This is what you need to know to trade today Wednesday March 29:
Risk-on money flows continue to drive financial market action midweek, with US stock index futures trading decisively higher during the European morning. After two days of declines, the DXY Dollar Index is holding on to a modest recovery and the 10-year bond yield continues to hover above 3.5%. Pending home sales will be published in the US economic agenda.
Wall Street’s main indices were mixed on Tuesday as sharp decline in technology stocks offset strong performance in energy stocks. In the absence of top-notch macroeconomic data releases, market participants are likely to continue to pay close attention to risk perception. Earlier in the day, the main Asian stock indices rose sharply on news that the e-commerce giant Alibaba Group Holdings planned to split its business into six units and make them public. At time of writing, Hong Kong’s Hang Seng Index was on track to end the day up close to 2%.
As a negative note, China’s Taiwan Affairs Office threatened retaliation for Taiwan President Tsai Ing-wen’s visit to the United States on Wednesday. However, this news does not appear to be influencing risk sentiment.
During the Asian session, Australian data has revealed that the monthly Consumer Price Index (CPI) fell to 6.8% yoy in February from 7.4% in January. This reading came in below market expectations of 7.1% and has revived the expectations that the Reserve Bank of Australia (RBA) will stop its tightening cycle at next week’s monetary policy meeting. In turn, the pair AUD/USD it has pulled back and is now down 0.5% on the day, sitting at 0.6675.
He EUR/USD has undergone a technical correction early on Wednesday, but remains comfortably above 1.0800. He Gfk consumer confidence index in Germany has fallen to -29.5 in April from -30.6, but this reading has not caused a noticeable reaction in the markets.
He GBP/USD posted strong gains for the second day in a row on Tuesday before entering a consolidation phase slightly above 1.2300 on Wednesday. He Bank of England Financial Policy Committee will report its quarterly publication later in the session.
He USD/JPY it has gained bullish momentum and has advanced towards 132.00 early on Wednesday. The Governor of the Bank of Japan, Haruhiko Kuroda, declared on Wednesday that Japan is “closer than ever to sustainably achieving the 2% inflation target.”.
After Tuesday’s rebound, the price of gold it has lost traction and pulled back to the $1,960 area on Wednesday. Easing fears about a global financial crisis and recovering yields make it difficult for XAU/USD to hold firm.
He Bitcoin it has regained its traction early Wednesday and is now up almost 3% just above $28,000. He ethereum it was up more than 3% on Tuesday and continues to rise on Wednesday. ETH/USD gains 2% on the day at $1,810.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
