Posted at 29 March 2023 / Categories Market Roundups
Market Roundup
•US Feb Pending Home Sales Index 83.2 ,82.5 previous
• US Feb Pending Home Sales (MoM) 0.8%, -2.3% forecast,8.1% previous
•US Cushing Crude Oil Inventories -1.632M,-1.063M previous
•US Gasoline Production 0.535M,0.392M previous
•US Distillate Fuel Production 0.130M,0.075M previous
•US Gasoline Inventories -2.904M,-1.617M forecast,-6.400M previous
•US Crude Oil Inventories -7.489M, 0.092M forecast,1.117M previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Foreign Bonds Buying 3,334.8B previous
•23:30 Japan Foreign Investments in Japanese Stocks -1,080.6B previous
•00:00 New Zealand March ANZ Business Confidence -43.3 previous
•00:00 New Zealand March NBNZ Own Activity -9.2% previous
Looking Ahead Events And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro gained ground on Wednesday as investors welcomed more stability in the banking sector. Asset sales from Silicon Valley Bank (SVB), the regional lender that collapsed earlier this month, helped boost investors' risk appetite. Several measures of stress in the market have eased, helping stocks, European currencies, and commodities rally. The euro was up 0.12% at $1.0844.Immediate resistance can be seen at 1.0866(23.6%fib), an upside break can trigger rise towards 1.0895(Higher BB).On the downside, immediate support is seen at 1.0819(5DMA), a break below could take the pair towards 1.0758(38.2%fib).
GBP/USD: The sterling initially gained against the dollar on Wednesday but gave up some ground as concerns about the health of the global financial system continued to ease. Markets were volatile in March following the collapse of US tech lender Silicon Valley Bank (SVB) and banking rival UBS' emergency takeover of Credit Suisse, stoking fears of tensions systemic stress that could lead to more bank failures. But relief swept markets this week after US regional lender First Citizens BancShares bought SVB's assets and a lack of fresh concerns helped boost investor confidence. The sterling rose 0.1% against the dollar to $1.2311, its highest since Feb. 2.Immediate resistance can be seen at 1.2360 (23.6%fib), an upside break can trigger rise towards 1.2381(Higher BB).On the downside, immediate support is seen at 1.2297(5DMA), a break below could take the pair towards 1.2270(38.2%fib).
USD/CAD: The Canadian dollar rallied to a near four-week high against its US counterpart on Wednesday, as renewed risk appetite increased pressure on speculators who placed bearish bets on the currency . Data from the U.S. Commodity Futures Trading Commission shows that speculators have raised their bearish bets on the loonie to the most since January 2019. Meanwhile, Canadian Finance Minister Chrystia Freeland's promise of a fiscally prudent budget in the face of high inflation has disappointed some strategists who had hoped for spending restraint from the Liberal government. The loonie was trading 0.2% higher at 1.3570 to the greenback, or 73.69 U.S. cents, after touching its strongest since March 3 at 1.3560 .Immediate resistance can be seen at 1.3607 (38.2% fib), an upside break can trigger rise towards 1.3622 (5DMA).On the downside, immediate support is seen at 1.3547(50% fib), a break below could take the pair towards 1.3479(61.8% fib).
USD/JPY: The dollar rose sharply against the yen on Wednesday as volatile increased as the end of the Japanese fiscal year approached. The yen remained volatile in the run-up to the end of the Japanese fiscal year on Friday.The dollar had dropped 0.5% against the yen the previous day, when it uncharacteristically moved in the opposite direction to long-term U.S. Treasury yields, which have been rising as calm returns to markets. The 10-year benchmark U.S. yield squeezed up to a one-week peak of 3.583% in Tokyo trading, but was last little changed at 3.556%. The Japanese yen , fell 0.6% against the dollar to 131.68 per dollar, after rising 0.5% the day before. Strong resistance can be seen at 132.08(Daily high), an upside break can trigger rise towards 132.92 (38.2%fib).On the downside, immediate support is seen at 131.44(9DMA), a break below could take the pair towards 130.29(23.6%fib).
Equities Recap
European stocks rose on Wednesday, reflecting optimistic sentiment in Asian markets after plans to disrupt Chinese tech giant Alibaba, while Swiss bank UBS rose after rehiring Sergio Ermotti as chief executive.
UK's benchmark FTSE 100 closed up by 1.07 percent, Germany's Dax ended up by 1.23 percent, France’s CAC finished the day up by 1. 39 percent.
US stocks rallied on Wednesday as all three major indexes rose at least 1% as upbeat outlooks from Micron Technology and others eased some concerns about the health of the economy.
Dow Jones closed up by 1.00 percent, S&P 500 ended up by 1.42 percent, Nasdaq finished the day up by 1.79 percent.
Commodities Recap
Gold prices fell on Wednesday as investors trickled back into riskier assets, betting that risks of contagion from the global banking crisis have been curbed for now.
Spot gold was trading 0.3% lower at $1,967.29 per ounce by 2:11 p.m. EDT (1811 GMT). U.S. gold futures settled 0.3% lower at $1,966.90.
Oil fell slightly on Wednesday in choppy trading as investors looked to pocket profits from two consecutive days of gains and the market debated tighter supply.
Brent crude closed 37 cents, or 0.5%, lower at $78.28 a barrel, while West Texas Intermediate crude fell 23 cents, or 0.3%, to $72.97.