Market Roundup
• US ADP Employment Change (Apr): 26.00K, 15.25K previous.
• Canada Reserve Assets Total (Mar): 126.8B, 128.1B previous.
• US Durable Goods Orders MoM (Feb): -1.4%, -1.1% forecast, -0.5% previous.
• US Core Durable Goods Orders MoM (Feb): 0.8%, 0.5% forecast, 0.3% previous.
• US Durables Ex Defense MoM (Feb): -1.2%, 0.2% previous.
• US Goods Orders Non-Defense ex Air MoM (Feb): 0.6%, -0.4% previous.
• US Redbook YoY: 7.6%, 6.9% previous.
• France 12-Month BTF Auction: 2.694%, 2.660% previous.
• France 3-Month BTF Auction: 2.253%, 2.238% previous.
• France 6-Month BTF Auction: 2.509%, 2.407% previous.
•Canada Ivey PMI (Mar): 49.7, 55.9 forecast, 56.6 previous.
•US Atlanta Fed GDPNow (Q1): 1.3%, 1.6% forecast, 1.6% previous.
•Canada Ivey PMI NSA (Mar): 56.5, 56.3 previous.
Looking Ahead Economic Data (GMT)
• 03:00 New Zealand RBNZ Interest Rate Decision 2.25% forecast,2.25%us
Looking Ahead Events And Other Releases (GMT)
•03:00 New Zealand RBNZ Rate Statement
•04:00 New Zealand RBNZ Press Conference
Currency Forecast
EUR/USD : The euro rose higher against dollar as early signs of a pause in hostilities in the Middle East eased worries about rising energy costs and inflation.U.S. President Donald Trump said on Tuesday he had agreed to a two-week ceasefire with Iran, less than two hours before a deadline he had set for Tehran to reopen the Strait of Hormuz. Investors have been laser-focused on the U.S.-Israeli war with Iran, which is now in its sixth week, as wild volatility in oil prices increased concerns about inflation and a potential global economic slowdown. Immediate resistance can be seen at 1.1560(38.2%fib), an upside break can trigger rise towards 1.1629 (April 1st high).On the downside, immediate support is seen at 1.1417(SMA 20), a break below could take the pair towards 1.1401(Lower BB).
GBP/USD: The British pound rose higher Tuesday as investors cheered two-week ceasefire in the Middle East.U.S. President Donald Trump said he agreed to suspend bombing and attacks on Iran for two weeks and that a long-term peace agreement was in progress.Trump had set a late Tuesday deadline for a deal with Iran to be reached, threatening to destroy every bridge and power plant in the country if Iran did not reopen the Strait of Hormuz. Iran had said it would retaliate against U.S. allies in the Gulf.The six-week conflict has sent oil prices surging, stoked worries of inflation and upended the global rates outlook with countries and companies scrambling to adjust to the energy shock... Immediate resistance can be seen at 1.3456(SMA 20), an upside break can trigger rise towards 1.3497(50%fib).On the downside, immediate support is seen at 1.3353(38.2%fib), a break below could take the pair towards 1.3287(Daily low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday but the move was restrained after the release of downbeat domestic data and as investors awaited a U.S. deadline for Iran to end its blockade of Gulf oil.The price of oil , one of Canada's major exports, settled 0.5% higher at $112.95 a barrel. Investors globally have worried that higher energy prices could raise inflation and upend economic growth.Canadian economic activity contracted in March for the first time in four months as a measure of price pressures increased, Ivey Purchasing Managers Index data showed. The seasonally adjusted index fell to 49.7 last month from 56.6 in February.Canada's employment report for March, due on Friday, could offer additional clues on the state of the domestic economy. Economists expect a jobs gain of 15,000 after the economy shed 84,000 jobs in February.Immediate resistance can be seen at 1.3860(38.2%fib), an upside break can trigger rise towards 1.3899(Daily high).On the downside, immediate support is seen at 1.3811 (SMA20), a break below could take the pair towards 1.3788(50%fib)
USD/JPY: The U.S. dollar dipped against yen after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran. Trump had earlier threatened widespread attacks on Iran's civilian infrastructure. Markets turned risk-on after the announcement, less than two hours before his deadline for Tehran to reopen the Strait of Hormuz expired.The yen strengthened 0.6% against the greenback to 158.68 yen per dollar. The U.S. dollar index, which measures the greenback's strength against a basket of six currencies, was down 1.0% at 98.97, a two-week low. Immediate resistance can be seen at 159.23(SMA 20) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.61(38.2%fib) a break below could take the pair towards 158.04(Lower BB).
Equities Recap
European stocks moved higher on Tuesday as investors returned from the Easter break and continued to assess developments in the Middle East.
UK's benchmark FTSE 100 closed down by 0.84percent, Germany's Dax ended down by 1.04 percent, France’s CAC finished the day down by 0.67 percent.
U.S. stocks ended mixed on Tuesday as investors monitored signs of progress in negotiations ahead of President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz.
Dow Jones closed down by 0.18 percent, S&P 500 closed up by 0.08 percent, Nasdaq settled up by 0.10 percent.
Commodities Recap
Oil prices plunged, bonds rallied, and stocks surged on Wednesday as a two-week Middle East ceasefire sparked a relief rally, raising hopes for the resumption of oil and gas flows through the Strait of Hormuz.
U.S. crude futures fell around 16.5% to $94 a barrel, S&P 500 futures leapt over 2%and the dollar fell broadly, having been the haven of choice for investors during the tumult.
Gold prices were modestly higher while silver fell as caution prevailed. Spot rose 0.61% to $4,675.82 an ounce while spot silver fell 1.35% to $71.81 an ounce.
