Market Roundup
•Canada Labor Productivity (QoQ) (Q1) -0.3%,-0.2% forecast,0.4% previous
•Canada BoC Interest Rate Decision 4.75%,4.75% forecast,5.00% previous
•US May S&P Global Composite PMI 54.5,54.4 forecast,51.3 previous
•US May Services PMI 54.8,54.8 forecast,51.3 previous
•US May ISM Non-Manufacturing Business Activity 61.2 , 50.9 previous
•US May ISM Non-Manufacturing Prices 58.1, 59.2 previous
•US May ISM Non-Manufacturing New Orders 54.1,52.2 previous
•1US May ISM Non-Manufacturing Employment 47.1,45.9 previous
•US May ISM Non-Manufacturing PMI 53.8,51.0 forecast, 49.4 previous
•US Crude Oil Inventories 1.233M,-2.100M forecast, -4.156M previous
Looking Ahead Economic Data(GMT)
• 01:00 Australia Trade Balance 5.370B forecast, 5.024B previous
• 01:00 Australia Home Loans (MoM) 1.2% forecast, 2.8% previous
• 01:00 Australia Invest Housing Finance (MoM) 3.8% previous
• 01:00 Australia Building Approvals (MoM) 1.9% previous
• 01:00 Australia Exports (MoM) 0.1% previous
• 01:00 Australia Imports (MoM) 4.2% previous
• 01:00 Australia Private House Approvals -1.6% previous,3.8% previous
Looking Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Wednesday after data showed the services sector in the world's largest economy rebounded in May after contracting the month before, highlighting uncertainty surrounding the expected start of the Federal Reserve's easing cycle later this year.The Institute for Supply Management said its nonmanufacturing purchasing managers index rose to 53.8 last month from 49.4 in April. May's reading, the highest since August, overshot estimates of a 50.8 reading. Investors are now looking to the European Central Bank meeting on Thursday, in which the bank is widely expected to lower its deposit rate from a record high of 4%.Immediate resistance can be seen at 1.0919(23.6%fib), an upside break can trigger rise towards 1.0940(Higher BB).On the downside, immediate support is seen at 1.0877(38.2% fib), a break below could take the pair towards 1.0848(50% fib).
GBP/USD: Sterling declined versus the dollar on Wednesday after data showed US services sector activity rebounded in May.The U.S. services sector snapped back into growth mode in May after a short-lived contraction in the prior month, with a measure of business activity improving by the most in three years, according to a survey published on Wednesday that may buttress the Federal Reserve's wariness of a shift to interest rate cuts. ISM said its non-manufacturing purchasing managers index rose to 53.8 last month from 49.4 in April. The reading in May, the highest since last August, topped the estimates of the 59 economists in a Reuters poll . Immediate resistance can be seen at 1.2817 (23.6%fib), an upside break can trigger rise towards 1.2856(38.2% fib).On the downside, immediate support is seen at 1.2734(38.2%fib), a break below could take the pair towards 1.2668(50% fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday after Bank of Canada trimmed its key policy rate.The Bank of Canada (BoC) trimmed its key policy rate by 25 basis points on Wednesday, the first G7 country to do so, in a widely expected move that will ease pressure on highly indebted consumers, but indicated further easing would be gradual and dependent on data.Macklem stressed the timing of the next cut would depend on whether inflation continued its downward trajectory and the economy evolved in line with the bank's expectations. Some economists predicted the BoC would cut again in July even though financial markets had priced in a 39% chance of a cut to 4.50% next month. Canadian dollar firmed 0.11% to 1.3679 per U.S. dollar after the rate cut . Immediate resistance can be seen at 1.3711 (38.2% fib), an upside break can trigger rise towards 1.3758 (5DMA).On the downside, immediate support is seen at 1.3644(38.2% fib), a break below could take the pair towards 1.3577 (50% fib).
USD/JPY: The U.S. dollar steadied against yen on Wednesday as investors digested US economic data. The Institute for Supply Management said its nonmanufacturing purchasing managers index rose to 53.8 last month from 49.4 in April. May's reading, the highest since August, overshot estimates of a 50.8 reading.Private payrolls increased by 152,000 jobs last month after rising by a downwardly revised 188,000 in April, the ADP Employment report showed. Economists polled by Reuters had forecast private employment rising 175,000 last month.The Federal Reserve's next policy meeting is June 11-12, when it is widely expected to leave rates unchanged. The Fed will also hold a policy meeting in late July, followed by its meeting on Sept. 17-18.A majority of forecasters in a Reuters poll expect the Fed to cut its key interest rate in September, followed by one more cut this year .Strong resistance can be seen at 156.77(23.6%fib), an upside break can trigger rise towards 157.69(Higher BB).On the downside, immediate support is seen at 154.90(38.2% fib), a break below could take the pair towards 153.30 (50%fib).
Equities Recap
European shares gained on Wednesday, led by technology stocks including Dutch semiconductor equipment maker ASML, with focus shifting to the European Central Bank's key rate decision later this week.
UK's benchmark FTSE 100 closed up by 0.18 percent, Germany's Dax ended up by 0.89 percent, France’s CAC finished the day up by 0. 87 percent.
The S&P 500 and Nasdaq indexes hit record closing highs on Wednesday, powered mainly by technology stocks as markets digested economic data that could support a much-expected start to the Federal Reserve's policy easing cycle.
Dow Jones closed up by 0.25 percent, S&P 500 ended up by 1.18 percent, Nasdaq finished the day up by 1.95 percent.
Commodities Recap
Gold for June delivery jumped $28.60 or 1.2 percent to $2,354.10 an ounce after slumping $21.10 or 0.9 percent to $2,235.50 an ounce during Tuesday's session.
Oil prices climbed 1% on Wednesday, rebounding from four-month lows, as hopes of an interest rate cut by the U.S. Federal Reserve in September outweighed demand concern after data showed builds in U.S. crude and fuel stocks.
Brent crude futures settled 89 cents higher, or 1.2%, at $78.41 a barrel, while U.S. West Texas Intermediate crude futures climbed 82 cents, or 1.1%, to $74.07.
