Market Roundup
•French Jul CPI (MoM) 0.1%,0.3% forecast,0.1% previous
•EU Jun PPI (YoY) -6.00%,-6.70% previous
•French Jul French CPI (YoY) 2.3%,2.4% forecast,2.2% previous
•French Jun PPI (MoM) -0.3%,-1.4% previous
•French Jul HICP (MoM) 0.1%,0.3% forecast,0.2% previous
•German Jul Unemployment Change 18K, 16K forecast,19K previous
• German Jul Unemployment Rate6.0% , 6.0% forecast,6.0% previous
Looking Ahead Economic Data (GMT)
•12:30 US Employment Wages (QoQ) (Q2) 1.10% previous
•12:30 US Employment Benefits (QoQ) (Q2)1.10% previous
•12:30 US Employment Cost Index (QoQ) (Q2) 1.0% forecast,1.2% previous
•12:30 Canada May GDP (MoM) 0.1% forecast,0.3% previous
•13:45 US Jul Chicago PMI 44.8 forecast,47.4 previous
•14:00 US Jun Pending Home Sales Index 70.8 previous
•14:00 US Jun Pending Home Sales (MoM) 1.4% forecast,-2.1% previous
•14:30 US Crude Oil Inventories -1.600M forecast,-3.741M previous
Looking Ahead Events And Other Releases(GMT)
•No Data Ahead
Currency Forecast
EUR/USD: The euro firmed against dollar on Wednesday as investors focus shifts to the Federal Reserve's upcoming policy decision. Fed concludes its two-day meeting later in the day, it is expected to maintain current interest rates. Investors will be closely watching Fed Chair Jerome Powell's press conference for any hints about the timing of potential rate cuts, possibly as soon as September. On market radar is also the ADP employment report due at 1215 GMT and Friday's U.S. non-farm payrolls report. Immediate resistance can be seen at 1.0848(Daily high), an upside break can trigger rise towards 1.0909 (23.6%fib).On the downside, immediate support is seen at 1.0815(50%fib), a break below could take the pair towards 1.0790(61.8%fib).
GBP/USD: The pound held steady versus the dollar on Wednesday as focus shifts to the Federal Reserve's rate decision and commentary on monetary policy . Investors were mainly focused on the Bank of England's interest rate decision on Thursday, with greater uncertainty than usual as policymakers have not spoken publicly for more than two months due to rules in the run-up to July 4's election. The pound was trading steadily, at $1.2832 and was on course for a 1.5% monthly gain against the dollar. Immediate resistance can be seen at 1.2906(23.6%fib), an upside break can trigger rise towards 1.2941(July 24tth high).On the downside, immediate support is seen at 1.2824(38.2%fib), a break below could take the pair towards 1.2749(50%fib).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as focus shifts to the Federal Reserve's rate decision and commentary on monetary policy. Markets are fully pricing in a Fed rate cut of 25 basis points (bps) in September, with roughly 68 bps of easing priced in for the year. Still, some analysts expect the Fed to stay cautious as the labour market is still tight.The dollar index , which measures the U.S. currency against six rivals, was at 104.39 and is down over 1% in July. Immediate resistance can be seen at 0.8824(38.2%fib), an upside break can trigger rise towards 0.8885(50%fib).On the downside, immediate support is seen at 0.8779(Daily low), a break below could take the pair towards 0.8752(23.6%fib).
USD/JPY: The dollar fell sharply on Wednesday as the Japanese yen strengthened after comments from Bank of Japan (BOJ) Governor Kazuo Ueda at a press conference after the central bank raised interest rates and unveiled a plan to taper its huge bond-buying programme.The yen strengthened more than 1% to hit an intraday high of 150.61 per dollar , its strongest level since March, shortly after Ueda finished speaking.Ueda left the door open to further rate hikes from the BOJ this year, and said the central bank did not see the 0.5% level "as any key barrier" when raising rates.. Strong resistance can be seen at 151.01(38.2%fib), an upside break can trigger rise towards 152.76 (50%fib). On the downside, immediate support is seen at 149.47(Daily low), a break below could take the pair towards 149.06 (23.6%fib).
Equities Recap
European shares climbed 1% on Wednesday, driven by a raft of corporate updates, while heavyweight ASML led overall gains on report that the Dutch chip equipment manufacturer would be exempted from a new U.S. rule on foreign chip equipment exports.
UK's benchmark FTSE 100 was last up by 1.18 percent, Germany's Dax was last up by 0.51 percent, France’s CAC was last up by 1.16 percent.
Commodities Recap
Gold prices firmed on Wednesday following the killing of a Hamas leader in Iran, on track for a monthly gain driven by optimism about potential U.S. interest rate cuts as focus shifts to the Federal Reserve's upcoming policy decision.
Spot gold was up 0.5% at $2,420.00 per ounce, as of 1147 GMT, and has gained more than 4% this month. U.S. gold futures were up 0.6% to $2,418.10.
Oil prices climbed on Wednesday, rebounding from 7-week lows, as the killing of a Hamas leader in Iran ratcheted up tensions in the Middle East and overshadowed concerns about weak China demand.
Brent crude futures climbed $1.80, or 2.29%, to $80.43 a barrel by 1038 GMT ahead of expiry on Wednesday, while the more active October contract was up $1.85 at $79.92.U.S. West Texas Intermediate crude futures were up $2, or 2.68%, to $76.73 a barrel.
