Market Roundup
• US Gasoline Production -0.435M ,-0.263M previous
• US Cushing Crude Oil Inventories 2.107M, -0.018M previous
• US Gasoline Inventories 1.299M , -1.650M forecast,3.310M previous
• US EIA Refinery Crude Runs (WoW) 0.147M ,0.127M previous
• US Heating Oil Stockpiles -0.609M ,0.486M previous
• US EIA Weekly Refinery Utilization Rates (WoW) 0.9%, 1.0% previous
• US Crude Oil Inventories 3.165M, -0.700M forecast,-1.952M previous
Looking Ahead Economic Data(GMT)
•00:00 New Zealand Mar NBNZ Own Activity 29.5% previous
•00:00 New Zealand Mar ANZ Business Confidence 34.7 previous
•00:00 Australia MI Inflation Expectations 4.5% previous
•00:30 Australia Feb Retail Sales (MoM) 0.4% forecast,1.1% previous
•00:30 Australia Housing Credit 0.4% previous
•00:30 Australia Private Sector Credit (MoM) 0.4% forecast,0.4% previous
•02:000 Australia Feb M3 Money Supply 408.3B previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
EUR/USD: The euro declined on Wednesday as investors awaited a key U.S. inflation data later this week, which could provide more clues on the Federal Reserve's policy path. The dollar is on course for solid quarterly gains after investors pared back their expectations for big rate cuts in the face of strong economic data and reticence from central bankers. The market's main focus this week is on U.S. core inflation figures due on Good Friday, though a bigger-than-expected jump in U.S. durable goods orders on Tuesday already has boosted the dollar against the yen. The euro fell 0.07% to $1.0821. Immediate resistance can be seen at 1.0876(20SMA), an upside break can trigger rise towards 1.0906 (23.6%fib).On the downside, immediate support is seen at 1.0800(Psychological level), a break below could take the pair towards 1.0763 (50%fib).
GBP/USD: The pound edged lower on Wednesday as investors stayed away from making big bets in a holiday-shortened week. Recent data that showed hotter than expected inflation in the form of consumer prices (CPI) and producer prices (PPI) failed to markedly disrupt market expectations for a rate cut of at least 25 basis points (bps) from the Federal Reserve in June.The Fed kept its projections for three rate cuts this year intact at its policy meeting last week, which central bank officials have largely stood by this week in comments.The Personal Consumption Expenditures Price Index (PCE), the Fed's preferred inflation gauge, is due on Good Friday, when the U.S. stock market will be closed. Investors will now also focus on UK's fourth-quarter gross domestic product (GDP) readings due on Thursday. Immediate resistance can be seen at 1.2664(23.6%fib), an upside break can trigger rise towards 1.2741(March 19th high).On the downside, immediate support is seen at 1.2603 (50%fib), a break below could take the pair towards 1.2563(Lower BB).
USD/CAD: The Canadian dollar strengthened on Wednesday against its U.S. counterpart but the move was limited as investors awaited domestic gross domestic product data that could guide expectations for the start of Bank of Canada interest rate cuts. Canadian GDP data, due on Thursday, is expected to show the economy growing 0.4% in January from December. The price of oil , one of Canada's major exports, settled 0.3% lower at $81.35 a barrel after data showed a surprise increase in U.S. stockpiles. Prices have retreated since climbing last week to their highest levels since October. The loonie was trading 0.1% higher at 1.3575 to the U.S. dollar, or 73.66 U.S. cents, after trading in a range of 1.3572 to 1.3608. Immediate resistance can be seen at 1.3608 (Daily high), an upside break can trigger rise towards 1.3622(Higher BB).On the downside, immediate support is seen at 1.3567 (38.2%fib), a break below could take the pair towards 1.3501(50%fib).
USD/JPY: The dollar initially gained against yen on Wednesday but gave up ground as yen drew intervention from the Bank of the Japan. Japanese authorities stepped in to defend the yen at 151.94 in 2022 and finance minister Shunichi Suzuki on Wednesday used the same words that preceded that intervention, warning Japan would take "decisive steps" against excessive currency moves.The finance ministry said on Wednesday that it will hold talks with the Bank of Japan and the Financial Services Agency at 0915 GMT on Wednesday and will brief reporters afterwards. The announcement boosted the yen slightly.The yen has slumped more than 7% this year, driven by the yawning gap between U.S. and Japanese bond yields, which the Bank of Japan's small interest rate hike last week did little to change. Strong resistance can be seen at 151.93 (23.6%fib) an upside break can trigger rise towards 152.39(Higher BB).On the downside, immediate support is seen 150.85(38.2%fib), a break below could take the pair towards 150.12(50%fib)
Equities Recap
European stocks inched up to close at a record high on Wednesday helped by gains in defensive sectors, while shares of the world's second-largest listed fashion retailer H&M saw their strongest day in nearly nine months on upbeat quarterly results.
The UK's benchmark FTSE 100 closed up by 0.01 percent, Germany's Dax ended up by 0.49 percent, and France’s CAC finished the up by 0.25 percent.
U.S. stocks were higher on Wednesday, with the Dow leading gains and the S&P 500 setting a closing record, paced drugmaker Merck, while investors looked towards the next piece of inflation data and Federal Reserve commentary for signals on the rate path.
Dow Jones closed higher by 1.22 percent, S&P 500 was up 0.85 percent, Nasdaq was up by 0.51 percent.
Commodities Recap
Gold prices gained on Wednesday, as investors awaited a key U.S. inflation data later this week, which could provide more clues on the Federal Reserve's policy path.
Spot gold was up 0.5% at $2,189.89 per ounce as of 1:50 p.m. EDT (1750 GMT). U.S. gold futures settled 0.6% higher at $2,212.7.
Oil prices fell for the second consecutive session on Wednesday as the dollar strengthened and government data showed a surprise jump in U.S. crude and gasoline stocks.
Brent crude futures for May shed 16 cents, or 0.2%, to settle at $86.09 a barrel while the more actively traded June contract was down 22 cents to $85.41. The May contract expires on Thursday.
U.S. West Texas Intermediate (WTI) crude futures for May delivery dropped 27 cents, or 0.3%, to $81.35 a barrel. Both Brent and WTI futures have been under selling pressure since hitting more than four-month highs last week.
