Sterling recovers as bargain hunters return, European shares gain, Gold eases, Oil steadies after hitting lowest this century on coronavirus crisis-april 22nd 2020
• UK March CPI (MoM) 0.0%, 0.3% forecast, 0.4% previous
• UK March CPI (YoY) 1.5%, 1.5% forecast, 1.7% previous
• UK March PPI Input (MoM) -3.6% , -3.9% forecast, -0.9% previous
• UK March PPI Input (YoY) -2.9%,-3.6% forecast, -0.2% previous
• UK March PPI Output (YoY) 0.3% , -0.1% forecast, 0.5% previous
• Italian Feb Industrial New Orders (MoM) -4.4% forecast, 1.1% previous
• Italian Feb Industrial New Orders (YoY -2.6%, -1.9% previous
• Italian Feb Industrial Sales (YoY) 0.90%,3.80% previous
Looking Ahead - Economic Data (GMT)
• 12:30 Canada Common CPI (YoY) 1.8% previous
• 12:30 Canada March Core CPI (MoM) 0.7% previous
• 12:30 Canada CPI (MoM) -0.4% forecast, 0.4% previous
• 12:30 Canada March CPI (YoY) 1.2% forecast, 2.2% previous
• 12:30 Canada Median CPI (YoY) 2.1% previous
• 12:30 Canada March New Housing Price Index (MoM) 0.4% previous
• 12:30 US Feb House Price Index (MoM) 0.3% previous
• 12:30 US Feb House Price Index (YoY) 5.2% previous
• 12:30 Russia March Industrial Production (YoY) 0.5%, 3.3% previous
• 12:30 US Crude Oil Inventories 15.150M forecast,19.248M previous
• 15:00 Russia March Industrial Production (YoY) 0.5%,3.3% previous
• 15:00 Russia GDP Monthly (YoY) 2.9% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
EUR/USD: The euro gained against dollar on Wednesday as euro was buoyed after Italy breezed through a major debt sale on Tuesday and speculation continued that the European Central Bank would provide more support measures. Focus was on whether European Union leaders, who meet on Thursday, will be able to agree more aid to help the region’s economies cope with the coronavirus outbreak. Immediate resistance can be seen at 1.0891 (9 DMA), an upside break can trigger rise towards 1.0914 (21 DMA).On the downside, immediate support is seen at 1.0811 (April 21 st low), a break below could take the pair towards 1.0754 (Lower BB).
GBP/USD: Sterling traded slightly higher against dollar on Wednesday, as some traders bought back into a currency that had slipped to a two-week low the day before amid a flight to safe havens in financial markets following a crash in oil prices. The pound is still well above its mid-March lows, but the currency remains cheap, though its correlation to equities and other riskier assets make it a hazardous bet.The British currency was last up 0.3% both against the dollar and the euro, trading at $1.2333 and at 88 pence respectively.. Immediate resistance can be seen at 1.2378 (21 DMA), an upside break can trigger rise towards 1.2403 (5 DMA).On the downside, immediate support is seen at 1.2200 (Lower BB), a break below could take the pair towards 1.2157 (April 7th low).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday a bounce in oil prices failed to calm market nerves, with the week’s rout and frail fuel demand underlining a grim outlook for the global economy. The greenback sat just below a two-week peak against a basket of peers, and barely budged against commodity currencies whacked by the oil collapse, even as U.S. crude jumped 20%. At (GMT 12:00), Greenback dipped 0.12% versus the Swiss franc to 0.9680. Immediate resistance can be seen at 0.9707 (Psychological level), an upside break can trigger rise towards 0.9798 (200 DMA).On the downside, immediate support is seen at 0.9662 (9 DMA), a break below could take the pair towards 0.9600 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Wednesday as virus spread showed no signs of slowing driving investors towards safe-haven yen . The wildest trading in oil market history continued with benchmark Brent down another 10% to $17 a barrel, having plunged 24% the day before after U.S. crude prices had gone deeply negative.With coronavirus lockdowns slashing demand for everything from petrol to jet fuel, and markets still bloated by a turf war being fought by Saudi Arabia and Russia, places to store the excess supply are running out. Strong resistance can be seen at 107.85 (11 DMA), an upside break can trigger rise towards 108.24 (200 DMA).On the downside, immediate support is seen at 107.29 (April 22nd low), a break below could take the pair towards 106.75 (lower BB).
European stock markets edged higher on Wednesday as Italy looked set to relax sweeping restrictions to contain the coronavirus, with investors remaining cautious about a swift recovery after more companies issued worrying financial forecasts.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading higher at 1.54 percent, Germany's Dax was down by 0.76 percent, France’s CAC was last up by 0.41 percent.
Gold prices inched lower on Wednesday as a stronger dollar and dash for cash following a historic rout in U.S. crude oil futures curbed demand for the safe-haven asset.
Spot gold eased 0.2% to $1,683.08 per ounce by 0347 GMT, after touching a near two-week low on Tuesday as the oil rout triggered a panic sell-off in wider markets, fuelling a rush for liquidity.U.S. gold futures rose 1% to $1,704.60.
Oil recovered some ground on Wednesday after slumping below $16 a barrel to its lowest since 1999, but prices remained near two-decade lows with the market awash with crude due to the economic fallout from the coronavirus pandemic.
Brent crude , which fell 24% in the previous session, touched $15.98 a barrel on Wednesday, hitting its lowest since June 1999. By 1120 GMT, it had recovered to trade unchanged on the day at $19.33 but still a third of its December level.
U.S. West Texas Intermediate CLc1 was down 25 cents, or 2.2%, at $11.32.
Euro zone bond yields moved marginally in early trade and investors looked to return to stocks after a sell-off on Tuesday caused by a crash in oil prices.
Italy’s 10-year yield was down 2 basis points to 2.15% in early Wednesday trade after rising 22 basis points on Tuesday. Germany’s 10-year yield was up 2 basis points to -0.46%.