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DAILY MARKET REPORT

Today, the Investors and traders will closely monitor the release of the US Federal Reserve monetary policy March meeting minutes in which members decided to raise the federal funds rate by 25 basis points.

DAILY MARKET REPORT

Today, the Investors and traders will closely monitor the release of the US Federal Reserve monetary policy March meeting minutes in which members decided to raise the federal funds rate by 25 basis points. The minutes will be released later in the day.

On Tuesday, Fed Governor Lael Brainard said the central bank could start reducing its balance sheet as soon as next month as inflation is too high.

“The committee will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting,” Brainard said. "I think we can all absolutely agree inflation is too high and bringing inflation down is of paramount importance," she added.  

EQUITIES

Wall Street ended lower on Tuesday following the release of weaker-than-expected ISM services PMI data and the hawkish comments from Federal Reserve Governor Lael Brainard. Meanwhile, European shares extend losses after the German factory orders fall much more than expected

OIL

Crude oil futures traded lower during the Asian session on Wednesday driven by weak API inventory data. The data showed the US oil inventories rose by 1.08 million barrels in the week ended April 1st 2022, compared with market expectations of a 2.056 million decline.

CURRENCIES

In the currency market, the US dollar continues to trade near the multi-year high against the safe-haven currency Japanese yen and the Euro. Meanwhile, Commodity-linked currencies such as the Australian and Canadian dollars slightly retreated from their recent peaks on Wednesday.

GOLD

The Safe-haven metal fell on bets the Federal Reserve will act more aggressively to bring inflation under control. At the time of writing, the metal was trading below $1925. Overall, the momentum remains bullish throughout the European session.

Economic Outlook

On the data front, the US ISM services PMI increased to 58.3 in March from 56.5 in February, but the data came lower than the market forecasts of 58.4. The US Services PMI registered 58.0 in March of 2022, up from 56.5 in February.

Moving ahead today, the important events to watch:

US – EIA crude inventories: GMT – 14.30

US – FOMC meeting minutes: GMT – 18.00

Coronavirus update:

Worldwide, more than 490 million people have been confirmed infected and more than 6.13 million have died. The United States has confirmed over 80 million cases and has had more than 980,000 deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair extends its slide to a fresh weekly low of 1.0875 on Wednesday. The next downside levels to watch are 1.0850 and 1.0820. On the flip side, the immediate resistance at 1.0940 and 1.1000.

eurusd

The important levels to watch for today: Support- 1.0850 and 1.0820 Resistance- 1.0910 and 1.0950

GOLD: The precious metal needs a clear break of the previous session high $1945 to move further upside $1965/70. On the flip side, a breakdown through $1910 would negate that bias and suggest a test of the $1890 support region.

gold neww

The important levels to watch for today: Support- 1910 and 1890 Resistance- 1930 and 1945.

Quote of the day - I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years- Warren buffet.

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