Posted at 21 May 2025 / Categories Market Roundups
Market Roundup
• Australia MI Leading Index (MoM) (Apr) -0.0% -0.2% previous
• New Zealand Credit Card Spending (YoY) (Apr) 0.5% , 0.7% previous
•UK Core CPI (YoY) (Apr) 3.8%, 3.6%forecast, 3.4% previous
•UK Core CPI (MoM) (Apr) 1.4% , 1.2% forecast, 0.5% previous
•UK Core RPI (MoM) (Apr) 1.8%, 0.3% previous
•UK Core RPI (YoY) (Apr) 4.2% ,2.8% previous
•UK CPI (MoM) (Apr) 1.2%,1.1% forecast,0.3% previous
•UK CPI (YoY) (Apr) 3.5%, 3.3% forecast, 2.6% previous
•UK CPI, n.s.a (Apr) 138.20, 136.50 previous
•UK RPI (MoM) (Apr) 1.7%, 1.5% forecast, 0.3% previous
•UK RPI (YoY) (Apr) 4.5%,4.2% forecast, 3.2% previous
Looking Ahead Economic Data(GMT)
•09:00 UK 6-Year Treasury Gilt Auction
•09:30 German 10-Year Bund Auction 2.470% previous
Looking Ahead Events And Other Releases(GMT)
•No Events
EUR/USD: The euro strengthened on Wednesday as investors fretted about the fiscal outlook of major developed economies and the lack of progress on trade deals. Investor sentiment has been fragile since Moody's last week downgraded U.S. credit rating, stoking worries about the country's $36 trillion debt pile, with U.S. President Donald Trump pushing for tax cuts that could worsen the debt load by $3 trillion to $5 trillion.There are also concerns about a lack of progress on U.S. trade talks with foes and allies pressing Washington to ease or eliminate its tariffs. Markets were also monitoring the Group of Seven finance minister meetings currently underway in Canada for any hints that a weaker dollar could help advance trade negotiations. Immediate resistance can be seen at 1.1370(23.6%fib), an upside break can trigger rise towards 1.1462(Higher BB).On the downside, immediate support is seen at 1.1187(38.2%fib), a break below could take the pair towards 1.1103(Lower BB).
GBP/USD: The British pound initially gained but gave up ground as investors digested UK inflation data.Britain suffered a bigger-than-expected inflation surge in April, including in areas watched closely by the Bank of England which investors now believe will have to slow its already gradual pace of interest rate cuts.Inflation leapt to 3.5% in April from 2.6% in March, the Office for National Statistics said, the highest reading since January 2024 and the largest increase between two months since 2022 when inflation was rocketing above 10%.The data will add to unease over the outlook for Britain's economy which grew strongly in early 2025 but is likely to slow in the second half of the year.Finance minister Rachel Reeves said she was "disappointed" by the inflation figures which further reduced the chance of an interest rate cut in the coming months in the eyes of investors. Immediate resistance can be seen at 1.3405(23.6%fib), an upside break can trigger rise towards 1.3449(Higher BB).On the downside, immediate support is seen at 1.3217(38.2%fib), a break below could take the pair towards 1.3164(Lower BB).
AUD/USD: The Australian dollar rose on ednesday as the U.S. dollar weakened amid renewed concerns about the economic and fiscal outlook.U.S. President Trump urged Republicans to back a bill extending his 2017 tax cuts but faced resistance from a few holdouts.Investors fear the bill may speed up the growth of the U.S. budget deficit, with Moody’s recent downgrade of the country’s credit rating intensifying concerns over the rising debt. Meanwhile, the Australia dollar had came under pressure on Tuesday after the Reserve Bank of Australia cut interest rates as expected and signaled downside risks to the economy.Policymakers noted continued easing in inflation and a decline in upside risks, with updated forecasts indicating that headline inflation will remain near the midpoint of the 2–3% target range.At GMT 07:50, the Australia dollar was up 0.35% to 0.6446 against the US dollar. Immediate resistance can be seen at 0.6491(38.2%fib), an upside break can trigger rise towards 0.6513(Higher BB).On the downside, immediate support is seen at 0.6385(50%fib), a break below could take the pair towards 0.6319(Lower BB).
USD/JPY: The U.S. dollar extended fall against the yen on Wednesday as investors sought safe-haven assets amid U.S. fiscal uncertainty.Investor sentiment remains shaky after Moody's downgrade of U.S. credit, amid concerns Trump's tax plan could add up to $5 trillion to the nation's $36 trillion debt.Concerns also persist over stalled U.S. trade negotiations, with both allies and adversaries urging Washington to roll back tariffs. Data on Wednesday showed Japanese shipments to the U.S. fell in April even as exports rose for the seventh straight month, highlighting the toll President Donald Trump's tariffs could take on the fragile economic recovery in Japan. At GMT 08:59, the dollar was down 0.57% to 144.87 against the Japanese yen. Immediate resistance can be seen at 144.61 (Daily high)an upside break can trigger rise towards 145.47(61.8%fib) .On the downside, immediate support is seen at 143.63(50%fib)a break below could take the pair towards 141.81(38.2%fib)
Equities Recap
Asian stocks firmed as investors fretted about the fiscal outlook for major developed economies and the lack of progress on trade deals.
China A 50 was up 0.69% , South Korea's KOSPI was up 0.91%,Hang Seng was up by 0.56%.
Commodities Recap
Gold prices hit one-week highGold prices climbed nearly 1% on Wednesday, reaching a one-week high, as a softer dollar and U.S. fiscal uncertainty—driven by Congressional debate over a major tax bill—boosted safe-haven demand.
Spot gold was up 0.9% at $3,319.51 an ounce, as of 0643 GMT. Earlier in the session, bullion touched its highest level since May 12.U.S. gold futures gained 1.1% to $3,320.30.
Oil prices rose over 1% on Wednesday after reports that Israel is preparing to strike Iranian nuclear sites sparked concerns about potential supply disruptions in the Middle East.
Brent futures for July rose 68 cents, or 1.04%, to $66.06 a barrel, by 0630 GMT. U.S. West Texas Intermediate crude futures for July climbed 70 cents, or 1.1%, to $62.73.