News

US total retail sales rose 1.4% in March, beating the expected 1.3% after rising 0.2% a month earlier. On an annualised basis, sales rose 4.4%, the fastest pace since December 2023, which contrasted with the slowdown in inflation to 2.4% y/y. The acceleration in American spending can be attributed to a desire to stock up […]

The post US Sales Jump Gives USD Relief, But Driven by Fears appeared first on Action Forex.

Sector Overview

Today’s stock market heatmap reveals a stark divergence in sector performances. The technology sector is awash in red, with significant declines, while energy and certain areas of healthcare show resilience.

• 📉 Technology & Semiconductors: Key players like Nvidia (NVDA) plummeted 5.98%, leading a broader decline in the semiconductor space. Echoing this downturn, both Microsoft (MSFT) and Apple (AAPL) fell by 1.87% and 2.55%, respectively, indicating a bearish sentiment towards tech stocks.
• 📈 Energy Sector: In contrast, energy stocks like Exxon Mobil (XOM) and Chevron (CVX) gained 1.53%, buoyed by rising oil prices. This indicates a potential shift towards more traditional, commodity-based sectors amidst tech uncertainties.
• 📚 Healthcare Innovations: Despite a general downtrend in drug manufacturers, companies like Abbott (ABT) climbed 0.71%, pointing to investor interest in healthcare innovation amidst varying sector dynamics.

Market Mood and Trends

The overall market sentiment today is one of caution mixed with opportunity-seeking in more stable sectors. The heavy sell-off in technology suggests investor anxiety over future growth prospects. Uncertainty in semiconductor supply chains and fluctuating tech valuations are key contributors to today’s downward pressure.

Conversely, the energy sector’s gains reflect a favorable reaction to rising oil prices and steadying demand. The upward movement in certain healthcare stocks suggests continued confidence in innovation and long-term growth despite short-term fluctuations.

Strategic Recommendations

Investors should consider re-evaluating their portfolios to balance potential risks in technology with opportunities in energy and healthcare. With today’s notable tech decline, there may be buying opportunities for long-term holdings, but caution is advised.

• 📊 Diversification: Consider diversifying into more stable sectors, especially those showing resilience like energy and select healthcare companies, to mitigate the volatility seen in tech.
• 📈 Focus on Energy: The gains in energy suggest a favorable outlook amid rising commodity prices. Energy companies may continue to perform well as demand stabilizes worldwide.

Staying informed with real-time data and adjusting strategies accordingly can provide a safeguard against market unpredictability. Be sure to keep up with the latest analyses at ForexLive.com for continuous updates and insights.

This article was written by Itai Levitan at www.forexlive.com.

The Bank of Canada Governor holds a press conference and takes questions from reporters along with Senior Deputy Governor Carolyn Rogers.

Highlights:

• We are navigating carefully
• The Canadian economy started the year in a good place
• In March, we said we would be less-forward looking
• Much has happened since March but the situation is no less clear
• We’re going to do as much as we can to support to the Canadian economy while maintaining our focus on price stability
• My comment about ‘acting decisively’ isn’t a code word
• Says he’s heading to IMF meetings soon and expects some clarity there

He repeated the ‘navigating carefully’ line after referring to his notes. That’s clearly a talking point but it’s not clear what he’s saying. I think it implied that rate cuts were still in play but they want to try and get some clarity on tariffs. I think it’s a mistake because the path of growth is undoubtedly down and they could quickly fall behind the curve.

Rogers:

• We’re hoping for some clarity

This article was written by Adam Button at www.forexlive.com.

The Bank of Canada kept rates unchanged. That took the price below the 100 hour moving average of 1.39144, but the low price at 1.3882 is still above the low price from yesterday’s trade near 1.3850 and above the low price from Monday’s trade 1.38278. The Monday low was the lowest level going back to November 2024 when the price bottomed at 1.38171. All of those levels are now targets on more selling momentum.

On the topside, a move back above the 100-hour MA (and staying above) would give the buyers some hope.

This article was written by Greg Michalowski at www.forexlive.com.

• Prior was +2553K
• Gasoline -1958K vs -1595K exp
• Distillates -1851K vs -1180K exp
• Refinery utilization -0.4% vs +0.4% expected

Private inventories from the API late yesterday:

• Crude +2400K
• Gasoline -3010K
• Distillates -3160K

This is a decent report with some solid product draws. We’re nearing the end of the inventory building season and the start of driving season. With all the international tensions, global consumers could be taking more road trips this summer.

This article was written by Adam Button at www.forexlive.com.