Market Roundup
•French May Consumer Confidence 97, 97 forecast, 94 previous
•French May Business Survey 107, 106 forecast, 104 previous
•Switzerland May ZEW Expectations 72.2, 68.3 previous
Looking Ahead - Economic Data (GMT)
•13:00 Belgium Consumer Confidence -6 previous
•14:30 US Gasoline Inventories -0.614M, -1.963M previous
•14:30 US Crude Oil Inventories -1.050M forecast, 1.321M previous
Looking Ahead - Economic events and other releases (GMT)
•US FOMC Member Quarles Speaks
•22:00 BoC Gov Council Member Lane Speaks
Fxbeat
EUR/USD: The euro edged lower against dollar on Wednesday as dovish comments from ECB member weighed on euro. ECB board member Fabio Panetta on Wednesday said the ECB should not reduce the pace of asset purchases as the economic recovery is in an early phase and inflation remains too low. Euro rose earlier in the month, driven by speculation that a stronger economic outlook driven by speedier vaccinations in the bloc could prompt the ECB to slow its PEPP purchases at its June 10 meeting. The euro was last down 0.14percent at $1.2231. Immediate resistance can be seen at 1.2276(23.6%fib), an upside break can trigger rise towards 1.2300(Psychological level).On the downside, immediate support is seen at 1.2210(38.2%fib), a break below could take the pair towards 1.2175 (11DMA).
GBP/USD: Britain’s pound traded within recent ranges against the dollar on Wednesday, as a lack of fresh economic catalysts in a sparse data calendar kept the currency in consolidation mode. Sterling is the second best-performing G10 currency versus the dollar this year, up 3.4% year-to-date and trailing only the commodity-linked Canadian dollar. That performance is a result of investors betting on a quicker reopening for Britain’s economy on the back of its rapid COVID-19 vaccination pace. Immediate resistance can be seen at 1.4175(Daily high), an upside break can trigger rise towards 1.4216 (23.6%fib).On the downside, immediate support is seen at 1.4130 (11DMA), a break below could take the pair towards 1.4100(38.2%fib).
USD/CHF: The dollar was little changed against the Swiss franc on Wednesday after U.S. Federal Reserve officials reaffirmed a dovish monetary policy stance, providing yet more assurance to investors worried about the inflation outlook.Richard Clarida, the Fed's vice chair, said on Tuesday that the U.S central bank would be able to curb an outbreak of inflation and engineer a "soft landing" without throwing the country's economic recovery off track. Immediate resistance can be seen at 0.8970 (5 DMA), an upside break can trigger rise towards 0.9022(38.2% fib).On the downside, immediate support is seen at 0.8949 (23.6% fib), a break below could take the pair towards 0.8911 (Lower BB).
USD/JPY: The dollar edged higher against the Japanese yen Wednesday as risk sentiment firmed after U.S. Federal Reserve officials maintained a dovish stance over rates easing inflation concerns. Fed Vice Chairman Richard Clarida on Tuesday said the central bank could be ready to discuss the slowdown of asset purchases, in an echo of the recent minutes from the Fed’s latest meeting. The greenback was up 0.14% against the yen at 108.89.Strong resistance can be seen at 109.02 (38.2%fib), an upside break can trigger rise towards 109.33 (May 20th high).On the downside, immediate support is seen at 108.79 (30DMA), a break below could take the pair towards 108.63(61.8%fib).
Equities Recap
European stocks approached record highs on Wednesday after U.S. Federal Reserve officials soothed investors' inflation worries.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.36 percent, Germany's Dax was down by 0.16percent, France’s CAC finished was down by 0.08 percent.
Commodities Recap
Gold prices rose above the key psychological level of $1,900 per ounce on Wednesday, helped by a weaker dollar and growing inflation concerns after Federal Reserve officials maintained a dovish stance over rates.
Spot gold was up 0.3% to $1,904.50 per ounce by 0647 GMT, its highest level since Jan. 8.U.S. gold futures gained 0.4% to $1,905.40 per ounce.
Oil traded in a narrow range on Wednesday, supported by optimism about improving U.S. fuel demand and a weak dollar but with the prospect of returning Iranian oil keeping any gains in check.
Brent was up 3 cents, or less than 0.1%, to $68.68 a barrel by 1027 GMT, and U.S. West Texas Intermediate (WTI) crude was down 11 cents, or 0.2%, at $65.96 a barrel.
