Market Roundup
•German Apr Retail Sales (MoM) -5.5%, -2.0% forecast, 7.7% previous
• German Apr Retail Sales (YoY) 4.4%, 10.1% forecast, 11.0% previous
•French Apr Government Budget Balance -91.4B, -60.1B previous
•Spanish Unemployment Change -129.4K, -39.0K previous
•UK Apr Mortgage Approvals 86.92K, 84.98K forecast, 82.74K previous
•UK Apr M4 Money Supply (MoM) 0.1%,0.6% previous
•UK Apr BoE Consumer Credit -0.377B, 0.500B forecast, -0.535B previous
•US Apr Mortgage Lending 3.30B, 6.60B forecast, 11.83B previous
•EU Apr PPI (YoY) 7.6% , 7.3% forecast, 4.3% previous
•EU Apr PPI (MoM) 1.0%,0.9% forecast, 1.1% previous
Looking Ahead – Economic data ahead (GMT)
•12:30 Canada Apr Building Permits (MoM) -4.8% forecast, 5.7% previous
•12:55 US Redbook (YoY) 13.6% previous
•12:30 US IBD/TIPP Economic Optimism 54.4 previous
•14:30 US May Dallas Fed Services Revenues 26.1 previous
•14:30 US May Texas Services Sector Outlook 34.9 previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 UK BoE Gov Bailey Speaks
•15:45 German Buba President Weidmann Speaks
•15:45 German Buba Vice President Buch Speaks
•17:10 ECB President Lagarde Speaks
•18:00 US FOMC Member Brainard Speaks
•18:00 US Chicago Fed President Evans Speaks
•18:00 US FOMC Member Bostic Speaks
Fxbeat
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 Sterling fell against the US dollar on Wednesday as investors weighed the possibility that a new COVID variant first discovered in India could delay the final stage of the UK’s reopening on June 21, after the UK hit a three-year high of US$1.4250. The exchange rate against the U.S. dollar earlier this year. Sterling is one of the top performing G10 currency this year and has benefited from positive sentiment towards the united kingdom following Britain' speedy vaccination programme.The British pound fell 0.1% to 1.4130 US dollars at 11:30 GMT 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/CHF: The dollar strengthened against the Swiss franc on Wednesday as markets awaited U.S. jobs data and looked ahead to crucial central bank meetings in Europe and United States for guidance on the interest rates outlook. The speech by ECB President Lagarde Speech and the Fed's "Beige Book" economic snapshot, due to be released later Wednesday, will be closely watched as Fed meetings and the European Central Bank closer in late June loom largest on the horizon. Immediate resistance can be seen at 0.9030 (38.2%fib), an upside break can trigger rise towards 0.9082 (50%fib).On the downside, immediate support is seen at 0.8975 (5DMA), a break below could take the pair towards 0.8942 (23.6%fib).
USD/JPY: The dollar rose against yen on Wednesday, as the recovery in US manufacturing supported the bet on faster normalization of Fed policy. On Tuesday, the Institute of Supply Management (ISM) announced that its May US manufacturing activity index rose as the economy resumed orders to meet demand. The employment shortcomings can be the front and centre of investors’ minds on Friday with the release of nonfarm payroll numbers for May, after April’s an awful lot weaker than anticipated reading sent the greenback index slumping 0.7% on May 7.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 stock markets on Wednesday slowly climbed to record levels driven by energy and consumer stocks, while strong economic data from the United States and Europe boosted investor sentiment.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading up at 0.18 percent, Germany's Dax was down by 0.03 percent, France’s CAC was last up by 0.19 percent.
Gold plummeted on Wednesday as higher Treasury yields and a rebound in risk appetite put pressure on safe-haven metals, as investors cautiously waited for US data foe cues on economic recovery and hints of the Fed’s recent actions.
At 6:45 GMT, spot gold fell 0.3% to US$1,894.46 per ounce, and hit a high of US$1,916.40 per ounce on Tuesday.
Oil surged Wednesday, aided by OPEC + 's decision to stick to its plan to gradually restore supplies to the market and the slow pace of the Iran - United States nuclear talks.
Brent rose 83 cents, or 1.2%, to $ 71.08 a barrel. At 1121 GMT, West Texas Intermediate (WTI) crude rose 69 cents, or 1%, to $ 68.41.
