Market Roundup
•US Mar Services PMI 51.7 ,51.7 forecast,52.3 previous
•US Mar S&P Global Composite PMI 52.1, 52.2 forecast,52.5 previous
•US Mar SM Non-Manufacturing New Orders 54.4 ,56.1 previous
•US Mar ISM Non-Manufacturing PMI 51.4 ,52.8 forecast,52.6 previous
•US Mar ISM Non-Manufacturing Business Activity 57.4 ,56.7 forecast,57.2 previous
•US Mar ISM Non-Manufacturing Prices 53.4 ,58.6 previous
•US Mar ISM Non-Manufacturing Employment 48.5 ,48.0 previous
•US Gasoline Production 0.767M ,-0.435M previous
•US Distillate Fuel Production -0.208M ,0.124M previous
•US Cushing Crude Oil Inventories -0.377M ,2.107M previous
•US Gasoline Inventories -0.820M forecast,1.299M previous
•US Crude Oil Inventories 3.210M ,-0.300M forecast,3.165M previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Foreign Investments in Japanese Stocks -891.4B previous
•23:50 Japan Foreign Bonds Buying 762.3B previous
•00:30 Australia Retail Sales (MoM) 0.3% forecast,1.1% previous
•00:30 Australia Feb Building Approvals (MoM) 3.0% forecast,-1.0% previous
Looking Ahead Events And Other Releases (GMT)
• 23:50 Australia RBA Assistant Governor Jones Speaks
Currency Summaries
Currency Summaries
EUR/USD: The euro rebounded on Wednesday as dollar fell following Federal Reserve Chair Jerome Powell's reaffirmation that recent reports on job increases and unexpectedly high inflation don't substantially alter the overarching economic policy outlook for the year. Powell said that "if the economy evolves broadly as we expect," he and his Fed colleagues largely agree that a lower policy interest rate will be appropriate "at some point this year. Investors still expect a first rate cut at the Fed's June 11-12 policy meeting, even as stronger recent economic data has sown investor doubts about that outcome. Data released on Wednesday showing a surprise fall in euro zone inflation last month, and solidifying the case for the European Central Bank to start lowering borrowing costs, did little to shake the common currency, as markets were already confident of a June ECB rate cut. Immediate resistance can be seen at 1.0797(9EMA), an upside break can trigger rise towards 1.0821(23.6%fib).On the downside, immediate support is seen at 1.0760 (38.2%fib), a break below could take the pair towards 1.0717 (50%fib).
GBP/USD: The pound held steady against the dollar on Wednesday, having rebounded from the seven-week lows against the U.S. currency it hit at the start of the week. The British currency's moves against the dollar have been comparatively more dramatic, and the pound dropped to $1.254 on Monday matching Friday's level, the lowest since mid February.That was on the back of U.S. economic data that caused markets to pare back the amount of rate cuts they expect by the U.S. Federal Reserve this year, while bringing forward expectations of the first Bank of England rate cut. Markets currently are pricing a 62% chance of a June Fed rate cut, according to CME's Fedwatch tool, and roughly a similar chance of a cut then by the Bank of England. Immediate resistance can be seen at 1.2658(38.2%fib), an upside break can trigger rise towards 1.2697(23.6%fib).On the downside, immediate support is seen at 1.2630(50%fib), a break below could take the pair towards 1.2600(61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday as the greenback gave back some recent broad-based gains and investors turned attention to a Bank of Canada policy decision next week. The U.S. dollar , opens new tab fell against a basket of major currencies as U.S. services industry growth slowed further in March and a measure of prices paid by businesses for inputs dropped to a four-year low, which bodes well for the inflation outlook. Adding to support for the Canadian currency, the price of oil, one of Canada's major exports, climbed to its highest level since October as investors worried about supply disruptions from a worsening geopolitical landscape. U.S. crude oil futures were up 0.9% at $85.91 a barrel. The loonie was trading 0.3% higher at 1.3525 to the U.S. dollar, or 73.94 U.S. cents, after trading in a range of 1.3512 to 1.3588. Immediate resistance can be seen at 1.3512(5DMA), an upside break can trigger rise towards 1.3596 (23.6%fib).On the downside, immediate support is seen at 1.3512(38.2% fib), a break below could take the pair towards 1.3449(50% fib).
USD/JPY: The dollar edged higher on Wednesday but gains were limited as fears of intervention by Japanese officials limited gains. While the BOJ raised rates for the first time in 17 years, its policymakers' commitment to go slow on further increases have hammered the yen especially given the still-wide Japan-U.S. yield gap.Japanese officials have carried on with their efforts to talk up the currency for days, with the threat of an intervention presenting stiff resistance for the U.S. dollar. The Japanese yen was last at 151.7 per dollar, little recovered from last week's slump to 34-year lows of 151.975, as the Bank of Japan's historic policy shift only served to underscore its outlier status.Strong resistance can be seen at 151.71(23.6%fib), an upside break can trigger rise towards 152.86(Higher BB).On the downside, immediate support is seen at 151.62 (Daily low), a break below could take the pair towards 150.46(38.2%fib).
Equities Recap
European stocks gained on Wednesday after a softer-than-expected U.S. services sector data, while investors also assessed softening euro zone inflation data that cemented the case for European Central Bank interest rate cuts.
UK's benchmark FTSE 100 closed up by 0.03 percent, Germany's Dax ended up by 0.50 percent, France’s CAC finished the day up by 0. 29 percent.
The S&P 500 and Nasdaq closed higher on Wednesday after data showing the U.S. services industry growth slowed further in March, but the advance was limited after Federal Reserve Chair Jerome Powell indicated a cut in interest was still not in sight.
Dow Jones closed down by 0.11percent, S&P 500 ended up by 0.11 percent, Nasdaq finished the day up by 0.23 percent.
Commodities Recap
Gold prices raced to a record high yet again on Wednesday, after Federal Reserve Chair Jerome Powell reiterated that recent readings on job gains and higher-than-expected inflation do not materially change the overall picture of economic policy this year.
Spot gold rose 0.5% to $2,292.31 per ounce as of 1:43 p.m. EDT (1743 GMT) after hitting a record high of $2,294.99 earlier in the session.U.S. gold futures settled 1.5% higher at $2,315.
Oil prices settled at their highest levels since October on Wednesday on investor concerns about supply disruptions due to conflict in the Middle East, although a jump in U.S. crude oil inventories capped the gains.
Brent futures rose 43 cents, or 0.5%, to settle at $89.35 a barrel, and U.S. West Texas Intermediate futures gained 28 cents, or 0.3%, to $85.43 a barrel
