Dollar edges up

Asian shares crept ahead on Wednesday after Wall Street took heart from upbeat corporate earnings, though nagging concerns about trade barriers and the global growth outlook kept currencies and bonds subdued. The dollar edged up on Wednesday, as firm U.S. economic data supported the greenback against the yen and headline risks around U.S.-China trade relations and tensions in the Middle East appeared to take a backseat. The greenback found support from economic indicators as the market focused on fundamentals as perceived political risks receded, with Western strikes on Syria not expected to escalate and a lull in major U.S.-China trade-related headlines.

Caution over U.S.-China trade tensions continued to linger in the background, confining currencies to narrow ranges.

In Currencies EURUSD rose to a three-week high of 1.2414 on Wednesday but slipped to 1.2336 on a ZEW research institute survey showing German investor morale reached its lowest since November. GBPUSD traded flat at 1.4299, nudged away from a post-Brexit referendum 22-month high of 1.4377 scaled by weaker-than-expected British wage data. The markets were still pricing in a more than an even chance of the Bank of England hiking interest rates in May, which had helped sterling advance aggressively this month.

In Commodities gold was a fraction easier at 1,344.11 an ounce. Oil prices firmed with Brent crude futures up 32 cents to 71.90 a barrel, while U.S. crude rose 33 cents to 66.85 a barrel.

Τhe UK Consumer Price Index, the Bank of Canada Interest Rate Decision and Crude Oil Inventories are the most important economic events for today, which can move the forex market. There is also the release of the Beige Book by the Federal Reserve which may influence the US Dollar. Moderate to high volatility should be expected for the Euro, the British Pound, the Canadian Dollar and the US Dollar.