Market Roundup
•Italian Apr Consumer Confidence 95.2, 96.9 forecast,96.5 previous
•German Apr Ifo Business Climate Index 89.4,88.9 forecast,87.8 previous
•German Apr ZEW Expectations 17.6,11.5 previous
•Italian Apr Business Confidence 87.6,89.5 forecast,88.6 previous
•German Apr Current Assessment 88.9, 88.7 forecast,88.1 previous
•German Apr German Business Expectations 89.9,88.9 forecast,87 previous
•US Mar Goods Orders Non Defense Ex Air (MoM) 0.2% forecast,0.7% previous
•Canada Feb Retail Sales (MoM) -0.1% ,0.1% forecast,-0.3% previous
•US Mar Core Durable Goods Orders (MoM) 0.2%, 0.3% forecast,0.5% previous
•US Mar Durables Excluding Defense (MoM) 2.3%,2.1% previous
•US Mar Durable Goods Orders (MoM) 2.6%,2.5% forecast,1.3% previous
•Canada Feb Core Retail Sales (MoM) -0.3%,0.0% forecast,0.5% previous
Looking Ahead Economic Data(GMT)
•13:00 Belgium Apr NBB Business Climate -9.6 forecast,-10.4 previous
•14:30 US Crude Oil Imports-1.991M previous
•14:30 US Distillate Fuel Production -0.038M previous
•14:30 US Gasoline Production-0.025M previous
•14:30 US Cushing Crude Oil Inventories 0.033M previous
Looking Ahead Events And Other Releases(GMT)
•13:15 ECB McCaul Speaks
•14:00 ECB's Schnabel Speaks
• 17:30 Canada BOC Summary of Deliberations
Currency Forecast
EUR/USD: The euro eased slightly on Wednesday despite stronger German business as investors assessed interest rate cut prospect. German business morale improved more than expected in April, a survey showed on Wednesday, boosting hopes that the worst may be over for Europe's biggest economy although any recovery is not expected to be strong. The Ifo institute said its business climate index rose to 89.4 compared with a reading of 88.8 forecast by analysts in a poll. In March, the reading was revised slightly to 87.9. The Ifo survey showed overall morale was boosted by companies reporting that they were more satisfied with their current business situation, while future expectations also brightened significantly. The European Central Bank is expected to cut rates in June. The euro was last down 0.11% at $1.0688 ,It struck a five-month low of $1.0601 last week.Immediate resistance can be seen at 1.0717(38.2% fib), an upside break can trigger rise towards 1.0762(50% fib).On the downside, immediate support is seen at 1.0655(23.6% fib), a break below could take the pair towards 1.0600 (23.6% fib).
GBP/USD: The pound eased on Wednesday, surrendering some gains from its biggest one-day rally in four months the previous day, after a softer reading of monthly U.S. business activity battered the dollar.The pound has come under pressure this week, having hit its lowest since November on Monday, after Bank of England officials suggested the central bank was becoming more confident that UK inflation is subsiding, which would indicate that interest rates might fall more quickly than the market currently expects.Sterling was down 0.1% at $1.2435, having risen 0.8% on Tuesday, the most in one day since mid-December. Immediate resistance can be seen at 1.2474 (50%fib), an upside break can trigger rise towards 1.2504(April 15th high).On the downside, immediate support is seen at 1.2409 (38.2 % fib), a break below could take the pair towards 1.2234 (23.6 % fib).
USD/CHF: The dollar steadied against the Swiss franc on Wednesday as dollar regained footing investors awaited key U.S. economic data for interest-rate clues. Investors are now looking forward to the U.S. gross domestic product data due on Thursday and the Personal Consumption Expenditures report due on Friday for fresh clues on the Federal Reserve's rate trajectory. Economists polled expect the data to show that core PCE prices rose by 0.3% month-on-month in March. The dollar index – which measures the currency against six major peers including the euro, sterling and yen was last up 0.2% at 105.84 after earlier touching the lowest since April 12 at 105.59. Immediate resistance can be seen at 0.9163 (23.6% fib), an upside break can trigger rise towards 0.9200 (Psychological level).On the downside, immediate support is seen at 0.9111(EMA 9), a break below could take the pair towards 0.9088(50% fib).
USD/JPY: The U.S. dollar rose past 1.55 level against yen against on Wednesday but gains were limited on intervention fears from the Japanese authorities to prop up their currency. The decline in the yen comes after a string of strong U.S. inflation data pushed the dollar to five-month highs and reinforced expectations that the Federal Reserve is unlikely to be in a rush to cut interest rates this year.The yen's slide against the dollar has revived anticipation of currency intervention. Japanese Finance Minister Shunichi Suzuki and other policymakers have said they are watching currency moves closely and will respond as needed. The dollar was last up 0.2% at 154.98 yen, its strongest since June 1990.Strong resistance can be seen at 155.00 (Psychological level), an upside break can trigger rise towards 155.13 (Daily high).On the downside, immediate support is seen at 154.34 (5 EMA), a break below could take the pair towards 153.63 (38.2% fib).
Equities Recap
European shares rose on Wednesday as the technology sub-index got a boost after ASM International's strong forecast, although gains were limited by a drop in banking stocks following a disappointing earnings report from Swedish lender Handelsbanken.
At (GMT 13:21 ),UK's benchmark FTSE 100 was last trading up at 0.35 percent, Germany's Dax was down by 0.01 percent, France’s CAC finished was up by 0.30 percent.
Commodities Recap
Gold prices fell for a third session on Wednesday, partly because hedge funds reduced their holdings amid easing concerns of a major escalation of the Middle East crisis, while investors awaited key U.S. economic data for interest-rate clues.
Spot gold fell 0.3% to $2,315.34 per ounce by 1153 GMT, after having hit its lowest since April 5 in the previous session. U.S. gold futures fell 0.6% at $2,328.60.
Brent crude oil prices steadied around $88 a barrel on Wednesday after rallying in the previous session on a surprise fall in U.S. crude stocks and a drop in business activity in the world's largest oil consumer.
Brent crude futures were down 12 cents, or 0.14%, to $88.30 a barrel by 1158 GMT, while U.S. West Texas Intermediate crude futures had lost 23 cents, or 0.28%, to $83.13.
