Posted at 20 April 2023 / Categories Market Roundups
Market Roundup
•Canada Mar Housing Starts 213.9K, 237.8K forecast,244.0K previous
• Canada Mar RMPI (YoY) -16.5%,-11.8% forecast,-5.2% previous
•Canada Mar RMPI (MoM) -1.7%,0.0% ,forecast,-0.4% previous
•Canada Mar IPPI (YoY) -1.8%,-2.1% forecast, 1.4% previous
•Canada Mar IPPI (MoM) 0.1%, 1.6% forecast, -0.8% previous
•US Cushing Crude Oil Inventories -1.088M,0.622M forecast,-0.409M previous
•US Crude Oil Imports -1.743M,-0.778M forecast,1.561M previous
•US Crude Oil Inventories -4.581M,-1.088M forecast,0.597M previous
Looking Ahead Economic Data(GMT)
•03:00 NZ Mar RBNZ Offshore Holdings 55.70% forecast,56.00% previous
•04:30 Japan Tertiary Industry Activity Index (MoM) 0.4% forecast, 0.9% previous
Looking Ahead Events Other Releaes(GMT)
•No Significant Events
Currency Summariies
EUR/USD: The euro dipped on Wednesday as the U.S. dollar regained some ground, while investors assessed the chances of the Federal Reserve raising interest rates just once more in May before pausing .The dollar strengthened 0.2%, underpinned by U.S. yields climbing to a near one-month high, with markets now pricing in an 85% chance of a 25-basis point rate hike at the Federal Reserve's May 2-3 meeting, according to CME's FedWatch tool. Markets will scan more upcoming remarks by Fed officials this week, ahead of a blackout period that starts on April 22 before the central bank's May meeting. Immediate resistance can be seen at 1.0971(5DMA), an upside break can trigger rise towards 1.1036(Higher BB).On the downside, immediate support is seen at 1.0905(38.2%fib ), a break below could take the pair towards 1.0848 (April 11th low).
GBP/USD: Sterling eased on Wednesday as a higher dollar wiped out earlier gains made after data showed Britain has the highest inflation in western Europe, cementing market expectations for a rate hike at the Bank of England’s meeting in May.Data on Wednesday showed consumer prices rose by an annual 10.1%, the Office for National Statistics said, down from 10.4% in February but higher than the 9.8% forecast by economists polled. The inflation data initially sent sterling as much as 0.8% higher against the dollar. It was last down 0.2% at $1.2396 against the dollar. Immediate resistance can be seen at 1.2426(5DMA), an upside break can trigger rise towards 1.2541(23.6%fib).On the downside, immediate support is seen at 1.2374(38.2%fib), a break below could take the pair towards 1.2281(April 3rd low).
USD/CAD: The Canadian dollar weakened to a one-week low against its U.S. counterpart on Wednesday as U.S. bond yields rose and domestic data showed housing starts falling more than expected in March. Canadian housing starts fell 11% in March, contributing to a slower trend in recent months that follows a rapid increase in borrowing costs. The loonie was trading 0.6% lower at 1.3462 to the greenback, or 74.28 U.S. cents, its weakest level since last Wednesday.The decline for the currency came as oil settled 2.1% lower at $79.16 a barrel, while investors turned more skeptical that the Federal Reserve will cut interest rates later this year. Immediate resistance can be seen at 1.3155 (50%fib), an upside break can trigger rise towards 1.3565(30DMA).On the downside, immediate support is seen at 1.3425 (38.2%fib), a break below could take the pair towards 1.3312 (23.6%fib).
USD/JPY: The dollar strengthened against Japan's yen on Wednesday as greenback was lifted by rising Treasury yields. The yield on two-year Treasury notes , which are sensitive to expectations for the U.S. central bank's monetary policy, rose 7 basis points to 4.269% after hitting a one-month high of 4.286%.The dollar index , which tracks the currency against a basket of its peers, was up 0.206% as markets turn more skeptical that the Federal Reserve will cut rates later this year.Strong resistance can be seen at 135.25(23.6%fib), an upside break can trigger rise towards 135.78(Higher BB).On the downside, immediate support is seen at 133.19(5DMA), a break below could take the pair towards 132.92(23.6%fib)
Equities Recap
European shares closed a touch lower on Wednesday after a warning from Dutch chip company ASML weighed down technology stocks, while a rise in shares of insurers limited overall declines.
UK's benchmark FTSE 100 closed down by 0.13 percent, Germany's Dax ended up by 0.08 percent, France’s CAC finished the day up by 0.21 percent.
The S&P 500 ended virtually unchanged on Wednesday while the Dow dipped as investors digested a mixed bag of corporate earnings, including upbeat reports from medical technology companies, countered by weakness in Netflix shares.
Dow Jones closed down by 0.23% percent, S&P 500 closed down by 0.01% percent, Nasdaq settled up by 0.03 % percent.
Commodities Recap
Gold prices fell below the key $2,000 level on Wednesday as U.S. yields marched higher, with investors turning sceptical about potential U.S. rate cuts later this year.
Spot gold was down 0.5% at $1,994.02 per ounce by 1:40 p.m. ET (1740 GMT), having shed as much as 1.8% to a two-week low of $1,969.09 earlier in the session. U.S. gold futures settled down 0.6% at $2,007.30.
Oil prices slid about 2% to a two-week low on Wednesday despite a sharp decline in U.S. crude inventories, as the dollar strengthened on fears that looming Federal Reserve interest rate hikes could curb energy demand in the world's top consumer.
Brent futures for June delivery fell $1.65, or 2.0%, to settle at $83.12 a barrel. West Texas Intermediate crude (WTI) for May delivery fell $1.70, or 2.1%, to settle at $79.16, while the June WTI contract, which becomes the U.S. front-month at the end of trading on Thursday, also lost 2.1% to settle at $79.24.