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Sentiment in the FX markets was quite mixed as the dollar was seen overall strengthening by Wednesday morning. The JPY clearly weakened, while the EUR traded only moderately lighter against the greenback. In EM markets results were also mixed with the USD/TRY strongly declined for the second day in a row while the USD/MXN and USD/ZAR pairs were trading again clearly higher.
Sentiment in the crypto market was mixed with the BTC dominance further declining below 48 per cent while the market cap stood just above $2.1 trillion. By Wednesday morning Dogecoin edged higher, while some higher market cap coins like Ripple and Bitcoin were under pressure.
Many European markets continued moving moderately higher by Wednesday morning following the positive sentiment from the earnings season, while awaiting further impulses from the Federal Reserve decision. The sentiment did however not extend to all markets, as for example the Swiss 20 index continued to push lower. On the other hand the India 50 (USD) index continued to rally higher, reaching a new two weeks high, despite the impact from the pandemic on the country.
Wednesday is set to be another day of major earnings releases as companies like Teledoc, Ford, eBay and Qualcomm as well as the major tech companies like Apple and Facebook. Also on Wednesday the State Street Investor Confidence Index and Canadian retail sales data can be expected. Later in the Asian-Pacific trading session New Zealand publishes its trade balance statistic for March.
The EUR/USD pair moved again below the 1.21-level as the dollar overall strengthened. Still, the move was rather limited as the euro itself also was performing quite well against some other majors like the CHF or JPY, while trading mostly against the CAD and GBP.
House price index data from both the S&P/Case-Shiller and the FHFA indicated and continued growth in terms of prices around twelve per cent on an annual basis with both statistics exceeding set expectations.
On Wednesday the focus might again tilt towards central banks. On Wednesday afternoon the President of the ECB will participate in a talk at the Aspen Security Forum. Later on Wednesday the FOMC will announce its monetary policy decision. Analysts expect mostly that the central banking organisation will retain the near-zero interest rates as well as repeating its pledge to keep buying bonds in the market.
After a few days of relative stability, gold prices noticeably declined by Wednesday morning with factors like the stronger dollar as well as higher yields on US Treasury Notes, such as the 10-year benchmark edging towards 1.65% could have fundamentally influenced these markets.
Other precious metals like platinum and silver were also trading lower. While palladium also moved slightly North by Wednesday, prices are clearly up on a weekly basis as the rare precious metal earlier marked another all-time high for the third trading day in a row.
Oil prices edged higher on Tuesday after a mixed start in the new week. One factor was that the OPEC+ Joint Ministerial Monitoring Committee discussed only moderate plans to increase production as planned and announced not to hold a further meeting on Wednesday indicating confidence in the current quotas.
The later announcement by the American Petroleum Institute (API) the crude oil stockpiles were up by 4.3 million barrels compared to the previous week seemed to have caused only a minor dip with prices again edging high at the start of the European trading session on Wednesday.
In terms of data on Wednesday the usual weekly oil, gasoline and distillate inventory statistics from the Energy Information Administration (EIA) should be expected.
While the US 500 index managed to reach a new all-time high during intraday trading but settled then at the end of the day lower just as the other major US indices like the US Tech 100 or US 30 indices.
Shares of the Google holding company Alphabet moved strongly to the upside in after-hours trading following positive earnings as the company reported earnings-per-share of $26.29 and a revenue of $55.31 billion, which both significantly beat set expectations. Key growth areas were the Google Cloud and YouTube ad segments.
Microsoft on the other hand was down in after-hours trading despite managing to moderately outperform expectations on both earnings and revenues as some analysts expressed hope of even further improvements, while revenues and profits were quite similar to the previous quarter.
On Wednesday further earnings can be expected including from companies like Boeing, Shopify, Spotify, Garmin before markets open and then from blue chips like Ford, Facebook and Apple after markets close.
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