Market Roundup
•U.S. Fed meeting minutes due at 1800 GMT
•Italian March Composite PMI 51.9, 51.4 previous
•Italian March Services PMI 48.6, 49.0 forecast, 48.8 previous
•French March Markit Composite PMI 50.0, 49.5 forecast, 47.0 previous
•French March Services PMI 50.0, 49.5 forecast, 47.0 previous
•French March Services PMI 48.2, 47.8 forecast, 45.6 previous
•German March Composite PMI 57.3, 56.8 forecast, 51.1 previous
•German March Services PMI 51.5, 50.8 forecast, 45.7 previous
•EU March Services PMI 49.6, 48.8 forecast, 45.7 previous
•EU March Markit Composite PMI 53.2, 52.5 forecast, 48.8 previous
•UK March Services PMI 56.3, 56.8 forecast, 56.8 previous
•UK March Composite PMI 56.4, 56.6 forecast, 56.6 previous
Looking Ahead – Economic Data (GMT)
•`12:30 US Imports 260.20B previous
•12:30 US Exports 191.90B previous
•12:30 US Trade Balance -70.50B forecast, -68.20B previous
•12:30 Canada Feb Imports 49.78B previous
•12:30 Canada Feb Exports 51.19B previous
•12:30 Canada Trade Feb Balance 1.00B forecast ,1.41B previous
• 14:00 Canada Mar Ivey PMI n.s.a 63.1 previous
• 14:00 Canada Mar Ivey PMI 60.5 forecast , 60.0 previous
• 14:30 US Crude Oil Inventories -1.436M forecast , -0.876M previous
• 14:30 US Feb Trade Balance -70.50B forecast , -68.20B previous
Looking Ahead – Economic Data (GMT)
•13:00 US Chicago Fed President Evans Speaks
•16:00 US FOMC Member Barkin Speaks
•18:00 US FOMC Meeting Minutes
Fx Beat
EUR/USD: The euro strengthened against dollar on Wednesday after data showed Euro zone business activity expanded in March despite lockdowns. Euro zone business activity bounced back to growth last month, underpinned by a record expansion in manufacturing. IHS Markit’s Services Purchasing Managers’ Index (PMI) rose to 49.6 in March from February’s 45.7, much higher than a flash estimate of 48.8 and only just shy of the 50 mark that separates growth from contraction. The euro was up 0.02% to $1.1760. Immediate resistance can be seen at 1.1901(Daily high), an upside break can trigger rise towards 1.1951 (50%fib).On the downside, immediate support is seen at 1.1840 (38.2%fib), a break below could take the pair towards 1.1807 (5DMA).
GBP/USD: Sterling slipped lower against dollar on Wednesday as profit-taking by traders after a strong first quarter for the British currency pulled it to a week’s low against the dollar. The pound fell on Tuesday, losing 0.6% against the dollar and over 1% against the euro - its worst day against the single currency in five weeks as investors took cash off the table. By 11:30 GMT on Wednesday, the pound was down 0.14% against the dollar at 1.3811, having hit a one-week low of $1.3770 earlier. Immediate resistance can be seen at 1.3869 (38.2%fib), an upside break can trigger rise towards 1.3973(23.6%fib ).On the downside, immediate support is seen at 1.3765 (50%fib), a break below could take the pair towards 1.3680(61.8%fib).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as investors waited for the Federal Reserve’s meeting minutes due later in the session to help determine the future path for the dollar. Market participants also were waiting for the Fed meeting minutes, , for hints about the Fed policymakers view on rising yields. The previous quarter saw a spike in U.S. Treasury yields and the dollar’s strongest rally in years, on rising expectations that accelerating U.S. economic growth and inflation could force the Fed to abandon its pledge to keep interest rates near zero until 2024.Immediate resistance can be seen at 0.9325 (21DMA), an upside break can trigger rise towards 0.9358 (61.8%fib).On the downside, immediate support is seen at 0.9272(50%fib), a break below could take the pair towards 0.9174(38.2%fib).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday as investors stayed on the sidelines ahead of minutes from the Federal Reserve’s last meeting that could offer clues on the central bank’s views on inflation and an economic recovery.Massive fiscal stimulus and swift vaccinations prompted several Fed officials at the meeting last month to project interest rate increases as early as next year, opening up a gap with those who do not see rates rising until 2024 at the earliest. The minutes will be released at 2:00 p.m. ET (1800 GMT). Strong resistance can be seen at 110.14(5DMA), an upside break can trigger rise towards 110.82 (23.6%fib).On the downside, immediate support is seen at 109.54(38.2%fib), a break below could take the pair towards 109.00(Psychological level).
Equities Recap
European stocks hovered near record highs on Wednesday supported by gains in real estate and telecom shares, while optimism over speedy vaccination drives and a weaker pound helped UK equities outperform.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 0.68 percent, Germany's Dax was down by 0.12 percent, France’s CAC was last down by 0.05 percent.
Commodities Recap
Gold prices fell on Wednesday as robust economic data from the United States lifted expectations of a rapid recovery and dampened bullion's appeal, while investors were waiting for minutes from the Federal Reserve's last policy meeting.
Spot gold was down 0.4% to $1,737.09 per ounce by 0946 GMT. U.S. gold futures slipped 0.3% to $1,737.70 per ounce.
Oil prices eased on Wednesday despite prospects for stronger global economic growth as talks to revive a nuclear deal with Iran opens the possibility of an easing of sanctions on its oil exports.
Brent crude futures fell by 36 cents, or 0.6%, to $62.38 a barrel by 0843 GMT while U.S. West Texas Intermediate crude was down 36 cents, or 0.6%, at $58.97.
