Market Roundup
•Canada Feb Foreign Securities Purchases by Canadians 24.19B, -7.59B previous
•Canada Feb Foreign Securities Purchases -8.78B,10.10Bforecast,8.88B previous
•US Gasoline Production-0.025M, -0.538M previous
•US Distillate Fuel Production -0.038M , 0.033M previous
•US EIA Weekly Distillates Stocks-2.760M,1.659M previous
•US Crude Oil Inventories 2.735M,1.600M forecast, 5.841previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Mar Unemployment Rate 3.9% forecast, 3.7% previous
•01:30 Australia Mar Reserve Assets Total 92,605.0B previous
•01:30 Australia NAB Quarterly Business Confidence -6 previous
•01:30 Australia Mar Participation Rate 66.7% previous
•01:30 Australia Mar Employment Change 7.2K forecast,116.5K previous
•01:30 Australia Mar Full Employment Change 78.2K previous
Looking Ahead Events And Other Releases(GMT)
•01:30 BoJ Board Member Noguchi Speaks
•01:30 Australia RBA Bulletin
Currency Summaries
EUR/USD: The euro rebounded against dollar on Wednesday as investors digested Eurozone inflation data. Euro zone inflation slowed across the board last month, reinforcing expectations for a European Central Bank interest rate cut in June, even as rising energy costs and a weak euro cloud the outlook, final data from Eurostat showed on Wednesday. Inflation in the 20 nations sharing the euro currency slowed to 2.4% last month from 2.6% in February, in line with a preliminary estimate released earlier this month. Inflation has fallen quickly over the past year, opening the way for interest rate cuts starting in June, even if the next few months are likely to bring choppy price growth data and a drawn-out return to the 2% target. The euro rose 0.5% to $1.0667. Immediate resistance can be seen at 1.0665(38.2%fib), an upside break can trigger rise towards 1.0698(50%fib).On the downside, immediate support is seen at 1.0618 (23.6%fib), a break below could take the pair towards 1.0584 (Oct 24th 2023 low).
GBP/USD: Sterling edged higher against the dollar on Wednesday after UK inflation data suggested less monetary easing by the Bank of England (BoE).British consumer price inflation slowed by less than expected to a two-and-a-half-year low of 3.2% in annual terms in March, down from a 3.4% increase in February.The dollar dipped but was still within striking distance of its 5-1/2-month high after Federal Reserve officials reiterated U.S. interest rates are likely to stay higher for longer. The pound was last up 0.35% against the dollar at $1.24. It was up 0.16% at 85.30 pence per euro, after hitting its highest level since mid-March at 85.21 pence . Immediate resistance can be seen at 1.2484(38.2%fib), an upside break can trigger rise towards 1.2526(50%fib).On the downside, immediate support is seen at 1.2432(23.6%fib), a break below could take the pair towards 1.2400(Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday, but the currency was holding near a five-month low after domestic inflation data that supported bets for interest rate cuts and as Canada's budget projected increased spending. Canada's annual inflation rate ticked up as expected to 2.9% in March, but the Bank of Canada's closely watched measures of underlying price pressures eased for a third straight month, data on Tuesday showed.Money markets expect the Canadian central bank to cut its benchmark interest rate by 60 basis points in 2024, compared to 44 basis points of easing expected by the Federal Reserve.The loonie was trading 0.1% higher at 1.3810 to the U.S. dollar , after trading in a range of 1.3784 to 1.3837. On Tuesday, the currency touched its weakest intraday level since Nov. 10 at 1.3846. Immediate resistance can be seen at 1.3854(23.6%fib), an upside break can trigger rise towards 1.3897 (Nov 2nd high).On the downside, immediate support is seen at 1.37572065 (38.2%fib), a break below could take the pair towards 1.3726 (EMA9).
USD/JPY: The dollar eased against yen on Tuesday as the prospect of Japanese government intervention in currency markets loomed. Part of the decline came after finance leaders from the United States, Japan and South Korea agreed to consult closely on foreign exchange markets in their first trilateral meeting on Wednesday. The statement acknowledged concern by Tokyo and Seoul over their currencies' recent sharp declines. Market participants raised the bar of a possible intervention by Japanese authorities to prop up the yen, now mentioning the 155 level from the previous 152, even if they believed Japan could step in at any time.They also believe as long as the yen's fall is gradual and led by fundamentals, the probability of a Japan intervention is low. Strong resistance can be seen at 154.68(23.6%fib), an upside break can trigger rise towards 155.00(Psychological level).On the downside, immediate support is seen at 153.72 (5EMA), a break below could take the pair towards 152.78 (38.2%fib).
Equities Recap
European shares gained on Wednesday after a bruising sell-off in the previous session, supported by healthy quarterly results from consumer giants LVMH and Adidas, while investors also kept a cautious watch on developments in the Middle East.
UK's benchmark FTSE 100 closed up by 0.35 percent, Germany's Dax ended up by 0.12 percent, France’s CAC finished the day up by 0.62 percent.
U.S. stocks closed lower on Wednesday as crude prices tumbled and investors weighed cautious U.S. Federal Reserve commentary and ongoing geopolitical strife against mixed quarterly earnings.
Dow Jones closed down by 0.12 percent, S&P 500 ended down by 0.58 percent, Nasdaq finished the day down by 1.15 percent.
Commodities Recap
After advancing for four consecutive sessions and reaching new record highs, the price of gold gave back some ground during trading on Wednesday.
Gold for April delivery slid $19.10 or 0.8 percent to $2,371.70 an ounce after jumping $25 or 1.1 percent to $2,390.80 an ounce in the previous session.
Oil prices settled down 3% on Wednesday, pressured by a rise in U.S. commercial inventories, weaker economic data from China and U.S. progress on Ukraine and Israel aid bills.
Brent futures for June settled down $2.73, or 3%, at $87.29 a barrel, while U.S. crude futures for May settled down $2.67 or 3.1% at $82.69 a barrel, their biggest fall since March 20.
