Posted at 27 April 2023 / Categories Market Roundups
Market Roundup
•US Mar Core Durable Goods Orders (MoM) 0.3%,-0.2% forecast, -0.1% previous
•US Wholesale Inventories (MoM) 0.1%,0.1% previous
•Canada Manufacturing Sales (MoM) 0.7%,-0.3% forecast, -3.6% previous
•US Mar Goods Trade Balance -84.60B, -89.00B forecast, -91.99B previous
•US Mar Durables Excluding Defense (MoM) 3.5%,0.3% forecast,-0.5% previous
•US Mar Goods Orders Non Defense Ex Air (MoM) -0.4%,-0.1% forecast, -0.1% previous
•US Mar Retail Inventories Ex Auto 0.4%,0.1% forecast, 0.3% previous
•US Mar Durable Goods Orders (MoM) 3.2%,0.7% forecast, 1.0% previous
•US EIA Weekly Refinery Utilization Rates (WoW) 0.3%,0.3% forecast, 1.7% previous
•US Crude Oil Imports-0.166M, -0.300M forecast, -1.743M previous
•US EIA Weekly Distillates Stocks -0.576M,-0.839M forecast,-0.356M previous
•US Heating Oil Stockpiles 0.151M,-0.285M forecast,-0.260M previous
•US Gasoline Inventories -2.408M,-0.933M forecast,1.300M previous
•US Crude Oil Inventories -5.054M,-1.486M forecast, -4.581M previous
Looking ahead Economic Data(GMT)
•05:00 Japan Coincident Indicator (MoM) 2.8% previous
•05:00 Japan Leading Index 97.7 forecast, 97.7 previous
•05:00 Japan Leading Index (MoM) 1.1% previous
Looking Ahead Events And Other Releases (GMT)
•No Events ahead
EUR/USD: The euro rose against dollar on Wednesday on expectation that ECB will almost certainly raise interest rate on May 4th. Market bets on future ECB rate rises have been relatively stable recently. The September 2023 ECB euro short-term rate (ESTR) forward was at 3.63%, implying expectations for a depo rate around 3.73% by fall. Investors increased bets on a 25-bps rate hike at next week’s policy meeting, reducing the chances of a 50-bps move to 20% from around 30% the previous days. However, several analysts do not rule out 50 bps .Immediate resistance can be seen at 1.1040 (Daily high), an upside break can trigger rise towards 1.1080(Higher BB).On the downside, immediate support is seen at 1.0976 (5DMA), a break below could take the pair towards 1.0912(April 19th low).
GBP/USD: Sterling rose against the dollar on Wednesday, as traders pared back their holdings of dollar after U.S. banking jitters sparked a rush for dollar the day before. The U.S. dollar had moved higher overnight on concerns over the U.S. banking sector and the economy, along with the safe-haven yen, but this reversed on Wednesday morning. 1015 GMT, the pound was 0.49% higher against the dollar at $1.2471 .The pound is not far off 10-month highs at $1.2540 that it touched on April 14. Meanwhile, against the euro the pound was 0.15% lower at 88.56 pence on Wednesday .Immediate resistance can be seen at 1.2513 (5DMA), an upside break can trigger rise towards 1.2546 (April 14th high).On the downside, immediate support is seen at 1.2459 (5DMA), a break below could take the pair towards 1.2374 (38.2%fib).
USD/CAD: The Canadian dollar weakened to a four-week low against its U.S. counterpart on Wednesday, as worries about the global economic outlook pressured commodity prices and investors assessed minutes from the Bank of Canada’s recent policy decision. Canada is a major producer of commodities, including oil. U.S. crude oil futures settled 3.6% lower at $74.30 a barrel as new orders for key U.S.-manufactured capital goods fell more than expected in March and shipments declined. Domestic data was more upbeat. Factory sales rose 0.7% in March from February, largely driven by transportation equipment. The loonie was trading 0.1% lower at 1.3645 to the greenback, or 73.29 U.S. cents, after touching its weakest level since March 28 at 1.3651. Immediate resistance can be seen at 1.3653(23.6%fib), an upside break can trigger rise towards 1.3676 (Higher BB).On the downside, immediate support is seen at 1.3535 (5DMA), a break below could take the pair towards 1.3574(38.2%fib).
USD/JPY: The dollar dipped against Japan's yen on Wednesday on fresh signs of a U.S. slowdown after orders for core capital goods fell more than expected in March. The dollar index , which measures the currency against six major rivals, fell 0.354% as new orders for key U.S.-manufactured capital goods fell more than expected last month, the Commerce Department said.Unfilled orders continued a steady decline, indicating there was less in the pipeline to drive activity and that business spending on equipment was likely a drag on first-quarter growth. The dollar slid 0.2% against the yen to 133.45. Strong resistance can be seen at 134.34(5DMA), an upside break can trigger rise towards 135.50(23.6%fb).On the downside, immediate support is seen at 133.62 (38.2%fib), a break below could take the pair towards 133.00(Psychological level)
Equities Recap
European shares closed lower for the second straight session on Wednesday, weighed down by a slide in healthcare stocks after Brussels published a long-awaited draft of its proposed overhaul of laws governing the European Union's pharmaceuticals industry.
UK's benchmark FTSE 100 closed up by 0.49percent, Germany's Dax ended down by 0.48 percent, France’s CAC finished the day down by 0.86percent.
U.S. stocks wavered to a mixed close on Wednesday as tech strength boosted the Nasdaq, while weak economic data and ongoing wrangling in Washington over the debt ceiling weighed on cyclicals and the dollar.
Dow Jones closed down by 0.68% percent, S&P 500 closed down by 0.38 % percent, Nasdaq settled up by 0.49% percent.
Commodities Recap
Gold eased back on Wednesday as yields recovered with the focus returning to upcoming economic data, after briefly breaking above $2,000 spurred by fresh worries surrounding the U.S. banking turmoil.
Spot gold fell 0.6% to $1,985.80 per ounce by 12:25 p.m. EDT (16:25 GMT) after jumping as high as $2,009.32 earlier. U.S. gold futures slipped 0.4% to $1,996.20.
Oil prices dropped by almost 4% on Wednesday, extending the previous session's sharp losses, even after a report showed U.S. crude inventories fell more than expected, as recession fears grew for the world's biggest economy.
Brent crude settled at $77.69 a barrel, losing $3.08, or 3.8%. U.S. West Texas Intermediate crude settled at $74.30 a barrel, shedding $2.77, or 3.6%.