Market Roundup
• Japan Foreign Bonds Buying 199.7B,382.5B forecast, 00:50 previous
•Japan Foreign Investments in Japanese Stocks 479.4B,-785.2B previous
Looking Ahead Economic Data (GMT)
•01:30 Australia Full Employment Change (May) -10.7K,49m previous
•01:30 Australia Unemployment Rate (May) 4.4%, 4.5% previous
•01:30 Australia Employment Change (May) 31.2K, -18.6K previous
06:00 Japan Coincident Indicator (MoM) (Apr) 1.1% forecast, 0.2% previous
06:00 Japan Leading Index (MoM) (Apr) 0.5% forecast, 0.8% previous
06:00 Japan Leading Index (MoM) (Apr) 0.5% forecast, 0.8% previous
06:00 Japan Leading Index (Apr) 115.9 forecast, 114.0 previous
Looking Ahead Economic Data (GMT)
•No data ahead
Currency Summaries
EUR/USD : The euro edged lower on Wednesday as investors sought shelter from a tech stock selloff and prepared for rate hikes from the Federal Reserve.Stock market volatility continued after a broad selloff of technology and semiconductor sectors dragged global shares lower, sparking safe-haven demand for the dollar. Meanwhile, expectations of a U.S. rate hike continued to build with Fed officials sounding increasingly hawkish as the economy remains strong. Markets are pricing in a 36% chance of a hike at the July meeting, up from 8.5% a week ago, according to CME FedWatch. For September, the chance of a rate rise has risen above 70% from 29.1%.. Immediate resistance can be seen at 1.1487(Daily high), an upside break can trigger rise towards 1.1577(38.2%fib).On the downside, immediate support is seen at 1.1351(Daily low), a break below could take the pair towards 1.1329(Lower BB).
GBP/USD: The pound dipped on Wednesday as dollar firmed as markets brace for anticipated rate hikes from the Federal Reserve this year.Market expectations of a rate hike have increased since the Fed's policy announcement last week, with recent comments from some officials signaling a focus on inflation as the overall economy appears to be on stable footing. Continued uncertainty around the tentative peace deal between the U.S. and Iran also helped buoy the dollar, although oil prices fell to their lowest level since before the war began on signs more oil tankers were poised to move out of the Strait of Hormuz . Immediate resistance can be seen at 1.3326(38.2%fib), an upside break can trigger rise towards 1.3373(SMA 20).On the downside, immediate support is seen at 1.3163(23.6%fib), a break below could take the pair towards1.3135(Lower BB).
USD/CAD: The Canadian dollar weakened to a fourteen month low against the greenback on Thursday after minutes from the Bank of Canada's recent policy meeting did little to reverse a wider gap between U.S. and Canadian interest rates. The Bank of Canada’s governing council agreed to remain flexible in its policy approach to address potential risks from new U.S. trade restrictions, higher energy prices, or a combination of both, according to minutes from its June 10 meeting, where rates were left unchanged at 2.25%..The U.S. dollar extended its recent advance against major peers, supported by the Federal Reserve’s hawkish tone and safe-haven flows amid a pullback in technology stock.The price of oil, one of Canada's major exports, was down 4.1% at $70.20 a barrel as signs emerged that more oil tankers are set to move out of the Strait of Hormuz, easing supply concerns. Immediate resistance can be seen at 1.4265(23.6% fib), an upside break can trigger rise towards 1.4295(Higher BB).On the downside, immediate support is seen at 1.4152(Jan 22nd low), a break below could take the pair towards 1.4109(38.2%fib).
USD/JPY: The dollar edged higher against yen on Wednesday as the yen weakened despite repeated verbal intervention from officials offering little support to the currency. Japanese officials’ verbal warnings have failed to ease pressure on the yen, with authorities now planning to improve management of their $1.3 trillion FX reserves to support potential intervention. Markets are increasingly skeptical about Tokyo’s ability to carry out further currency intervention after a record-sized operation nearly two months ago significantly depleted foreign exchange reserves. Some Bank of Japan board members backed additional rate hikes to bring policy closer to neutral levels, according to a summary of opinions from the June policy meeting released Wednesday.. Immediate resistance can be seen at 161.62(38.2%fib) an upside break can trigger rise towards 162.00(Psychological level) .On the downside, immediate support is seen at 161.21(Daily low) a break below could take the pair towards 160.13(SAM 20).
Equities Recap
European shares were muted on Wednesday as investors assessed developments in the U.S.-Iran negotiations, while defence group Rheinmetall dropped after Germany scrapped a landmark frigate programme.
UK's benchmark FTSE 100 closed up by 0.31percent, Germany's Dax ended up by 0.62 percent, France’s CAC finished the day down by 0.54percent.
The Nasdaq and S&P 500 closed lower on Wednesday, dragged by tech stocks on nagging concerns about high-flying valuations, but falling crude prices boosted airlines and other travel stocks and the Dow finished higher.
Dow Jones closed up by 0.35 % percent, S&P 500 closed down by 0.09 % percent, Nasdaq settled down by 0.43% percent.
Commodities Recap
Spot gold prices slipped below a key psychological level of $4,000 per ounce level for the first time since November 2025 on Wednesday, under pressure from a firmer U.S. dollar and growing expectations that interest rates will remain elevated.
The benchmark global oil price declined more than $3 on Wednesday to settle at its lowest level since before the start of the Iran war as supply concerns eased with more stranded oil tankers exiting the Strait of Hormuz.
Brent crude futures closed $3.34, or 4.3%, lower at $73.74 a barrel, while U.S. West Texas Intermediate settled $2.87, or 3.9%, lower at $70.34 a barrel.
