Market Roundup
• UK June Halifax House Price Index (MoM) -0.5, 1.2% forecast,1.3% previous
•German May Industrial Production (MoM) 0.3, 0.5% forecast, -1.0% previous
•French May Current Account -2.30,-1.40B previous
•French May Trade Balance -6.8,-6.2B previous
•French May Exports 39.4,40.6B previous
•French May Imports 46.2B,46.9B previous
•Italian May Retail Sales (MoM) 0.2, -0.4% previous
•US Mortgage Market Index 627.0,638.8 previous
•11:00 US MBA Purchase Index 252.4,255.2 previous
Looking Ahead - Economic Data (GMT)
•12:55 US Redbook (YoY) 18.2% previous
•14:00 Canada June Ivey PMI n.s.a 59.8 previous
•14:00 Canada June Ivey PMI 64.7 previous
•14:00 US May JOLTs Job Openings 9.388M forecast, 9.286M previous
•14:00 US IBD/TIPP Economic Optimism 56.4 previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US FOMC Meeting Minutes
•19:30 FOMC Member Bostic Speaks
Currency Summaries
EUR/USD: The euro traded near a three-month low against the dollar on Wednesday after German data raised doubts about the strength of the economic recovery, while the U.S. currency awaited the minutes from the last Federal Reserve policy meeting. German-made goods posted their sharpest slump in May since the first lockdown in 2020, hurt by weaker demand from countries outside the euro zone. The European single currency changed hands at $1.1820 , having touched a three-month low of $1.1806 on Tuesday. Immediate resistance can be seen at 1.1841 (5DMA), an upside break can trigger rise towards 1.1895 (38.2%fib).On the downside, immediate support is seen at 1.1808 (23.6%fib), a break below could take the pair towards 1.1723(Lower BB).
GBP/USD: Sterling steadied versus the dollar on Wednesday as Britain set out reopening plans following the COVID-19 pandemic. found support this week on British Prime Minister Boris Johnson’s plans to end social and economic COVID-19 restrictions in England in two weeks’ time.Johnson said on Monday the government aimed to end restrictive measures on July 19, with a final decision to be taken next week. He said the step would end formal limits on social contact, the instruction to work from home and mandates to wear face masks.Sterling was 0.23% higher versus the dollar at 1.3827 by 11:30 GMT. Immediate resistance can be seen at 1.3827 (14DMA), an upside break can trigger rise towards 1.3868 (38.2%fib).On the downside, immediate support is seen at 1.3774(23.6%fib), a break below could take the pair towards 1.3680 (Lower BB).
USD/CHF: The dollar was little changed against the Swiss franc on Wednesday as investors braced for minutes from the Federal Reserve’s last meeting which could confirm a hawkish turn in U.S. monetary policy. Minutes of the Fed’s June policy meeting due later on Wednesday might show how serious members were about tapering their asset buying and how early hikes could begin. At ( GMT 09:14),greenback edged lower 0.02% versus the Swiss franc to 0.9232.Immediate resistance can be seen at 0.9254 (38.2%fib), an upside break can trigger rise towards 0.9333(23.6%fib).On the downside, immediate support is seen at 0.9217 (5DMA), a break below could take the pair towards 0.9180 (50%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as traders positioned themselves ahead of the release of the minutes from the U.S. Federal Reserve's pivotal June meeting.Market participants will be looking for clues as to when the Fed will begin to taper its pandemic-induced bond-buying spree amid a recovering economy, when minutes of the June meeting are published on Wednesday. Strong resistance can be seen at 110.92(23.6%fib), an upside break can trigger rise towards 111.20(July 5th high).On the downside, immediate support is seen at 110.49(38.2%fib), a break below could take the pair towards 110.14 (50%fib).
Equities Recap
European stocks gained on Wednesday as commodity-linked stocks recovered from sharp falls in the previous session, while lower bond yields continued to support highly-valued technology shares.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading higher at 0.20 percent, Germany's Dax was up by 0.39 percent, France’s CAC was trading up by 0.07 percent.
Commodities Recap
Gold prices rose on Wednesday towards a three-week high scaled in the previous session, helped by a fall in U.S. Treasury yields, while investors awaited minutes from the Federal Reserve’s June meeting for more clues on the policy outlook.
Spot gold was up 0.4% at $1,803.06 per ounce, as of 0654 GMT, after hitting its highest since June 17 at $1,814.78 on Tuesday.
Oil rose to $75 a barrel on Wednesday with support coming from a tight market, after a steep drop from multi-year highs in the previous session amid uncertainty about OPEC+ supply policy.
Brent crude was up 86 cents, or 1.2%, at $75.39 a barrel by 0905 GMT, after slumping more than 3% on Tuesday. U.S. West Texas Intermediate gained 58 cents, or 0.8%, at $73.95, having declined by more than 2% in the previous session.
