Market Roundup
•UK GDP (YoY) (Q1) -6.1%,-6.1% forecast, -7.3% previous
•UK March Industrial Production (MoM) 1.8%,1.0% forecast,1.0% previous
•German Apr CPI (MoM) 0.7%, 0.7% forecast, 0.5% previous
• German Apr CPI (YoY) 2.0%, 2.0% forecast, 1.7% previous
•UK Mar Manufacturing Production (MoM) 2.1%, 1.0% forecast, 1.3% previous
•UK Mar Manufacturing Production (YoY) 4.8%,3.8% forecast, -4.2% previous
•German Apr HICP (YoY) 2.1%, 2.1% forecast, 2.0% previous
• UK Mar Industrial Production (YoY) 3.6%, 2.8% forecast, -3.5% previous
• German Apr HICP (MoM) 0.5%, 0.5% forecast, 0.5% previous
•UK Business Investment (YoY) (Q1) -18.1%,-18.1% previous
•UK GDP (QoQ) (Q1) -1.5%, -1.6% forecast, 1.3% previous
•UK Business Investment (QoQ) (Q1) -11.9%,5.9% previous
•UK Mar Construction Output (MoM) 5.8%, 0.6% forecast, 1.6% previous
•UK Mar U.K. Construction Output (YoY) 6.0%,0.1% forecast, -4.3% previous
•UK Mar Trade Balance Non-EU -6.55B, -3.50B forecast, -10.73B previous
•UK GDP (MoM) 2.1%, 0.4% forecast
•UK Monthly GDP 3M/3M Change-1.5%,-1.6% previous
• French Apr HICP (MoM) 0.2%,0.3% forecast, 0.3% previous
•French Apr CPI (MoM) 0.1%, 0.6% previous
•EU March Industrial Production (MoM) 0.1%,0.7% forecast, -1.0% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Apr CPI, n.s.a (MoM) 0.71% previous
•12:30 US Apr CPI Index, s.a 264.79 previous
•12:30 US Apr Core CPI Index 271.21 previous
•12:30 US Apr CPI (MoM) 0.2%,0.6% previous
•12:30 US Apr Core CPI (YoY) 2.3% forecast , 1.6% previous
•12:30 US Apr CPI (YoY) 3.6% forecast , 2.6% previous
•12:30 US Apr Core CPI (MoM) 0.3% forecast , 0.3% previous
•13:45 US Apr ISM-New York Index 804.5 previous
•14:30 US Crude Oil Inventories -2.817M forecast , -7.990M previous
•14:30 US Cushing Crude Oil Inventories 0.254M previous
•18:00US Apr Federal Budget Balance -220.0B forecast , -660.0B previous
Looking Ahead - Economic events and other releases (GMT)
•13:45 US FOMC Member Clarida Speaks
•17:00 US FOMC Member Bostic Speaks
•17:00 US FOMC Member Harker Speaks
Fx Beat
EUR/USD: The euro dipped against dollar on Wednesday as market awaited U.S. inflation data due later in the session. U.S. April inflation reading is due at 1230 GMT. The much-anticipated U.S. consumer price data is forecast to show a 3.6% lift in year-on-year prices. Investors will assess the chance of any change of stance from the Federal Reserve, which says near-term inflation is transitory. Immediate resistance can be seen at 1.2181 (23.6%fib), an upside break can trigger rise towards 1.2208 (Higher BB).On the downside, immediate support is seen at 1.2105 (38.2%fib), a break below could take the pair towards 1.2085 (14DMA).
GBP/USD: Sterling rose higher against dollar on Wednesday after UK GDP data for March beat market expectations, keeping investors optimistic about the UK’s economic recovery from the pandemic. Sterling jumped to a two-month high on Monday this week due to a combination of dollar weakness, market relief over Scottish election results, lockdown easing measures, and the Bank of England raising its forecast for economic growth. Immediate resistance can be seen at 1.4175 (23.6%fib), an upside break can trigger rise towards 1.4200 (Psychological level).On the downside, immediate support is seen at 1.4068(38.2%fib), a break below could take the pair towards 1.4050 (5DMA).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as traders hung on to bets that the Federal Reserve would remain steadfast in its easy policy settings ahead of data expected to show a sharp rise in annual U.S. inflation.Analysts forecast figures due at 1230 GMT to show a 3.6% lift in year-on-year prices, boosted by last April's low base. The month-on-month forecast is for a modest 0.2% rise. Immediate resistance can be seen at 0.9060 (38.2%fib), an upside break can trigger rise towards 0.9099 (14DMA).On the downside, immediate support is seen at 0.9002(Lower BB), a break below could take the pair towards 0.8976(23.6%fib).
USD/JPY: The dollar edged higher the yen on Wednesday investors awaited the much-awaited U.S. consumer price data due later in the day. The U.S. consumer price data due at 1230 GMT is keenly awaited by market participants to gauge inflationary pressure. Despite various U.S. Federal Reserve officials reiterating a firmly dovish policy stance, investors are worried that higher inflation from a spike in commodity prices could force the Fed to raise interest rates. The dollar was trading down 0.20% on the yen at 108.54. Strong resistance can be seen at 108.95 (38.2%fib), an upside break can trigger rise towards 109.43(Higher B).On the downside, immediate support is seen at 108.49 (38.2%fib), a break below could take the pair towards 108.07 (50%fib).
Equities Recap
European stocks steadied on Wednesday after their worst selloff this year as strong earnings reports and signs of a speedy economic recovery offset concerns about a rapid rise in prices.
At (GMT 11:50),UK's benchmark FTSE 100 was last trading up at 0.43 percent, Germany's Dax was up by 0.69 percent, France’s CAC was last up by 0.06 percent.
Commodities Recap
Gold prices fell on Wednesday, on track to snap a five-session winning streak, weighed down by a firmer dollar and U.S. Treasury yields ahead of U.S. consumer price data.
Spot gold was down 0.1% to $1,834.46 per ounce by 1044 GMT. U.S. gold futures fell 0.1% to $1,835.10.
Oil prices rose on Wednesday on signs of a speedy economic recovery and upbeat forecasts for energy demand supported by vaccinations against COVID-19 although waves of infections in India and Brazil curbed gains.
Brent crude climbed 83 cents, or 1.2% to $69.38 a barrel at 1116 GMT. West Texas Intermediate U.S. crude rose 85 cents, or 1.3%, to $66.13.
