Market Roundup
• Canada Apr Building Permits (MoM) -0.5% , -4.8% forecast, 5.7% previous
• US Redbook (YoY) 13.0%,13.6% previous
• US IBD/TIPP Economic Optimism 56.4, 54.4 previous
• US May Dallas Fed Services Revenues 23.9,26.1 previous
• US May Texas Services Sector Outlook 40.0,34.9 previous
Looking Ahead - Economic Data (GMT)
•23:30 Australia May AIG Construction Index 59.1 previous
•23:00 Australia Services PMI 58.2 previous
•23:50 Japan Foreign Investments in Japanese Stocks -223.5B previous
•23:50 Japan Foreign Bonds Buying -551.5B previous
•01:30 Australia Apr Imports (MoM) 4% previous
•01:30 Australia Apr Exports (MoM) -2% previous
•01:30 Australia Apr Trade Balance 7.900B, 5.574B previous
•01:30 Australia Apr Retail Sales (MoM) 1.1%,1.1% previous
•01:45 China Caixin May Services PMI 56.3 previous
Currency Summaries
EUR/USD: The euro declined against dollar on Wednesday after data showed German retail sales fell more than expected in April. The Federal Statistical Office announced on Wednesday that in April 2021, retail sales in Germany had fallen by 5.5% compared to the previous month . In a quiet day for economic data, markets will pay attention to any comments from central bank speakers.ECB President Christine Lagarde will speak at an awards ceremony at 1710 GMT. Immediate resistance can be seen at 1.2192 (38.2% fib), an upside break can trigger rise towards 1.2257 (23.6%fib).On the downside, immediate support is seen at 1.2145 (50% fib), a break below could take the pair towards 1.2100(61.8%fib).
GBP/USD: The pound edged higher against the dollar and steadied around $1.41 on Wednesday as investors weighed the possibility that a COVID variant, first found in India, could delay the final phase of reopening in Britain on June 21.After touching a three-year high of $1.4250 versus the dollar this week, sterling fell to $1.4113 in earlier trade. It reversed course to edge 0.2% higher at $1.4166 at 1505 GMT. Sterling is a top-performing G10 currency this year and has benefited from positive global investor sentiment towards the UK following Britain’s speedy vaccination programme. Immediate resistance can be seen at 1.4174 (5DMA),an upside break can trigger rise towards 1.4214 (23.6%fib).On the downside, immediate support is seen at 1.4098 (38.2%fib), a break below could take the pair towards 1.4005(50%fib).
USD/CAD: The Canadian rose against its much stronger US counterpart on Wednesday as oil prices rose and a key level of technical support remained, and the currency neared to a six-year high it posted the day before . Oil, one of Canada's major exports, was aided by OPEC + 's decision to stick to its plan to gradually restore supplies to the market and the slow pace of Iran-US nuclear talks. The loonie traded 0.3% higher at 1.2037 versus the green, or 83.08 cents. On Tuesday it reached 1.2007, the highest level since May 2015.Immediate resistance can be seen at 1.2051 (5DMA), an upside break can trigger rise towards 1.2123 (38.2%fib).On the downside, immediate support is seen at 1.2032 (23.6%fib), a break below could take the pair towards 1.2000 (Psychological level).
USD/JPY: The dollar was little changed against yen on Wednesday, as traders waited for employment data later in the week to paint a clearer picture of the state of the U.S. economic recovery. The previous jobs report, for April, came in much weaker than expected, sending the dollar sharply lower. Then earlier this week, manufacturing data showed that while activity spiked due to pent-up demand amid the reopening from COVID-19 shutdowns, labor shortages actually hampered the sector's growth potential. Strong resistance can be seen at 109.96 (Higher BB), an upside break can trigger rise towards 110.26 (23.6%fib).On the downside, immediate support is seen at 109.26(50%fib), a break below could take the pair towards 108.80(61.8%fib).
Equities Recap
European stocks stayed close to record levels on Wednesday, helped by energy and client stocks, whereas robust economic information from the u. s. and Europe buoyed capitalist sentiment in a very largely quiet day of trading.
UK's benchmark FTSE 100 closed up by 0.39 percent, Germany's Dax ended up by 0.23 percent, France’s CAC finished the day up by 0.50 percent.
Wall Street indices posted meager gains on Wednesday ahead of the release of key US economic data later in the week as investors weighed inflation concerns and a further surge in so-called "stocks of memes" .
Dow Jones closed up by 0.07 %percent, S&P 500 closed up by 0.14% percent, Nasdaq settled down by 0.14 % percent.
Treasuries Recap
US bond yields fell moderately on Wednesday and traded in a narrow range as investors were cautious before Thursday’s private payrolls data and the monthly federal jobs report on Friday.
The 10-year Treasury bond yield fell 2.1 basis points to 1.594%. For more than a week, the benchmark rate of return has been trading in the range of 1.55% to 1.64%.
Commodities Recap
Gold rose on Wednesday and fell below the nearly five-month high touched on the previous trading day when U.S. Treasury yields plummeted as investors waited for key economic data this week to understand the outlook for inflation.
At (1743 GMT),% was quoted at US$1,906.80 per ounce. It hit US$1,916.40 on Tuesday, the highest level since January 8. Gold futures closed 0.3%, quoted at US$1909.
Oil prices rose Wednesday and hit highest level in more than a year amid the decision by OPEC and its allies to stick to the gradual restoration plan, coupled with the slow pace of the Iran-US nuclear talks.
Brent was up $ 1.1. or 1.6% to settle $ 71.35 a barrel; hit $ 71.48 a barrel, its highest level since January 2020; West Texas Intermediate (WTI) crude rose $ 1.11, or 1.6%, to settle at $ 68.83 a barrel and hit $ 69.00 during the session, its highest level since October 2018.
