Market Roundup
- EUR/USD +0.20%, USD/JPY -0.09%, GBP/USD +0.30%, EUR/GBP -0.05%
- DXY -0.17%, DAX +0.13%, FTSE -0.12%, Brent +0.11%, Gold -0.09%
- Dollar treads water ahead of Fed meeting
- Sterling beams up higher with lingering Brexit optimism
- Euro inches higher upon stronger economic growth data out of the euro zone, prompted some short covering from hedge funds
- Japanese yen edgy, marginally dropped to 111.50 yen per dollar in a quiet trading as Japanese markets remain shut down for a series of holidays
- BOJ says super-low rates to last another year, giving first timeframe
Economic Data Ahead
- (0815 ET/1215 GMT) ADP national employment for April 180,000 (consensus) 129,000 (previous)
- (0945 ET/1345 GMT) Markit Manufacturing PMI Final for April
- (1000 ET/1400 GMT) Construction PMIs for March
- (1000 ET/1400 GMT) ISM Manufacturing PMI for April
- (1000 ET/1400 GMT) ISM Manufacturing Prices Paid for April
- (1400 ET/1800 GMT) Fed funds target rate for 01 May
Key Events Ahead
- (0815 ET/1215 GMT) ADP's national employment data for April will likely show an addition of 180,000 jobs, up from 129,000 jobs in March.
- (1000 ET/1400 GMT) The Commerce Department is likely to report construction spending rose 0.1 percent in March, after having risen 1.0 percent in February
- (1400 ET/1800 GMT) Fed funds target rate for 01 May, Fed likely to ignore Trump's call to cut interest rates
FX Beat
DXY: DXY is trading lower for 4thconsecutive days and nearly 100 pips from high of 98.33. It hits low of 97.34 and is currently trading around 97.37.
The near-term support is around 97.35 (20- day MA) and any violation will drag the index till 97 (55- day EMA)/96.75. It should break below 96.75 for further weakness.
On the higher side, 98 will be acting as minor resistance and any indicative break above targets 98.33/98.55. FxWirePro's Hourly Dollar Strength Index stood at -96 (Bearish) by 11:18 GMT.
EUR/USD: The euro is up by +0.20%, EURUSD trading higher for 5thconsecutive days and jumped more than 100 pips from intraday low of 1.11097 on broad based US dollar selling.US Conference Board consumer confidence rose to 129.2 in Apr compared to forecast of 126.20 hits high of 1.12397.and is currently trading around 1.12361.
On the higher side, pair is trading above major resistance 1.1233 (20- day MA) and a jump till 1.1260 (trend line resistance)/1.13240. Any break above 1.1360 targets 1.14200/1.14500.
The near-term support is around 1.11750 and any break below will drag the pair till 1.1140/1.1100. FxWirePro's Hourly Euro Strength Index stood at 96 (Bullish) by 11:18 GMT.
USD/CAD: USDCAD has lost more than 100 pips from yesterday amid weak Canadian GDP data. Canadian GDP contracted 0.1% in Feb compared to previous month 0.3% growth. BOC Governor Stephen Poloz said that economy will grow better in next quarter and reiterated that accommodative policy was still warranted.US Fed monetary policy meeting to be held today for further direction. It hits low of 1.33770 and is currently trading around 1.33838.
On the lower side, near term support is around 1.3380 (20- day MA) and any break below will drag the pair to next level till 1.3340/1.3300. Any violation below 1.3270 confirms further weakness.
The near-term resistance is at 1.3445 and any convincing break above will take the pair till 1.3480/1.3525. FxWirePro's Hourly CAD Strength Index stood at 71 (Bullish) by 11:18 GMT.
GBP/USD: Cable prices accelerated up through 1.2975-1.3020 resistance yesterday and breached falling wedge resistance, along with broad USD weakness as well as UK yields rallying strongly. On the face of it, last week’s break of range supports is looking like a false move. However, we need further evidence to be more convinced of a move back towards the 1.33-1.34 range highs. On the day momentum is looking stretched, so we see the upside being limited to around 1.3075-1.3100 resistance. A slide back through 1.2950 support would risk re-establishing last week’s move and risk a test down to 1.2820-1.2775. FxWirePro's Hourly Sterling Strength Index stood at 56 (Bullish) 11:18 GMT.
USD/CHF: USDCHF has broken major support 1.01740 after a long consolidation for past three trading days. US Conference Board consumer confidence rose to 129.2 in Apr compared to forecast of 126.20. Markets eye US Fed monetary policy for direction. US dollar index continues to trade lower for 4thconsecutive days and declined nearly 90 pips from high of 98.33. The pair hits intraday low of 1.0827 and is currently trading around 1.01577.
The near-term support is around 1.01570 (23.6% fib) and any break below will take the pair to next level till 1.0120/1.0100/1.0050.
The major resistance is around 1.02500 and any convincing break above targets 1.0300/1.03400. FxWirePro's Hourly Swiss Franc Strength Index stood at 79 (Bullish) by 11:18 GMT.
Equities Recap
Global equities edges higher, extending the global equity market rally into a fifth month as investors cheered Apple's strong results and the U.S. dollar dipped ahead of a policy statement from the Federal Reserve.
S&P500 is up by +0.10% as Apple shares rallied considerably after the closing bell, the iPhone maker delivered upbeating numbers that soothed apprehensions about a prolonged weakness in global corporate results.
Germany's DAX is up by 0.13% at 12,344.08 points; France's CAC 40 trades 0.3 percent lower at 5,560.19 points.
Commodities Recap
Crude: Oil prices fell on Wednesday after a report showed a rise in U.S. crude inventories, but global markets remained tense amid an intensifying political crisis in Venezuela, tightening U.S. sanctions on Iran, and ongoing OPEC supply cuts.
Brent crude oil futures were at $71.52 per barrel at 0652 GMT, down 54 cents, or 0.8 percent, from their last close.
U.S. crude stocks rise to 466.4 mln barrels -API
Crisis in Venezuela seen as risk to oil supply
U.S. ends all waivers on Iran sanctions
Bullion: Gold prices were little changed on Wednesday, having edged higher in the previous session on a weaker dollar, as investors await the U.S. Federal Reserve's decision on interest rates later in the day.Spot gold price was nearly steady at $1,282.01 per ounce as of 0107 GMT.
U.S. gold futures were also little changed at $1,284.30 an ounce.
Treasuries Recap
The yields on the benchmark 10-year U.S. Treasury note was lower at around 2.5053 percent, while the yield on the 30-year Treasury bond was lower around 2.9319 percent.
The Australian government bond futures were unchanged as the market awaited the outcome of the U.S. Federal Reserve's policy meeting later in the day. The three-year bond contract held at 98.745, with the 10-year contract at 98.2000.
The New Zealand yields on two-year government bonds fell back to 1.42 percent, having been as high as 1.475 percent on Tuesday.
