Summary:

  • CAD traders await BoC decision

  • European equities benefit from the optimism seen in Asia and US

  • Major cryptocurrencies trade higher

European stocks trade higher on Wednesday with the German ones lagging behind its peers. Investors await Bank of Canada decision as well as House of Lords votings on the Brexit draft concerning UK future in the EU customs union. Commodities trade broadly higher with nickel and aluminium experiencing the most impressive gains. Moving to the FX market, GBP is the worst performing currency from the G10 following an inflation miss. On the other hand, EUR is the strongest one along with the USD.

Despite disappointingly slow inflation in the UK economy registered in March market participants do not seem to be concerned about a rate hike in the following month. Nevertheless, the pound is feeling the pain anyway making a retreat from above 1.42 in response to the data.

Over the course of the past months there were quite different views regarding virtual currencies presented by the most prominent institutions all around the globe. This time International Monetary Fund’s chief Christine Lagarde weighed in writing two interesting posts on the official IMF website to cryptocurrencies.

German carmakers have found themselves under pressure as the industry has accounted the weakest quarter in terms of sales in 5 years. In March sales of the European carmakers slid 5.2% to 1.84 million units while in the whole Q1 2018 the sales advanced by 0.6% marking the slowest gain since Q2 2013.

US stock indices managed to close yesterday’s trading with decent gains fuelled by performance of several stocks with Netflix leading the rally. The company added as much as 9% climbing its highest level on the history after the announcement which smashed analysts’ quarterly subscriber estimates.

Investors’ attention may turn to the GBP the first one of six meetings concerning Brexit theme will be held today in the House of Lords. Today UK’s future in the EU customs union will be decided thus the outcome of the ballot may spur additional volatility on the GBP.