Posted at 29 April 2021 / Categories Market Roundups
Market Roundup
• Canada Feb Core Retail Sales (MoM) 4.8%,3.7%,-1.2% previous
• Canada Feb Retail Sales (MoM) 4.8%,4.0% forecast,-1.1% previous
• US Wholesale Inventories (MoM) 1.4%, 0.6% % previous
•US Mar Goods Trade Balance -90.59B,-87.07B previous
• Brazil CAGED Net Payroll Jobs 184.14K, 401.60K previous
• US Gasoline Inventories 0.092M, 0.508M forecast, 0.086M previous
• US Cushing Crude Oil Inventories 0.722M, -1.318M previous
• US Crude Oil Inventories 0.090M, 0.659M forecast, 0.594M previous
• US Fed Interest Rate Decision 0.25%,0.25% forecast, 0.25% previous
Looking Ahead – Economic Data (GMT)
•0:6:30 New Zealand April NBNZ Own Activity 16.6% previous
•0:6:30 New Zealand April ANZ Business Confidence -4.1 previous
•0:7:00 New Zealand Import Price Index (QoQ) (Q1) -1.0% previous
•0:7:00 New Zealand Export Price Index (QoQ) (Q1) 5.5% previous
•Looking Ahead - Economic events and other releases (GMT)
No significant events
Fxbeat
EUR/USD: The euro rose on Wednesday as dollar slipped after the Federal Reserve held interest rates and its monthly bond-buying program steady, giving no sign it was ready to reduce its support for the U.S economy. Investors had been anxiously waiting to see if the Fed would signal a tapering of its mass stimulus programme. In a statement released after a two-day policy meeting, the U.S. central bank did note progress on vaccines and economic recovery, a slightly less negative view than its description in March. 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 strenthed against dollar on Wednesday as the greenback declined after the Federal Reserve doused hopes of an early reduction in its monthly bond purchases and struck an overall cautious tone about the outlook on inflation and the overall economy. At the end of a two-day Federal Open Market Committee meeting, the Fed, as expected, held interest rates unchanged but did acknowledge the improvement in the U.S. economy.Fed Chair Jerome Powell, in remarks after the central bank statement, said it was not the time to talk about tapering its asset purchases. That triggered a further slide in the dollar. 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/CAD: The Canadian dollar strengthened by the most in four years against its U.S. counterpart on Wednesday as risk aversion eased and oil held onto much of the previous day's rally, but the loonie was set to fall by more than 3% for the week. U.S. crude oil futures were down 2.85% at $24.50 a barrel. Oil rose 24% on Thursday, helped by hopes that the United States would intervene in the price war between Saudi Arabia and Russia. At (1302 GMT), the Canadian dollar was trading 1.7% higher at 1.4268 to the greenback, its biggest advance since March 2016. The currency, which on Thursday hit a four-year low at 1.4669, traded in a range of 1.4150 to 1.4538.Immediate resistance can be seen at 1.2362 (50%fib), break can trigger rise towards 1.2375 (5DMA).On the downside, immediate support is seen at 1.2295 (38.2 %fib ), a break below could take the pair towards 1.2238 (23.6% fib)
USD/JPY: The dollar declined against the Japanese yen on Wednesday after the U.S. Central bank kept interest rates unaltered and re-asserted its accommodative arrangement. The Fed held interest rates and its bond-buying program steady after its two-day policy meet, nodding to the economy's growing strength but gave no indication it was ready to reduce its support for the economic recovery. The dollar was last trading down 0.09% at 108.47 yen, after hitting a daily high 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 stocks ended flat on Wednesday as optimism over a swathe of positive bank earnings was offset by caution setting after U.S. Federal Reserve's policy decision.
The UK's benchmark FTSE 100 closed down by 0.26 percent, Germany's Dax ended down by 0.31 percent, and France’s CAC finished the down by 0.03 percent.
Wall Street ended lower on Wednesday after the U.S. Federal Reserve held interest rates and its monthly bond-buying program steady and gave no sign it was ready to reduce its support for the recovery..
Dow Jones closed up at 0.01 percent, S&P 500 ended down 0.02 percent, Nasdaq finished the day down by 0.34 percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday after Federal Reserve Chairman Jerome Powell said now isn't an ideal opportunity to talk about tapering bond purchases as the economy is still a long way from meeting the U.S. central bank's employment and inflation objectives.
Benchmark 10-year yields dropped to 1.609%, from a two-week high of 1.661%, after Powell's comments at the end of the Fed's two-day meeting.
Commodities Recap
Gold prices gained on Wednesday, as the dollar and U.S. Treasury yields eased after the U.S. Federal Reserve kept interest rates unchanged and re-affirmed its accommodative policy to support the economic recovery.
Spot gold rose 0.2% to $1,780.56 per ounce by 3:28 p.m. EDT (1928 GMT), having earlier dipped to its lowest since April 16 at $1,762. U.S. gold futures settled down 0.3% at $1,773.9.
Crude prices rose more than 1% on Wednesday, after U.S. distillate inventories posted a large drawdown and refiners ramped up activity to the highest in over a year, boosting hopes for rising fuel demand in the world's top oil consumer.
Brent crude futures gained 85 cents, or 1.3%, to settle at $67.27 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 92 cents, or 1.5%, to settle at $63.86 a barrel.