Posted at 22 May 2025 / Categories Market Roundups
Market Roundup
• Canada New Housing Price Index (MoM) (Apr) -0.4%, 0.1% forecast, 0.0% previous
• US Crude Oil Inventories 1.328M, -0.900Mforecast,3.454M previous
• US EIA Refinery Crude Runs (WoW) 0.089M ,0.330M previous
• US Crude Oil Imports 0.110M ,0.422M previous
• US Cushing Crude Oil Inventories -0.457M, -1.069M previous
• US Distillate Fuel Production 0.131M ,-0.069M previous
• US EIA Weekly Distillates Stocks 0.579M,-1.200M forecast,-3.155M previous
• US Gasoline Production 0.178M ,-0.327M previous
• US Heating Oil Stockpiles -0.348M, 0.292M previous
• US EIA Weekly Refinery Utilization Rates (WoW) 0.5%, 1.2% previous
• US Gasoline Inventories 0.816M,-1.760M forecast,-1.022M previous
Looking Ahead Economic Data(GMT)
•00:30 Japan au Jibun Bank Manufacturing PMI (May) 49.0 forecast,48.7 previous
•00:30 Japan Jibun Bank Services PMI (May) 52.4 previous
•02:00 New Zealand Budget Balance (Jan) -16.610B previous
•02:00 New Zealand Net Debt Forecast (Jan) 45.10% previous
•02:00 New Zealand Economic Forecast (Jan) -17.320B previous
Looking Ahead Events And Other Releases(GMT)
•01:30 Japan BoJ Board Member Noguchi Speaks
•02:00 New Zealand Annual Budget Release
Currency Summaries
EUR/USD: The euro strengthened on Wednesday as investors grew increasingly concerned about the fiscal health of major developed economies and a lack of progress in global trade talks.Sentiment remained fragile following Moody’s downgrade of the U.S. sovereign credit rating last week, which reignited fears over the country’s ballooning $36 trillion debt burden. President Donald Trump’s proposed tax cuts expected to add $3 trillion to $5 trillion to the deficit — further weighed on market confidence. Adding to the uncertainty were stalled U.S. trade negotiations, with both allies and rivals urging Washington to ease or remove existing tariffs. Investors were also watching the ongoing Group of Seven (G7) finance ministers' meetings in Canada for signs that a weaker dollar might be used to support broader trade. 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 rose on Wednesday but later retreated as investors digested hotter-than-expected UK inflation data. Consumer prices surged 3.5% year-on-year in April, up sharply from 2.6% in March, marking the highest level since January 2024 and the steepest month-on-month rise since 2022, when inflation was surging above 10%. Key components watched closely by the Bank of England also saw significant increases, reinforcing expectations that the BoE may need to slow its already cautious pace of interest rate cuts.The unexpected inflation spike has raised fresh concerns about the UK’s economic trajectory. While the economy grew strongly in early 2025, analysts now expect a slowdown in the second half of the year. Finance Minister Rachel Reeves expressed disappointment at the inflation data, with markets interpreting her remarks as further dampening the chances of a rate cut in the near term. 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).
USD/CAD: The Canadian dollar strengthened to a nearly two-week high against its U.S. counterpart on Wednesday as the greenback posted broad-based declines and investors dialed back bets on the Bank of Canada resuming its easing campaign next month.. The U.S. dollar opens new tab fell against a basket of major currencies amid uncertain prospects for the Trump administration's tax cut and spending bill. Domestic data on Tuesday showed that underlying inflation heated up in April. Investors see a 27% chance of a BoC rate cut at the June 4 policy announcement, down from 65% before the inflation report, swaps market data shows. The central bank left its benchmark rate on hold at 2.75% last month, the first pause since the easing campaign began last June. 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 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. The dollar was last 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
European shares closed higher on as investors worried about a deteriorating U.S. fiscal outlook and Treasury yields climbed following a poorly received sale of 20-year U.S. bonds..
UK's benchmark FTSE 100 closed down by 0.32 percent, Germany's Dax ended up by 0.36 percent, France’s CAC finished the day up by 0.40 percent.
U.S. stocks ended sharply lower on Wednesday, pressured by a surge in Treasury yields amid fears that President Donald Trump’s proposed tax-cut bill could significantly expand the U.S. government’s already-massive debt load.
Dow Jones closed down by 1.92 %percent, S&P 500 closed up by 1.61% percent, Nasdaq settled up by 1.41% percent.
Commodities Recap
Gold extended gains for a third session on Wednesday, hitting a one-week high, supported by a weaker dollar and rising safe-haven demand amid global economic and geopolitical uncertainty.
Spot gold was up 0.7% at $3,312.77 an ounce, as of 1355 ET (1755 GMT). U.S. gold futures settled 0.9% higher at $3,313.50.
Oil prices closed lower on Wednesday following remarks from Oman’s foreign minister that a new round of nuclear negotiations between Iran and the U.S. is scheduled for later this week.
Brent futures settled down 47 cents, or 0.7%, to $64.91 a barrel. U.S. West Texas Intermediate crude fell 46 cents, or 0.7%, to $61.57.