Market Roubndup
• US existing home sales +5.1% in March; supply rises 5.9%, Median house price up 5.7% from year ago.
• Britain's EU referendum campaign: "Remain" ahead by 10 points (49 to 39%) - Ipsos MORI poll.
• US regulators query banks on Brexit contingency plans; ask about IT, staff & their European regulatory arrangements.
• Bund yields fall week long-term inflation measure back below 1.40%, 5Y/5Y forward rate lowest in over 6-wks.
• Russia's Novak says no oil meeting in Russia in May -RIA - Reuters News.
• U.S. crude stockpiles rise 2.1% vs 2.4% foecast, distillates post surprise drawdown.
Looking Ahead - Economic Data (GMT)
• 23:50 Japan Foreign Bond Investment w/e -1175.3b-previous
• 23:50 Japan Foreign Invest JP Stock w/e 146.5b-previous
Looking Ahead - Events, Other Releases (GMT)
• No Significant Data
Currency Summaries
EUR/USD is likely to find support at 1.1270 levels and currently trading at 1.1294 levels. The pair has made session high at 1.1366 and hit lows at 1.1287 levels. US dollar gained against euro on Wednesday on fears that comments from the European Central Bank on Thursday could hurt the European currency, while some riskier commodity currencies remained near multi-month highs on gains in oil prices and reduced worries over the global economy. The euro eased from a one-week high against the dollar of $1.1386 touched earlier in the session and was last down 0.55 percent at $1.1293 ahead of the ECB meeting. Investors focused on next week’s Fed meeting, which will be watched for any new indications on when the U.S. central bank is next likely to raise rates.The Fed is seen as unlikely to hike rates this month with market-based indicators also showing low expectations, of only around 11 percent, of a rate increase at its June meeting.
GBP/USD is supported in the range of 1.4300 currently trading at 1.4333 levels. It reached session high at 1.4412 and hit low at 1.4327 levels. British pound declined against US dollar on Wednesday after data showed U.S. home resales rose more than expected in March, pointing to a continued recovery in the housing market, despite signs of sluggish first-quarter economic growth. Investors have been selling the pound on worries that Brexit would cause huge damage to a country with a trade deficit of 12 billion pounds, its widest in eight years, and a current account deficit that soared to 7 percent of GDP in the final quarter of 2015. Meanwhile, U.S. home resales rebounded more than expected in March as supply improved, suggesting the housing market recovery remained intact despite signs that economic growth probably stalled in the first quarter.
USD/CAD is supported at 1.2585 levels and is trading at 1.2654 levels. It has made session high at 1.2660 and lows at 1.2592 levels. The Canadian dollar rose to hit fresh 9-month high against US dollar on Wednesday as the prices of oil gained further ground. Oil prices rose 4 percent on Wednesday after a smaller-than-expected build in U.S. crude inventories offset glut worries. Oil prices fell as investor focus returned to worries about oversupply after Kuwaiti workers ended a three-day strike that had halved the nation's crude output. Meanwhile, the value of Canadian wholesale trade sank by a much larger-than-expected 2.2 percent in February, pulled down in part by lower machinery and equipment sales, Statistics Canada data indicated on Wednesday. The currency's strongest level of the session was C$1.2646, while its weakest was C$1.2731. On Tuesday, the loonie touched its strongest since July 6 at C$1.2630.
AUD/USD is supported around 0.7725 levels and currently trading at 0.7791 levels. It hit session high at 0.7820 and made session lows at 0.7784 levels. The Australian dollar slightly dipped towards lower against US dollar on Wednesday as the Australian dollar stood near 10-month peaks against dollar on Wednesday after fading concerns about global growth and rising metal prices sparked demand for carry trades. Investors were awaiting the outcome of the European Central Bank's (ECB) policy meeting on Thursday with expectations it will stand pat following last month's bold easing moves. The Australian dollar eased slightly from a 10-month high of $0.7830 hit earlier in the session, but last hovered near that level at $0.7800.
Equities Recap
European shares rose on Wednesday, helped by a late rally in crude oil prices and gains among banking stocks
UK's benchmark FTSE 100 closed up 0.65 percent, the pan-European FTSEurofirst 300 ended the day up by 0.60 percent, Germany's DAX ended up by 0.83 percent, France’s CAC finished the day up by 0.74 percent.
Wall Street ended less than 2 percent short of a record-high close on Wednesday as a rebound in oil prices added to optimism sparked by a raft of earnings reports.
Dow Jones closed up by 0.93 percent, S&P 500 ended up by 0.96 percent, Nasdaq finished the day up by 0.79 percent.
Treasuries Recap
U.S. Treasury yields rose on Wednesday to three-week highs, as oil and stock prices gained, reducing demand for safe-haven bonds, and as new sales of corporate debt also weighed on the market.
Benchmark 10-year note prices fell 20/32 to yield 1.85 percent, up from 1.78 percent on Tuesday. Yields had held between 1.81 percent and 1.69 percent since the beginning of April.
Commodities Recap
Gold steadied on Wednesday as a firmer tone to the U.S.dollar held gains in check, though silver extended gains to an 11-month peak, boosted by technical momentum and perceptions it is undervalued versus gold.
Spot gold was up 0.2 percent at $1,252.96 an ounce at 2:32 p.m. EDT (1832 GMT), off a one-week high of $1,258.00 touched overnight. U.S. gold futures for April delivery settled up 20 cents an ounce at $1,253.20
Oil prices rose 4 percent on Wednesday after a smaller-than-expected build in U.S. crude inventories offset glut worries stirred by the end of a Kuwaiti strike, and as oil bulls bet that major crude producers would meet again to try to curtail output.
Brent's front-month contract settled up $1.77, or 4 percent, at $45.80 a barrel. It had fallen to a session low of $42.81.
U.S. crude's front-month contract, May, which expired at Wednesday's settlement, finished up $1.55, or 3.8 percent, at $42.63
