Forex News

The New Zealand dollar strengthened against most major currencies in the Asian session on Wednesday.

The Australian dollar strengthened against other major currencies in the Asian session on Wednesday.

Business sentiment survey data from Germany is the major report due on Wednesday, headlining a light day for the European economic news. At 4.00 am ET, the ifo Institute is scheduled to issue Germany's business confidence survey results. The business sentiment index is expected to climb to 88.9 in April from 87.8 in March.

European stocks are likely to open on a positive note Wednesday after electric-vehicle giant Tesla struck an upbeat tone despite reporting a big drop in quarterly profits. The company said it would accelerate the production of more affordable models, beginning in the second half of next year "if not late this year." Several technology heavyweights such as Microsoft, Alphabet, Meta Platforms and other big names including Boeing, Intel, American Airlines, Chevron and Exxon Mobil are scheduled to announce their quarterly earnings this week. The dollar slipped as traders await more economic data this week, including the release of first-quarter U.S. GDP data as well as the core personal-consumption expenditures (PCE) price index, which is the Fed's preferred measure of inflation. Several ECB officials are scheduled to speak later today, with investors looking for additional clues on the future trajectory of interest rates in the euro area. Asian markets were broadly higher, with Japanese and Hong Kong stocks leading regional gains. The yen was pinned near 34-year lows ahead of a Bank of Japan policy meeting due later in the week. Gold edged up slightly after having hit its lowest since April 5 in the previous session. Oil prices were little changed after rallying sharply in the previous session as industry data showed shrinking U.S. crude stockpiles. U.S. stocks rose for a second straight session overnight as investors digested a batch of strong corporate earnings, weak manufacturing data and mixed readings on the housing sector. Treasury yields pulled back after a survey showed U.S. business activity cooled in April to a four-month low. The Dow rose 0.7 percent, the S&P 500 climbed 1.2 percent and the tech-heavy Nasdaq Composite jumped 1.6 percent. European stocks also gained for a second straight session on Tuesday and logged their best day in six weeks amid speculation over the timing of ECB and BOE rate cuts. The pan European STOXX 600 rallied 1.1 percent. The German DAX surged 1.6 percent and France's CAC 40 gained 0.8 percent while the U.K.'s FTSE 100 edged up 0.3 percent to a fresh record closing high.

Indian shares opened on a positive note Wednesday as weak U.S. business activity data revived rate cut hopes and electric-vehicle giant Tesla struck an upbeat tone despite a sales miss.

Asian stock markets are a sea of green on Wednesday, following the broadly positive cues from global markets overnight, as data showing a slowdown in U.S. manufacturing activity in the month of April raised hopes the US Fed will start thinking of cutting interest rates soon. Traders also continue to pick up stocks at relatively reduced levels after the recent sell-off.