EURUSD
- The EUR/USD rose 0.45% to 1.1021, trading back above the 1.10 level, bouncing back hard from 0.5 Fibonacci level traced back from January 2021 high.
- ECB policymakers are scheduled to speak later in the session, including Andrea Enria, Kerstin af Jochnick, and Luis De Guindos, who could offer clues about the future path of the central bank's monetary policy.
- The European Central Bank is widely expected to lift interest rates again in early May, with the main open question being the size of the move, a quarter- or a half-point step.
- The U.S. dollar edged lower in early European trade Wednesday, handing back some of its sharp overnight gains which were prompted by continuing concerns about an economic slowdown and the health of the U.S. banking system.
| SMA (1D) | Slighty Rising |
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| RSI (1D) | Rising |
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| MACD (1D) | Neutral |
Closing statement: The rebound of EUR/USD above the 1.10 level and the upcoming speeches from ECB policymakers have increased market expectations of a potential interest rate hike in early May. However, concerns about the U.S. economic slowdown and banking system health continue to weigh on the U.S. dollar, leading to its recent losses in early European trade.
GBPUSD
- GBP/USD managed to close marginally above the December-January ceiling of 1.2445 after a three-day intense battle, shifting the spotlight to April’s bar of 1.2520.
- GBP/USD rose 0.38% to 1.2453 this morning, with the market fully expecting the Bank of England to hike interest rates by another 25 basis points next month.
- The DXY traded 0.27% lower at 101.564, after posting a 0.5% gain in the previous session.
- Attention is now focused on the upcoming US growth and inflation data ahead of next week's Federal Reserve policy-setting meeting.
| SMA (1D) | Slightly Rising |
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| RSI (1D) | Rising |
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| MACD (1D) | Neutral |
Closing statement: The GBP/USD pair has been experiencing some upward momentum as it has broken through the December-January ceiling and is now setting its sights on the April bar. With the expectation of a Bank of England interest rate hike next month and the focus on US economic data, the currency pair could continue to see some volatility in the near term.
GOLD
- Gold prices rose on Wednesday, driven by safe-haven demand as weak U.S. company earnings and economic data fuelled concerns of a potential recession this year.
- Gold is currently testing the 23.6% Fibonacci level traced back from the February 28th low and the 20-day moving average, while attempting to regain the $2,000 per ounce level.
- Consumer confidence data, falling to a nine-month low, further fuelled fears that the U.S. economy may enter a recession in the second half of the year.
- The Federal Reserve is widely expected to hike interest rates by 25 basis points at its next meeting, with market participants anticipating clues on the path of future rate increases.
Closing statement: The rise in gold prices reflects heightened concerns over the potential for a U.S. economic recession and uncertainty surrounding the Federal Reserve's future interest rate policies.
CRUDE OIL
- Crude oil prices dropped by over 2% on Tuesday, erasing gains made after OPEC and Russia announced production cuts in early April.
- Prices stabilized on Wednesday with support from falling U.S. fuel inventories indicating strong demand from the world’s largest oil consumer.
- The American Petroleum Institute reported a fall in U.S. crude inventories by over 6 million barrels, more than the expected 1.7 million barrels.
- U.S. crude oil stockpiles have been falling since mid-March as refineries increased their runs to produce more gasoline for the upcoming summer demand period starting in May."
| SMA (1D) | Slightly Falling |
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| RSI (1D) | Slightly Rising |
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| MACD (1D) | Falling |
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Closing statement: The recent rise in crude oil prices reflects optimism about a recovery in fuel demand from China's holiday travel and a pullback in the U.S. dollar index. However, concerns remain about the potential impact of central bank policies on economic growth and energy demand.
DAX
- European stock markets traded lower Wednesday due to concerns about the global banking system's health during the ongoing earnings season.
- The German DAX index traded flat this morning, while the French CAC 40 dropped 0.64% and the UK FTSE 100 rose 0.17%.
- The German GfK consumer sentiment index for May came in at -25.7, marking an improvement from the previous reading of -29.3, and the seventh consecutive increase.
- Stronger-than-expected earnings from tech giants Microsoft and Alphabet, released after Wall Street's closing bell, have boosted sentiment, resulting in the safe-haven dollar retreating early Wednesday.
- The European Central Bank is widely expected to raise interest rates again in early May, with the main open question being the size of the move, whether it will be a quarter- or half-point step.”
| SMA (1D) | Slightly Rising |
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| RSI (1D) | Neutral | ||
| MACD (1D) | Neutral |
Closing statement:The European stock markets traded lower on Wednesday amid concerns about the global banking system's health, despite the recent improvement in Germany's GfK consumer sentiment index and strong earnings reports from tech giants. The focus remains on the European Central Bank's expected interest rate hike in early May.