Market Roundup
• Canada New Housing Price Index (MoM) (Mar): -0.2%, 0.2% forecast, 0.3% previous.
• US Crude Oil Inventories: 1.925M, -1.900M forecast, -0.913M previous.
• US Cushing Crude Oil Inventories: 0.806M, -1.727M previous.
• US EIA Weekly Distillates Stocks: -3.427M, -2.500M forecast, -3.122M previous.
• US EIA Weekly Refinery Utilization Rates (WoW): -0.5%, -2.4% previous.
• US Gasoline Production: 0.315M, 0.392M previous.
• US Gasoline Inventories: -4.570M, -1.500M forecast, -6.328M previous.
• Australia Judo Bank Services PMI (Apr) 50.3, 46.3 previous.
• Australia Manufacturing & Services PMI (Apr) 50.10, 46.60 previous.
• Australia Judo Bank Manufacturing PMI (Apr) 51.0, 49.8 previous.
•Japan Foreign Bonds Buying -12.8B, 698.2B previous.
•Japan Foreign Investments in Japanese Stocks 2,380.9B,3,941.4B previous.
Looking Ahead Economic Data (GMT)
• 00:00 Japan Manufacturing & Services PMI (Apr) 53.00 previous.
• 00:00 Japan au Jibun Bank Manufacturing PMI (Apr) 51.2 forecast,51.6 previous.
•02:30 Australia Unemployment Rate (Mar) 4.3% previous.
•04:00 New Zealand Credit Card Spending (YoY) (Mar) -1.1% previous.
• Looking Ahead Events And Other Releases (GMT)
• No Events ahead
Currency Forecast
EUR/USD : The euro edged lower on Wednesday as uncertainty over the conflict in the Middle East appeared to persist even after U.S. President Donald Trump extended indefinitely a ceasefire with Iran.Following Trump’s announcement, it was not clear if Iran or Israel, the U.S.' partner in the two-month war, would agree. The prospect of peace talks was also uncertain, while the crucial Strait of Hormuz shipping route remained virtually blocked with three ships reportedly hit by gunfire.Meanwhile, markets also weighed Kevin Warsh's comments at a Senate confirmation hearing, which were interpreted as slightly hawkish. He is the White House's nominee to lead the U.S. Federal Reserve.. Immediate resistance can be seen at 1.1823(50%fib), an upside break can trigger rise towards 1.1900(Psychological level).On the downside, immediate support is seen at 1.1728(61.8%fib), a break below could take the pair towards 1.1658(April 14th low).
GBP/USD: The British pound dipped on Wednesday as markets grappled with continued uncertainty over the Middle East conflict, even after U.S. President Donald Trump indefinitely extended a ceasefire with Iran.It was unclear whether Iran or Israel Washington's ally in the two-month conflict agreed with the extension, and the prospect of peace talks was uncertain as the vital Strait of Hormuz shipping route remained blocked.Meanwhile, British inflation data showed early price pressures linked to the conflict. Consumer price inflation rose to an annual rate of 3.3% in March from 3.0% in February, in line with expectations.The BoE is widely expected to leave rates unchanged when it meets later this month, with markets assigning only about a 10% chance of a hike. Immediate resistance can be seen at 1.3503(38.2%fib), an upside break can trigger rise towards 1.3583(38.2%fib).On the downside, immediate support is seen at 1.3440(50%fib), a break below could take the pair towards 1.3392 (SMA 20).
USD/CAD: The Canadian dollar steadied near a six-week high against its U.S. counterpart on Wednesday as oil prices rose and investors awaited signs of diplomatic progress to end the war in the Middle East.Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway after U.S. President Donald Trump called off attacks with no sign of peace talks restarting.Oil is one of Canada's major exports, which have been disrupted in the past year by hefty U.S. tariffs on critical sectors, such as autos, steel and aluminum. The United States-Mexico-Canada Agreement, a continental trade pact, is set for review by a July 1 deadline.The loonie was trading nearly unchanged at 1.3660 per U.S. dollar . Immediate resistance can be seen at 1.3709(April 20th high), an upside break can trigger rise towards 1.3770(50%fib).On the downside, immediate support is seen at 1.3649 (38.2%fib), a break below could take the pair towards 1.3606(Lower BB)
USD/JPY: The U.S. dollar edged higher on Wednesday on lingering concerns about the ongoing U.S.-Israeli war with Iran. Iran seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway, after Trump called off attacks indefinitely with no sign of peace talks restarting.Markets have been swayed by alternating bouts of optimism that a deal is within reach and fears that the conflict could drag on, causing prolonged disruptions to energy markets.The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.21% to 98.58 The Japanese yen JPY= weakened 0.04% against the greenback to 159.45 per dollar. Immediate resistance can be seen at 159.43(Daily high) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.73(38.2%fib) a break below could take the pair towards 158.07(Lower BB).
Equities Recap
European shares dipped on Wednesday, extending losses for a third straight session, as a fragile U.S.-Iran truce weighed on sentiment, while investors also assessed a raft of regional corporate earnings.
UK's benchmark FTSE 100 closed down by 0.21 percent, Germany's Dax ended down by 0.31 percent, France’s CAC finished the day down by 0.96 percent.
U.S. stocks climbed on Wednesday, sending the S&P 500 and Nasdaq to record closing highs after U.S. President Donald Trump extended the Iran ceasefire, with strong corporate earnings further supporting investor optimism.
Dow Jones closed up by 0.69 percent, S&P 500 closed up by 1.05 percent, Nasdaq settled up by 1.64 percent.
Commodities Recap
Gold rose on Wednesday after dropping to more than a one-week low in the previous session on bargain-hunting even as investors await a possible resumption of U.S.-Iranian peace talks.
Spot gold was up 0.5% at $4,735.65 per ounce by 1:40 p.m. EDT (1740 GMT), after rising 1% earlier in the session. On Tuesday, it recorded its largest daily loss since March 26.
Oil prices settled up by more than $3 on Wednesday after a surprise gasoline and distillate stock draw in the U.S., and on reports of gunfire attacks on at least three container ships in the Strait of Hormuz amid a lack of progress in peace talks between the U.S. and Iran.
Brent crude futures settled up $3.43, or 3.48%, at $101.91 a barrel. West Texas Intermediate futures settled up $3.29, or 3.67%, to $92.96. Both benchmarks climbed about 3% on Tuesday.
