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Gold retreats from record high ahead of employment report
Taiwan's stock market displays resilience despite experiencing its strongest earthquake in 25 years.
Yuan under pressure
Eurozone's CPI figures disappoint
Investors await clarity from Fed Chair Powell's speech
Asian Markets
Asia faced a seismic event as Taiwan experienced its strongest earthquake in 25 years, impacting investor sentiment. Despite the adversity, Taiwan's market exhibited resilience, emerging as one of the better performers among Asian equities on Wednesday. In China, the yuan traded under, as fear that Chinese authorities may favor a weaker currency to stimulate growth rather than implementing direct economic interventions is priced by the markets.
Eurozone
Volatility gripped the Euro in response to Eurozone economic data releases. March's flash CPI figures disappointed, with inflation registering at 2.4% YoY, slightly below expectations. This, coupled with underwhelming core CPI and unemployment rate data, suggests a potential economic slowdown in the Eurozone. As the US economy continues to outperform the Eurozone, we see it influencing EURUSD dynamic.
Gold
After reaching a new record high, gold prices are retreating ahead of the US session. Doubts regarding the Federal Reserve's commitment to multiple interest rate cuts in 2024 bolstered the US Dollar, prompting profit-taking in gold. Investors await clarity from Fed Chair Powell's forthcoming speech and Friday's non-farm payrolls report to gauge the likelihood of future rate cuts.
