Another field day for Central Bank members

Midday Update

The market opened with Fed’s hawkish tone fading as the Dollar retreated from a 2-year high. The Fed indicated they are willing to cut down its balance sheet by $1 trillion a year. Traders continue to digest the impact of the fed March minutes released on Wednesday. ECB member Buba will be speaking later today and a release of ECB monetary policy meeting minutes while Treasury secretary Yellen and FOMC member Bullard will also be speaking later today. The Ukrainian foreign minister will be attending NATO meetings as President Zelensky solicits weapons.

GBPUSD trimmed earlier gains from 1.3100 although bulls continue to maintain a 0.05% gain ahead of the BoE member Pill’s speech later in the New York session. The pair continues to be underpinned by a stronger dollar and a break below 1.30500, a 3-week low may renew bearish interest. A hold above 1.30500 may cause bulls to attempt a break above 1.3100 near-term resistance.

The EURGBP pared losses ahead of the ECB monetary policy meeting minutes scheduled for release early New York trading session. The EUR remains weak as rising inflationary pressure continues to put selling pressure in the near term. The pair is down -0.05% after bouncing off a near-term resistance at 0.83500 and a possibility to retest 0.8300, 4-week support before a remarkable trade direction.

AUDCAD plunged down -0.36% crossing below psychological support at 0.9400. The trend has a possibility to trade lower towards 0.9350. The AUD trimmed gains post hawkish RBA meeting minutes as momentum fades. Australia continues to suffer losses as the Chinese lockdown weighs down on commodity demand. The trend is turning bearish, capped by a 50-day moving average at 0.9400.

European equities markets recovered losses as major indices rebounded from 2-weeks lows. The CAC40 was up by +0.85% after bouncing off a 6450-support area. Bulls remain capped by a 6600 near-term support-turned-resistance. The Dax soared +0.46% after slightly breaking below 14110.00, 3-week support. Critical areas to watch are the 13920-support area and a 14570-resistance area.

US equities markets closed lower as the hawkish Fed boosted dollar strength. The Dow Jones Futures index was up 0.05% from 34320 support, pre bell as Dollar strength receded. Nasdaq futures were up +0.32% from 14400 near-term support although upside gains remain challenged by the 14800 near-term resistance. The S&P500 futures gained +0.25% and a bearish outlook is reinforced by a 50-day moving average on the H1 chart.

On commodity markets, Oil markets traded high after a sharp drop on Wednesday as IEA reflected a possible 120 million barrels of oil injection from their strategic reserves to curb price gains. The Brent futures were up +1.37% from 100.40 per Barrel. Bears may target March 2022 lows at 97.00. USWTI soared 0.20% and a possibility to trade below 94.37 to $90/barrel, prewar levels.