Posted at 07 May 2025 / Categories Market Roundups
Market Roundup
•Fed keeps rates steady but eyes rising price, unemployment risks
•U.S., China to discuss trade in Switzerland at weekend
• US Crude Oil Inventories -2.032M,-1.700M forecast,-2.696M previous
• US EIA Refinery Crude Runs (WoW) -0.007M, 0.189M previous
• US Crude Oil Imports 00.673M,-0.663M previous
• US Cushing Crude Oil Inventories-0.740M, 0.682M previous
• US Distillate Fuel Production 0.041M, -0.017M previous
• US Fed Interest Rate Decision 4.50%,4.50% forecast, 4.50% previous
• US Consumer Credit (Mar) 10.17B, 9.80B forecast, -0.61B previous
Looking Ahead economic Data(GMT)
•03:35 Japan 10-Years JGB Auction 1.405% previous
Looking Ahead Events And Other Releases(GMT)
• 00:00 Japan Monetary Policy Meeting Minutes
Currency Summaries
EUR/USD: The euro eased on Wednesday as dollar firmed after the Federal Reserve left interest rates unchanged while warning of higher inflation and labor market risks. The Fed kept its benchmark interest rate steady in the 4.25%-4.50% range, but said that the risks of higher inflation and unemployment had risen and that the U.S. economic outlook remains uncertain. Following the Fed’s rate decision, Chair Jerome Powell noted that while uncertainty has dampened sentiment, the U.S. economy remains fundamentally strong. Markets are still largely pricing in a rate cut of at least 25 basis points from the Fed at its July meeting . The euro was down 0.44% at $1.13165, snapping three straight session of gains. Immediate resistance can be seen at 1.1405 (April 28th high), an upside break can trigger rise towards 1.1530 (23.6%fib).On the downside, immediate support is seen at 1.1266 (38.2%fib), a break below could take the pair towards 1.1198 (April 11th low).
GBP/USD: The British pound dipped slightly on Wednesday after the Federal Reserve left interest rates unchanged, in line with market expectations.The Fed kept its benchmark interest rate steady in the 4.25%-4.50% range, but said that the risks of higher inflation and unemployment had risen and that the U.S. economic outlook remains uncertain. During press conference, Fed Chair Jerome Powell said the central bank cannot make preemptive policy decisions until there is clarity about where the economy is headed. Investors are now turning their attention to the Bank of England’s policy meeting, set for Thursday, awaiting clues on future interest rate decisions. Sterling weakened 0.64% to $1.3282. Immediate resistance can be seen at 1.3343(April 24th high), an upside break can trigger rise towards 1.3449(23.6%fib).On the downside, immediate support is seen at 1.3253(38.2%fib), a break below could take the pair towards 1.3161 (April 15th low).
USD/CAD: The Canadian dollar slipped against the U.S. dollar on Wednesday as falling oil prices and a cautious Federal Reserve weighed on sentiment. The Fed held rates steady, as expected, but flagged rising risks of inflation and unemployment amid ongoing pressure from Trump-era tariffs, clouding the U.S. economic outlook.Attention now turns to Canadian employment data due Friday, which could provide insight into domestic economic strength. Economists expect a modest 2,500 job gain for April and a slight uptick in the jobless rate to 6.8% from 6.7%. Markets currently price in a roughly 50% chance of a 25-basis-point rate cut by the Bank of Canada in June, following its decision to pause easing last month. The loonie was trading 0.3% lower at 1.3915 per U.S. dollar, after moving in a range of 1.3764 to 1.3820. Immediate resistance can be seen at 1.3844 (Daily high), an upside break can trigger rise towards 1.3894 (38.2%fib).On the downside, immediate support is seen at 1.3780(23.6%fib), a break below could take the pair towards 1.3740(Lower BB)
USD/JPY: The U.S. dollar strengthened against the Japanese yen on Wednesday after the Federal Reserve kept U.S. interest rates unchanged in a move that market participants expected. The Federal Open Market Committee (FOMC) concluded its two-day policy meeting with a unanimous decision to leave interest rates unchanged at 4.25%-4.50%, where they've been since December.Federal Reserve Chair Jerome Powell reinforced that sentiment, saying the central bank cannot act pre-emptively when the path forward is unclear. After the central bank's decision on rates, Fed Chair Jerome Powell acknowledged uncertainty has soured sentiment among people and businesses, but the economy itself is still healthy. In addition, he said rate cuts are possible if supported by economic data but the Fed cannot make preemptive policy changes until there is more clarity. Immediate resistance can be seen at 145.43(50%fib)an upside break can trigger rise towards 146.00 (Psychological level) .On the downside, immediate support is seen at 143.31(38.2%fib)a break below could take the pair towards 142.00(Psychological level).
Equities Recap
European shares rose on Wednesday after the Federal Reserve left interest rates unchanged, in line with market expectations.
UK's benchmark FTSE 100 closed down by 0.44percent, Germany's Dax ended down by 0.58 percent, France’s CAC finished the day down by 0.91 percent.
U.S. stocks rose Wednesday in volatile trade, lifted late by a rally in semiconductor shares after reports suggested AI chip regulations may be eased.
Dow Jones closed up by 0.70 %percent, S&P 500 closed up by 0.43% percent, Nasdaq settled up by 0.27% percent.
Commodities Recap
Gold prices extended their decline on Wednesday, pressured by a firmer dollar and cooling China-U.S. trade tensions, as traders reacted negatively to Fed Chair Jerome Powell’s cautious comments on the U.S. economic outlook.
Spot gold was down 1.8% to $3,368.42 an ounce by 03:32 ET (19:32 GMT), while U.S. gold futures settled 0.9% lower at $3,391.9.
Oil prices dropped over $1 per barrel on Wednesday as skepticism over progress in upcoming U.S.-China trade talks weighed on sentiment, while renewed hopes for an Iran-U.S. nuclear deal eased concerns about supply constraints.
Brent crude futures settled $1.03, or 1.66%, lower at $61.12 a barrel while U.S. West Texas Intermediate crude lost $1.02, or 1.73%, lower at $58.07 a barrel.