Posted at 28 April 2021 / Categories Market Roundups
Market Roundup
•U.S. Fed policy statement due 1800 GMT
•German May GfK Consumer Climate -8.8, -3.5 forecast, -6.2 previous
•French Apr Consumer Confidence 94, 93 forecast, 94 previous
•Sweden Mar Retail Sales (YoY) 9.1%, 4.6% previous
•Sweden Mar Retail Sales (MoM) 2.6%,0.7% previous
•Swiss Apr ZEW Expectations 68.3, 66.7 previous
•Irish Mar Retail Sales (MoM) -1.9%, 13.9% previous
•Irish Mar Retail Sales (YoY) 8.5%, -3.2% previous
Looking Ahead – Economic Data (GMT)
•12:30 Canada Feb Core Retail Sales (MoM) 3.7%,-1.2% previous
•12:30 Canada Feb Retail Sales (MoM) 4.0% forecast,-1.1% previous
•12:30 US Wholesale Inventories (MoM) 0.6% % previous
•U12:30 S Mar Goods Trade Balance -87.07B previous
•14:00 Brazil CAGED Net Payroll Jobs 401.60K previous
•14:30 US Gasoline Inventories 0.508M forecast, 0.086M previous
•14:30 US Cushing Crude Oil Inventories -1.318M previous
•14:30 US Crude Oil Inventories 0.659M forecast, 0.594M previous
•18:00 US Fed Interest Rate Decision 0.25% forecast, 0.25% previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US FOMC Statement
•18:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro edged lower against dollar on Wednesday as caution set in ahead of the U.S. Federal Reserve's latest policy decision, which will likely set the tone for global currency trading in the coming sessions. The Fed is widely expected to maintain its policy stance and likely to repeat its dovish message, but some analysts say signs of rising inflation could nudge the central bank to abandon its rhetoric that a policy tightening was still a long way off. The euro slipped 0.2% to $1.2070 , off Monday's two-month high of $1.2117. Immediate resistance can be seen at 1.2116 (23.6%fib), an upside break can trigger rise towards 1.2155 (Higher BB).On the downside, immediate support is seen at 1.2045 (38.2%fib), a break below could take the pair towards 1.2015 (14DMA).
GBP/USD: The pound edged lower against dollar on Wednesday as the greenback gained ahead of the Federal Reserve meeting later in the day. The dollar's strength is likely to be temporary, as the U.S. national bank is broadly expected to keep up its monetary settings unchanged and Fed Chairman Jerome Powell is viewed as likely to repeat his dovish message. By 11:30 GMT, sterling was 0.3% lower against the dollar at $1.3875. It was 0.1% lower to the euro at 86.99 pence. Immediate resistance can be seen at 1.3912 (23.6%fib), an upside break can trigger rise towards 1.3975(Higher BB ).On the downside, immediate support is seen at 1.3844 (14DMA), a break below could take the pair towards 1.3815 (38.2%fib ).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as market awaited the U.S. Federal Reserve’s policy meeting later in the session. While no major policy changes are expected at the meeting, investors will pay close attention to Chairman Jerome Powell’s comments for further insight into the bank’s thinking on inflation and bond purchases. The Fed has committed to continue its $120 billion a month of government bond purchases until “substantial further progress” is made in an economic recovery from the pandemic, but recent strong data has investors looking for any signs that the Fed may start talking about tapering the buying. Immediate resistance can be seen at 0.9174(38.2%fib), an upside break can trigger rise towards 0.9200 (Psychological level).On the downside, immediate support is seen at 0.9133(23.6%fib), a break below could take the pair towards 0.9055(Lower BB).
USD/JPY: The dollar gained against the Japanese yen on Wednesday as investors awaited upcoming U.S. Federal Reserve meeting. The U.S. dollar drifted higher on Wednesday as investors moved to the sidelines ahead of a U.S. Federal Reserve policy statement and a speech by Joe Biden later in the day where the U.S. president is set to announce more stimulus plans. Consensus broadly remains that the Fed will remain on hold, any small shift in rhetoric could trigger an outsized move in markets. The dollar was last trading down 0.15% at 108.76 yen, after hitting a daily low of 108.65. Strong resistance can be seen at 109.15(50%fib), an upside break can trigger rise towards 109.55 (61.8%fib).On the downside, immediate support is seen at 108.62(38.2%fib), a break below could take the pair towards 108.13(23.6%fib).
Equities Recap
European shares gave up opening gains on Wednesday, as caution crept in ahead of the U.S. Federal Reserve’s policy decision, but strong results from Deutsche Bank and Lloyds Banking Group boosted earnings optimism.
At (GMT 11:40 ),UK's benchmark FTSE 100 was last trading down at 0.54 percent, Germany's Dax was down by 0.48 percent, France’s CAC was last down by 0.63 percent.
Commodities Recap
Gold eased to a one-week low on Wednesday, pressured by a jump in U.S. Treasury yields and a firmer dollar as investors awaited the Federal Reserve's policy decision.
Spot gold was down 0.6% to $1,765.85 per ounce by 1106 GMT, after dipping to its lowest since April 20 at $1,762.50. U.S. gold futures dropped 0.7% to $1,765.70.
Oil prices were steady on Wednesday as support coming from forecasts of a recovery in global fuel demand was tempered by a surge in India's coronavirus cases and rising U.S. crude inventories.
Brent crude futures edged down 7 cents, or 0.11%, to $66.35 a barrel at 0941 GMT, after rising 1.2% on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures were up 1 cent, or less than 0.1%, to $62.95 a barrel, after gaining 1.7% in the previous session.