US dollar advanced against the euro on Wednesday due to fears that tomorrow’s comments by the European Central Bank will have a negative impact on the common currency.
At the same time, some of the risky commodity currencies remained near multi-month highs amid soothing concerns about China’s economy outlook.
The euro sank, moving away from one-week high against the dollar of $ 1.1386 reached earlier in the session. Euro lost 0.41 percent to $ 1.1313 in anticipation of the ECB meeting on Thursday. The currency has weakened, despite analysts expectations that the regulator will not likely announce further stimulus.
Australian and Canadian dollar fell slightly, moving away from multi-month highs in relation to the “greenback”, but were still close to this level because of the yelling of investors to riskier assets.
US dollar strengthened against the yen by a half of percent on hawkish comments from Kuroda saying stimulation program can be extended to prevent Yen from further strengthening. The dollar index gained 0.34 percent to 94.39 points.
Sales in the secondary housing market in the US rose in March more than expected, according to a report released on Wednesday by the National Retail Association, which increased optimism about the housing market and US economy in overall.
The data showed that the volume of home sales in the secondary market rose in March by 5.1% to a seasonally adjusted 5.33 million units from 5.07 million revised figure for February. The consensus forecast reported an increase of 3.5% to 5.30 million units.The report shows the health of the US housing market and is seen as a key indicator of the overall state of the economy.
Oil prices receded from the lows in Wednesday after the release of EIA data showing a smaller-than-expected increase in crude inventories in the week ending 15 April.
June WTI futures pared losses, managed to test the resistance level of $44.00 retreating to 43.80 level.
On the ICE exchange EIA report triggered abrupt surge of Brent which growth slowed only at 45.50 resistance level.
The message the Energy Information Administration showed that last week crude oil inventories increased by 2.08 million barrels, bringing the total amount of crude oil reserves to 538.6 million barrels. Analysts had expected inventories to increase by 2.4 million barrels.
Indicators were published the next day after the American Petroleum Institute reported that last week crude oil inventories rose by 3.1 million barrels to 539.5 million amid expectations of an increase of 1.6 million barrels.
Earlier Wednesday, oil sharply went into the negative, because the three-day strike ended in Kuwait and traders expect that the level of production in the country will soon return to normal.
A nationwide strike in Kuwait, which cut from the market 1.3 million barrels of oil per day, supported prices after the major manufacturers have not been able to agree on freezing oil in Doha on last Sunday
The end of strike sling up old and kind surplus concerns which are now ignored by the market. As rumors and news end market will probably turn bearish and return below $40 level. Its highly recommended to not join the current hype seen on the market.