dropped from its policy statement language saying that it “anticipates” further rate increases would be needed. A majority of traders had been betting on a 25-basis-point hike but investors had been less certain that the central bank will leave the door open for a hiking pause at the June meeting. Sterling was last trading at $1.2557, up 0.75%. Immediate resistance can be seen at 1.2588 (23.6%fib), an upside break can trigger rise towards 1.2609(Higher BB).On the downside, immediate support is seen at 1.2531(5DMA), a break below could take the pair towards 1.2499(38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday as the Federal Reserve’s move to signal a possible pause in interest rate hikes offset additional pressure on oil prices . The greenback fell against a basket of major currencies as the Fed raised interest rates by a quarter of a percentage point and said it would watch incoming data to determine if more hikes “may be appropriate. The price of oil, one of Canada’s major exports, settled 4.3% lower at $68.60 a barrel, its second straight day of steep losses, as investors fretted about the health of the U.S. economy. The loonie was trading 0.2% higher at 1.36 to the greenback , clawing back some of the previous day’s sharp decline. Immediate resistance can be seen at 1.3650 (23.6%fib), an upside break can trigger rise towards 1.3675(Higher BB).On the downside, immediate support is seen at 1.3590(5DMA), a break below could take the pair towards 1.3572 (38.2%fib).
USD/JPY: The dollar dipped against Japan's yen on Wednesday after Federal Reserve raised interest rates as expected, but signaled a pause in its tightening cycle .The Fed raised interest rates by a quarter percentage point to quell the inflationary pressures that have kept price rises well above its 2% target.It also signalled a pause in further increases to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the U.S. debt ceiling, and monitor the course of inflation . The Japanese yen strengthened 0.74% versus the greenback at 135.53 per dollar .Strong resistance can be seen at 135.95(23.6%fib), an upside break can trigger rise towards 136.53(Higher BB).On the downside, immediate support is seen at 134.24 (38.2%fib), a break below could take the pair towards 133.45(5DMA)
Equities Recap
European shares climbed on Wednesday, a day after their biggest fall in a month, as speculation mounted the U.S. Federal Reserve might deliver its last interest rate hike, while energy stocks extended declines.
UK's benchmark FTSE 100 closed up by 0.22 percent, Germany's Dax ended up by 0.69 percent, France’s CAC finished the day up by 0.56 percent.
U.S. stocks ended lower on Wednesday, reversing gains after comments by Federal Reserve Chair Jerome Powell left investors wondering what the U.S. central bank's next move would be with interest rate hikes.
Dow Jones closed down by 1.08 percent, S&P 500 ended down by 1.16 percent, Nasdaq settled down by 0.46 percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday after the Federal Reserve raised interest rates by 25 basis points, as expected, but signaled a pause in its tightening cycle at the next few meetings - giving officials space to assess ongoing challenges such as bank failures and the continuing saga of the debt ceiling.
U.S. two-year yields, which reflect rate move expectations, were last down 2.9 basis points (bps) at 3.951% . The yield on benchmark 10-year notes slid 2.8 bps to 3.408%.
Commodities Recap
Gold firmed on Wednesday after a brief jump to nearly 1% as the U.S. Federal Reserve delivered a widely expected rate hike and signalled a pause in further increases.
Spot gold was 0.4% higher at $2,024.19 per ounce by 3:25 p.m. EDT (19:25 GMT) after touching its highest since April 14 at $2,036.15 earlier.U.S. gold futures settled up 0.7% at $2,037.
Oil prices fell 4% on Wednesday, extending steep losses from the previous session after the U.S. Federal Reserve raised interest rates and as investors fretted about the economy.
Brent futures settled $2.99 lower, or 4%, to $72.33 a barrel, the global benchmark's lowest close since December 2021. Brent hit a session low of $71.70 a barrel, its lowest since March 20.
U.S. West Texas Intermediate crude (WTI) fell $3.06, or 4.3%, to $68.60. WTI's session low was $67.95 a barrel, lowest since March 24.
