• UK 10-Year Treasury Gilt Auction 0.376%,0.307% previous
• US MBA 30-Year Mortgage Rate 3.49%,3.47% previous
• US MBA Mortgage Applications (WoW) -17.9%, 15.3% previous
• US MBA Purchase Index 185.9 , 211.7 previous
• US Mortgage Market Index 718.2, 874.6 previous
• US Mortgage Refinance Index 3,853.1 , 4,781.1 previous
• Brazilian Feb Service Sector Growth (YoY) 0.7%,2.1% forecast, 1.8% previous
• Canada March Housing Starts 195.2K, 180.0K forecast, 210.6K previous
• Canada Feb Building Permits (MoM) -7.3%,-4.5% forecast, 3.3% previous
Looking Ahead – Economic Data (GMT)
• 14:30 US Crude Oil Inventories 9.271M forecast, 13.834M previous
• 14:30 US Cushing Crude Oil Inventories 3.521M previous
• 16:00 US Gasoline Inventories 4.333M forecast, 7.524M previous
•16:00 Brazil April Thomson Reuters IPSOS PCSI 50.35 previous
EUR/USD: The euro dipped against dollar on Wednesday as failure of European Union finance ministers to agree on further support for their coronavirus-hit economies weighed on euro. The talks, which are trying to agree a package of measures for governments, companies and individuals, were suspended until Thursday. A feud between Italy and the Netherlands over what conditions should be attached to euro zone credit for governments were blocking progress. The euro was last trading 0.04 % lower to $1.0886 .Immediate resistance can be seen at 1.0932 (9 DMA), an upside break can trigger rise towards 1.0978 (50 DMA).On the downside, immediate support is seen at 1.0872 (5 DMA), a break below could take the pair towards 1.0800 (Psychological level).
GBP/USD: Sterling rose against dollar on Wednesday as risk appetite improved on hopes that lockdowns may be slowing the spread of the coronavirus in some countries. Earlier in the week, the pound saw knee-jerk reactions to news around the condition of British Prime Minister Boris Johnson, who having tested positive for the coronavirus was admitted to hospital and then moved to intensive care. He was last reported to be in stable condition. Johnson’s condition, while a concern, is also unlikely to mean a change in the government’s policy direction in fighting the virus. Immediate resistance can be seen at 1.2400 (30 DMA), an upside break can trigger rise towards 1.2650 (50 DMA).On the downside, immediate support is seen at 1.2286 (11 DMA), a break below could take the pair towards 1.2138 (21 DMA).
USD/CHF: The dollar declined against the Swiss franc on Wednesday amid growing concerns in markets that the coronavirus pandemic is far from over. Risk assets had rallied this week on hopes that the coronavirus outbreak was beginning to peak in its European and U.S. epicentres. But with its death toll steadily rising and deep economic cracks becoming increasingly apparent, investors dialled down their optimism. Further souring sentiment, European ministers failed to agree on more support for their pandemic-hit economies. With talks now suspended until Thursday, the discussions underscored deep rifts in the bloc over its response to the outbreak. Immediate resistance can be seen at 0.9731(100 DMA), an upside break can trigger rise towards 0.9805 (200 DMA).On the downside, immediate support is seen at 0.9671 (50 DMA), a break below could take the pair towards 0.9610 (11 DMA).
USD/JPY: The dollar gained against the Japanese yen on Wednesday as optimism that the coronavirus crisis was slowing waned, increasing investor concerns over the economic impact of the pandemic. The dollar’s rise came as global stocks turned negative after two days of gains as deaths from the coronavirus mounted across the globe. European equities fell amid renewed concern about the spread of the virus and the continent’s response to it, mirroring Asian markets and a fall on Wall Street late on Tuesday. At (1327 GMT),the dollar dipped 0.18% against the Japanese currency to 108.92 yen. Strong resistance can be seen at 109.32 (April 6th high), an upside break can trigger rise towards 109.78 (Feb 28th high).On the downside, immediate support is seen at 108.27(200 DMA), a break below could take the pair towards 108.00 (Psychological level).
European stock markets headed lower on Wednesday following a two-day rally, as the coronavirus death toll rose in some of the worst-hit parts of the continent, while the euro zone’s finance ministers failed to agree on an economic rescue package.
At (GMT 13:33),UK’s benchmark FTSE 100 was last trading down at 0.96 percent, Germany’s Dax was down by 0.46 percent, France’s CAC finished was down by 0.91 percent.
Gold edged higher on Wednesday as the rising coronavirus death toll hammered risk sentiment, while investors were waiting for the release of the U.S. Federal Reserve’s policy meeting minutes for clues on further stimulus measures.
Spot gold was up 0.1% at $1,649.66 per ounce by 1237 GMT, after climbing to its highest since March 10 on Tuesday at $1,671.40.U.S. gold futures dropped 0.5% to $1,675.30 per ounce.
Oil steadied near $32 a barrel on Wednesday, supported by hopes that a meeting between OPEC members and allied producers on Thursday will trigger output cuts to shore up prices that have collapsed due to the coronavirus pandemic.
Brent crude was up 11 cents, or 0.3%, at $31.98 by 1322 GMT after falling 3.6% on Tuesday. U.S. West Texas Intermediate (WTI) crude rose 55 cents to $24.18.
Italian government bond yields rose sharply on Wednesday, after European Union ministers failed to agree a rescue package to help economies recover from the impact of the coronavirus outbreak.
The 10-year Italian yield rose 20 basis points to 1.799% in early European trading, hitting its highest since March 19. Two-year bonds yields were up 22 bps on the day at 0.79%, the highest in three weeks.