EURUSD
- EUR/USD fell 0.13% to 1.0957 after rising 0.4% in the previous session.
- The final March inflation data for the euro zone is expected to be released today, with CPI projected to rise 0.9% on the month and 6.9% annually.
- Traders are analyzing economic data and comments from policymakers to determine the likely path of the Federal Reserve's monetary policy.
- Federal Reserve Bank of St. Louis President James Bullard favors continued interest-rate hikes to counter inflation, potentially lifting the Fed Funds rate all the way to a range of 5.5% to 5.75%.
| SMA (1D) | Rising |
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| RSI (1D) | Slightly Falling |
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| MACD (1D) | Neutral |
Closing statement: The EUR/USD pair experienced a slight decline on Wednesday, following a rise in the previous session. Traders are eagerly awaiting the final March inflation data for the euro zone, which is expected to show a rise of 0.9% on the month and 6.9% annually. Meanwhile, market participants are closely monitoring economic data and statements from policymakers to gauge the potential path of the Federal Reserve's monetary policy. Federal Reserve Bank of St. Louis President James Bullard's recent comments suggest a preference for continued interest-rate hikes to combat inflation, which could lift the Fed Funds rate to a range of 5.5% to 5.75%.
GBPUSD
- GBP/USD rose 0.2% to 1.2448 after data released on Wednesday showed that the CPI rises slowed less than expected in March and remained highly elevated at 10.1%.
- The Bank of England's task of reining in inflation has been supportive for sterling, which hit a 10-month high last week.
- The DXY, which tracks the dollar against six other currencies, traded 0.15% higher at 101.873, rebounding after the previous session's 0.4% slide.
- Atlanta Federal Reserve President Raphael Bostic suggested one more interest rate rise of 25 basis points to the 5.00%-5.25% target range should be enough for the Fed to then pause and gauge the extent to which inflation is returning back to target.
| SMA (1D) | Rising |
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| RSI (1D) | Slightly Rising |
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| MACD (1D) | Neutral |
Closing statement: The steady rise of GBP/USD is being driven by strong inflation data and the Bank of England's efforts to contain it, while the dollar remains relatively stable against other currencies. The cautious approach of the Federal Reserve in terms of interest rate hikes is also providing some support for the pound.
GOLD
- Gold prices fell 1% to around $1985 in Asian trade on Wednesday, as markets awaited more cues on U.S. monetary policy from upcoming Federal Reserve speakers and reports.
- Despite the decline, gold remained relatively well-bid amid fears of an economic slowdown this year and the impact of high interest rates on the global economy.
- The Federal Reserve officials will closely monitor economic data as they head toward their next meeting in May, and the release of the Beige Book later in the session could provide more insight into the economic conditions around the country.
- The dollar had edged lower Tuesday after data showed that the Chinese economy expanded 4.5% in the first quarter year-on-year, a sharp acceleration from the previous quarter's reading of 2.9%, boosting risk sentiment.
Closing statement:Gold prices remain highly sensitive to U.S. monetary policy cues, as investors look for signals on the potential timing of interest rate hikes. However, the yellow metal continues to find support from fears of an economic slowdown and global uncertainty, and the upcoming Federal Reserve speakers and reports will be closely watched for further market direction.
CRUDE OIL
- Crude oil prices slipped on Wednesday, as investors weighed the potential impact of interest rate hikes by the U.S. Federal Reserve, which could dampen oil consumption and slow economic growth.
- The market is currently pricing in an 86% likelihood of a 25-basis-point rate hike at the Fed's May policy meeting, while European Central Bank officials are also expressing concerns about inflation and advocating for continued interest rate increases.
- However, falling U.S. inventories and strong Chinese economic data provided some support to crude prices.
- According to an industry report cited by market participants, U.S. crude stocks fell by about 2.68 million barrels in the week ended April 14. The Energy Information Administration is set to release its official inventory report at 16:30 GMT+1 today.
DAX
- The DAX 40 index is currently in a bull trend, making support levels an attractive area to watch for potential buying opportunities. However, caution is advised as the index approaches its all-time high, with overbought conditions possibly emerging.
- Despite German economic sentiment falling unexpectedly lower, the EUR/USD currency pair is rising, taking advantage of a weaker US dollar.
- Final Eurozone CPI figures are due to be released soon, with expectations of a 6.9% year-on-year increase.
- The euro remains supported by expectations of further interest rate hikes from the European Central Bank, as well as stronger-than-anticipated economic growth in Spain.
