Market Roundup
•US Apr Existing Home Sales (MoM) -1.9% , -4.3% previous
•US Apr Existing Home Sales 4.14M, 4.21M forecast,4.19M previous
•US Gasoline Inventories-0.945M, -1.600M forecast,-0.235M previous
•US EIA Weekly Distillates Stocks -0.945M,-0.100M forecast,-0.045M previous
•US Crude Oil Imports -0.676M ,0.108M previous
• US EIA Weekly Refinery Utilization Rates (WoW) 1.3% ,1.9% previous
• US EIA Refinery Crude Runs (WoW) 0.227M ,0.307M previous
•US Distillate Fuel Production 0.260M ,0.021M previous
•US Crude Oil Inventories 1.825M,-2.400M forecast,-2.508M previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined against dollar on Wednesday as investors digested minutes from the U.S. Federal Reserve's most recent policy meeting.Federal Reserve officials at their last policy meeting said they still had faith that price pressures would ease at least slowly in coming months, but doubts emerged about whether the current level of interest rates was high enough to guarantee that outcome and "various" officials said they'd be willing to hike borrowing costs again if inflation surged.That meeting was held before data showed the pace of consumer price increases beginning to cool again in April, yet reflected what U.S. central bank officials since then have said is increased uncertainty about the path of inflation and monetary policy. The euro was down 0.3% at $1.08205 Immediate resistance can be seen at 1.0861(Daily high), an upside break can trigger rise towards 1.0900(23.6%fib).On the downside, immediate support is seen at 1.0820 (38.2% fib), a break below could take the pair towards 1.0796(50% fib).
GBP/USD: The pound jumped on Wednesday after data showed UK inflation neared the Bank of England's target in April, but did not slow as much as expected, leaving the chances of a June rate cut unchanged at around 50%.British consumer prices rose by 2.3% in annual terms in April, slowing from a 3.2% increase in March, the Office for National Statistics said.The Bank of England and economists polled by Reuters had forecast an annual rate of 2.1%.Sterling rose by as much as 0.3% to a new two-month high of $1.27520, and was last trading at $1.2749. Money markets now see only a 13% chance of a rate cut in June . Earlier this week, pricing in derivatives markets suggested traders saw a 55% chance of a first cut coming in June. Immediate resistance can be seen at 1.2755(23.6%fib), an upside break can trigger rise towards 1.2787(Higher BB).On the downside, immediate support is seen at 1.2686(38.2% fib), a break below could take the pair towards 1.2623(50% fib).
USD/CAD: The Canadian dollar weakened to a near two-week low against its U.S. counterpart on Wednesday as oil prices fell and an uncertain outlook for U.S. interest rates weighed on investor sentiment. Federal Reserve officials acknowledged disappointment over recent inflation readings in the minutes from the central bank's latest policy meeting. Economic data showed U.S. existing home sales were below analyst estimates, while hotter-than-expected core inflation data from Britain prompted investors to shave bets on a Bank of England rate cut next month. The loonie was trading 0.3% lower at 1.3695 per U.S. dollar, or 73.02 U.S. cents, after touching its weakest level since May 9 at 1.3698. Immediate resistance can be seen at 1.3709 (23.6%fib), an upside break can trigger rise towards 1.3754 (Higher BB).On the downside, immediate support is seen at 1.3659(50%fib), a break below could take the pair towards 1.3613 (61.8%fib).
USD/JPY: The U.S. dollar strengthened against yen on Wednesday after minutes of the last Fed meeting showed officials acknowledging disappointment over recent inflation readings. Federal Reserve officials at their last policy meeting indicated they still had faith price pressures would ease, if only slowly, according to the minutes of the U.S. central bank's April 30-May 1 session. Investors have been shoring up U.S. rate cut bets after a milder inflation reading last week, even as Fed officials have continued to sound a cautious note.Fed Governor Christopher Waller on Tuesday said he would need to see several more months of good inflation data before he would be comfortable supporting rate cuts.That timeline was echoed by Cleveland Fed President Loretta Mester. Strong resistance can be seen at 156.82 (23.6%fib), an upside break can trigger rise towards 158.06(Higher BB).On the downside, immediate support is seen at 155.25(38.2% fib), a break below could take the pair towards 155.00(Psychological level).
Equities Recap
European shares pulled back on the stronger-than-expected British inflation data following a report about possible Chinese tariffs on imported cars.
UK's benchmark FTSE 100 closed down by 0.55 percent, Germany's Dax ended down by 0.24 percent, France’s CAC finished the day down by 0.61 percent.
Wall Street ended lower and oil prices fell on Wednesday as investors parsed minutes from the U.S. Federal Reserve's most recent policy meeting.
Dow Jones closed down by 0.51 % percent, S&P 500 closed down by 0.27% percent, Nasdaq settled down by 0.18% percent.
Commodities Recap
Crude prices dropped for the third consecutive session on fears that demand would be hit by prolonged restrictive Fed policy.
U.S. crude slid 1.39% to settle at $77.57 per barrel, while Brent settled at $81.90 per barrel, down 1.18% on the day.
Gold prices dipped over 1% on Wednesday as the gold rally cooled with investors booking profits, as traders pulled back from bets on Federal Reserve's rate cuts this year.
Spot gold fell 1.8% to $2,377.43 per ounce by 1858 GMT. Prices had scaled a record high of $2,449.89 on Monday.
U.S. gold futures settled 1.4% lower to $2,392.90.
