Market Roundup
• German March Factory Orders (MoM) -15.6%, -10.0% forecast, -1.2% previous
• Spanish April Services PMI 7.1, 10.0 forecast, 23.0 previous
• Italian April Composite PMI 10.9, 20.2 previous
• Italian April Services PMI 10.8, 9.0 forecast, 17.4 previous
• French April Markit Composite PMI 11.1, 11.2 forecast, 28.9 previous
• French April Services PMI 10.2, 10.4 forecast, 27.4 previous
• German April Composite PMI 17.4, 17.1 forecast, 35.0 previous
• German April Services PMI 16.2, 15.9 forecast, 31.7 previous
• German April Markit Composite PMI 13.6, 13.5 forecast, 29.7 previous
• EU April Services PMI 12.0, 11.7 forecast, 26.4 previous
• UK April Construction PMI 8.2 , 22.0 forecast, 39.3 previous
• EU March Retail Sales (MoM) -11.2%,-10.5% forecast, 0.6% previous
Looking Ahead - Economic Data (GMT)
•12:15 US April ADP Nonfarm Employment Change -20,050K forecast, -27K previous
• 13:00 Brazil April Markit Composite PMI 37.6 previous
• 13:00 Brazil April Markit Services PMI 34.5 previous
• 14:30 US Crude Oil Inventories 7.759M forecast, 8.991M previous
• 14:30 US Gasoline Inventories 0.043M forecast, -3.669M previous
Looking Ahead - Events, Other Releases (GMT)
• 17:30 US FOMC Member Bostic Speaks Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday after a court decision challenging German participation in Europe’s stimulus programme and worries about a bumpy global recovery spooked investors. Germany’s highest court on Tuesday gave the European Central Bank three months to justify purchases under its bond-buying programme, or lose the Bundesbank as a participant in a scheme aimed at cushioning the economic blow from the coronavirus. Immediate resistance can be seen at 1.0824 (38.2% fib), an upside break can trigger rise towards 1.0873 (21 DMA).On the downside, immediate support is seen at 1.0783 (Daily low), a break below could take the pair towards 1.0760 (Lower BB).
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GBP/USD: Sterling declined against dollar on Wednesday as downbeat Uk construction PMI data weighed on sterling. British construction suffered its sharpest decline on record, more than twice as large as the previous month, even though general construction work was not ordered by the government to stop as part of the lockdown intended to limit the spread of the coronavirus. By 12:00 GMT, sterling was down 0.46% against the dollar at $1.2371. Immediate resistance can be seen at 1.2411 (21 DMA), an upside break can trigger rise towards 1.2468 (5 DMA).On the downside, immediate support is seen at 1.2355 (Daily low), a break below could take the pair towards 1.2289(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as easing of coronavirus-driven restrictions by many countries improved investor appetite for greenback. Many countries like Italy, Germany and the United States are tentatively easing lockdowns. Market participants are now waiting for the ADP National Employment Report on private U.S. payrolls due later in the day. Immediate resistance can be seen at 0.9758 (Daily high), an upside break can trigger rise towards 0.9778 (Higher BB).On the downside, immediate support is seen at 0.9702 (9 DMA), a break below could take the pair towards 0.9676 (5 DMA).
USD/JPY: The dollar rose higher against the Japanese yen on Wednesday escalating U.S.-China tensions over the origin of the novel coronavirus outbreak increased demand for safe haven yen. U.S. President Donald Trump has repeatedly taken aim at China as the source of the pandemic and warned that it would be held to account.On Tuesday, he urged China to be transparent about the origins of the novel coronavirus that has killed more than a quarter of a million people worldwide since it started in the Chinese city of Wuhan late last year. Immediate resistance can be seen at 106.80 (5 DMA), an upside break can trigger rise towards 107.00 (9 DMA ).On the downside, immediate support is seen at 106.20 (Lower BB), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares opened little changed on Wednesday as a batch of mixed earnings reports and simmering U.S.-China tensions added to doubts about a swift economic recovery even as many countries eased lockdown measures.
At (GMT 11:51),UK's benchmark FTSE 100 was last trading up at 0.58 percent, Germany's Dax was down by 0.18 percent, France’s CAC finished was down by 0.29 percent.
Commodities Recap
Gold prices fell on Wednesday as the dollar rose to its highest in more than a week and easing of coronavirus-driven restrictions by many countries improved investor appetite for risky assets and dulled demand for bullion.
Spot gold was down 0.3% to $1,700.52 per ounce by 0957 GMT. U.S. gold futures fell 0.2% to $1,707.00.
Oil rose above $31 a barrel on Wednesday as hopes for a recovery in demand as some countries ease coronavirus lockdowns offset a report showing a higher-than-expected rise in U.S. inventories.
Brent was up 79 cents, or 2.6%, at $31.76 a barrel at 0930 GMT, having risen in the past six sessions. West Texas Intermediate (WTI) crude added 88 cents, or 3.6%, to $25.44.
Treasuries Recap
German borrowing costs rose on Wednesday ahead of the expected launch of the country’s first syndicated bond sale in half a decade, as it prepares to support an economy already hammered hard by the COVID-19 crisis.
Germany’s benchmark 10-year yields rose two basis points to -0.55%, though it remains close to seven-week lows hit on Tuesday.The longer-dated 30-year bonds were up over a basis point to -0.12%.
