On Monday, FedEx (FDX) and Microsoft (MSFT) announced a multi-year collaboration that will combine FedEx’s logistics capabilities with Microsoft’s cloud technology. The shares of FedEx jumped 10.85% on Monday after the announcement. “FedEx has been reimagining the supply chain since our first day of operation, and we are taking it to a new level with today’s announcement,” said FedEx CEO Frederick Smith in a statement. "Together with FedEx, we will apply the power of Azure, Dynamics 365 and their AI capabilities to this urgent need, building new commerce experiences that transform logistics for our mutual customers around the world." Microsoft Chief Executive Satya Nadella said in a statement.
Asian markets traded mixed on Wednesday following the People's Bank of China's (PBoC) decision to keep its interest rates unchanged at 3.85%. On Tuesday Wall Street ended lower after a report from medical news website Stat cast doubt over positive early results from a Moderna Covid-19 vaccine trial. The Dow Jones retreated 391 points or 1.6% to 24,207. The S&P 500 shed 31 points or 1.1% to 2923. The NASDAQ lost 50 points or 0.5% to 9185.
Oil prices received some support from the API report. According to the report, the US weekly crude oil stock declined to -4.8 million barrels on May 15 from previous 7.6 million. The weekly oil reports continue to show a decrease in inventories of crude oil stock which will ease fears of storage problems.
GBP/USD dropped to the session low of 1.2220 after UK CPI slowed to 0.8% in April 2020, from 1.5% in the previous month and slightly below market expectations of 0.9%. That was the lowest rate since August 2016.
The yellow metal surged on Tuesday after US Treasury Secretary Steven Mnuchin warned that if coronavirus lockdown continued for months, then the US economy could face permanent damage.
On Tuesday Jerome Powell, Chairman of the Federal Reserve gave a lengthy online testimony before a Senate committee. He said that as the Fed balance sheet goes from $3.8 trillion in September to nearly $7 trillion now and higher in the future, he doesn’t see inflation or financial stability issues coming from the size of Fed holdings.
Moving ahead today, the important events to watch:
Canada core CPI – 12.30 GMT
US Crude Oil Inventories – 14.30 GMT
FOMC minutes – 18.00 GMT
Japanese Economy Minister Yasutoshi Nishimura said on Wednesday, the government will look at the coronavirus data up until this day before lifting the State of Emergency in the remaining prefectures. So far, more than 16,300 people have tested positive for the coronavirus in Japan and over 770 have died. Russia reported a further 8,764 coronavirus cases Wednesday, pushing its total case tally to 308,705. The death toll rose by 135 to a total 2,972 fatalities.
GOLD: The gold price momentum remained bullish from yesterday.
The important levels to watch for today: Support- $1735 and $1720 Resistance- $1760 and $1775.
EUR/USD: The pair currently trading above 1.0950 after the mixed Eurozone inflation report.
The important levels to watch for today: Support- 1.0910 and 1.0870 Resistance- 1.0980 and 1.1010.
Quote of the day: You learn nothing from trading if you think you are right all the time.