Equities : A gauge of global equity markets rose on Wednesday after Federal Reserve Chair Jerome Powell said interest rates will remain low, calming market jitters sparked by a jump in U.S. Treasury yields on fears a robust recovery would drive inflation higher.
UKs benchmark FTSE 100 closed up by 0.21% percent, Germanys Dax ended down by 0.80 %percent, France’s CAC finished the day up by 0.31%percent.
The NASDAQ index fell in choppy trading on Wednesday as investors continued to sell technology-related stocks, while the S&P 500 and the Dow Jones were supported by cyclical shares on hopes of a quicker economic recovery.
Dow Jones was closed up by 1.35 percent, S&P 500 closed up by 1.14 percent, and NASDAQ closed up by 0.99% percent.
Treasuries :Traders sent longer-term U.S. Treasury yields higher and steepened the yield curve on Wednesday but then pulled back some of those increases as Federal Reserve Chairman Jerome Powell again continued signaling the central bank will leave interest rates unchanged for a long time.
The benchmark 10-year yield was up less than a basis point at 1.3705% in afternoon trading.
Commodities: Oil prices climbed on Wednesday to fresh 13-month highs after U.S. government data showed a drop in crude output after a deep freeze disrupted
Brent crude futures rose $1.67, or 2.6%, to settle at $67.04 a barrel. The global benchmark hit a session high of $67.30 a barrel, its loftiest since Jan. 8, 2020.
U.S. West Texas Intermediate (WTI) crude futures ended $1.55, or 2.5%, higher at $63.22 a barrel, after touching $63.37, also their highest since Jan. 8, 2020.
Gold pared some losses after dipping more than 1% earlier on Wednesday, helped by dovish comments from Federal Reserve Chair Jerome Powell, but bullion struggled for traction as elevated U.S. Treasury yields dampened its allure as an inflation hedge.
Spot gold was down 0.4% at $1,798.10 per ounce by 02:30 p.m. EST (1930 GMT), after dropping as much as 1.2% earlier in the session.
EUR/USD: The euro edged higher against dollar on Wednesday as upbeat German data lifted euro. Strong exports and solid construction activity helped the German economy to grow by a better-than-expected 0.3% in the final quarter of last year, but stricter lockdown measures at home and abroad are clouding the outlook for Europe’s largest economy. The data, published by the Federal Statistics Office on Wednesday, marked an upward revision to its earlier estimate for a 0.1% expansion over the previous quarter.
Technically Immediate resistance can be seen at 1.2172(50%fib), an upside break can trigger rise towards 1.223 (61.8%fib).On the downside, immediate support is seen at 1.2112(38.2%fib), a break below could take the pair towards 1.2029 (23.6%fib).
GBP/USD: Sterling jumped above $1.42 against dollar on Wednesday, coming within touching distance of $1.43, as investors retained their bullish views on the currency. The pound is the best-performing G10 currency this year, up nearly 4% against the dollar and 3.2% against the euro as investors bet Britain’s rapid COVID-19 vaccine rollout will lead to a quicker economic rebound. Sterling was 0.5% higher on the day at $1.4136 by 12:00 GMT.
Technically Immediate resistance can be seen at 1.4234 (Daily high), an upside break can trigger rise towards 1.4100(23.6%fib).On the downside, immediate support is seen at 1.4087 (5DMA), a break below could take the pair towards at 1.4055 (38.2%fib).
USD/CAD: The Canadian dollar strengthened to its highest level in three years against its U.S. counterpart on Wednesday, as oil prices rose and Canadian bond yields climbed at a faster pace than their U.S. counterparts. The pair was trading 0.5% higher at 1.2523 to the Us dollar, or 79.85 U.S. cents, having touched its strongest intraday level since February 2018 at 1.2521. U.S. crude oil futures settled 2.5% higher at $63.22 a barrel on Wednesday after U.S. government data showed a drop in crude output after a deep freeze disrupted production last week
Technically Immediate resistance can be seen at 1.2563 (38.2%fib), an upside break can trigger rise towards 1.2612(50%fib).On the downside, immediate support is seen at 1.2500 (23.6%fib), a break below could take the pair towards 1.25400 (Psychological level).
USD/JPY: The dollar strengthened against the yen on Wednesday as investors increased bets that a global economic recovery will boost riskier assets. U.S. Federal Reserve Chair Jerome Powell reiterated on Tuesday that interest rates will remain low and the Fed will keep buying bonds to support the U.S. economy. The dollar rose against traditional safe haven currencies, adding 0.2% to 105.485 Japanese yen.
Technically Strong resistance can be seen at 105.88 (50%fib), an upside break can trigger rise towards 106.15(38.2%fib).On the downside, immediate support is seen at 105.58 (61.8%fib), a break below could take the pair towards 105.00 (Psychological level).
Technical comment: The markets may be exposed to violent waves of fluctuation before the end of the last trading sessions next Friday, so we prefer to reduce the number of open positions and adjust the stop loss to the entry point for profitable trading positions while not venturing into opening new positions currently