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·         GBP/USD tumbles below 1.37 on downbeat mood, weak UK CPI

GBP/USD has dropped below 1.37 as the US dollar gains ground across the board. The pound is under pressure as UK CPI missed estimates by 0.4% and amid concerns that the UK's vaccination campaign could slow down.

Pound/dollar has broken below the double-bottom at 1.3775 and uptrend support. It also suffers from downside momentum on the four-hour chart. However, the Relative Strength Index has dropped below 30 – entering oversold conditions and implying a bounce.

Cable is battling the 1.3680 level which provided support in February. Further down, the next levels to watch are 1.3610 and then 1.3565, both working as cushions around the same time.

Some resistance is at 1.3745, a temporary cap from February, and then the strong 1.3775 level mentioned earlier. Further above, 1.3820 is the level to watch.

 

GBP/USD to extend the decline to the 1.3600 level – OCBC

The GBP/USD pair has breached key downside support and may extend the fall to the 1.3610/00 neighborhood, economists at OCBC bank report.

 

Key quotes

“The GBP/USD lost the 1.3800 support quickly overnight, and the initial attempt to retake it failed. This perhaps points to further downside, and the next target may be the 1.3600/10 area.”

“Pace of vaccination in the UK is likely to slow, and this should lead to a partial reversal in GBP gains since 4Q 2020.”

 

·         EUR/USD struggles near multi-month lows on broad dollar strength

EUR/USD is trading below 1.1850, near levels last seen in November 2020. The dollar benefits from upbeat US prospects while the eurozone is struggling with a sluggish vaccination campaign. Eurozone PMIs are awaited.

 

·         Tesla starts accepting Bitcoin as payment and BTC price regains track to new all-time highs

Bitcoin is back on the spotlight after Tesla's CEO Elon Musk announced that the company has started accepting BTC as a form of paymnet. The flagship cryptocurrency quickly rose over $1,000 on Musk's remarks and seems primed to regain track to new all-time highs.

Tesla brings Bitcoin a step closer to mainstream adoption

Tesla has started accepting Bitcoin as a form of payment, according to its CEO Elon Musk. All of the firm's electric vehicles, including the world's best-selling all-electric car Model 3, can now be purchased with BTC.

 

The bold move by Tesla could influence Bitcoin's mainstream adoption, especially when considering that the company  will allow BTC payment capabilities outside on the US later this year.

Musk also confirmed his intent to not convert into fiat currency the BTC tokens received for every Tesla vehicle sold. Instead, the frim will retain the coins that using an "internal and open source software [that] operates Bitcoin nodes directly.

 

·         AstraZeneca to publish full U.S. trial results after rare rebuke over 'outdated' data

AstraZeneca will publish up-to-date results from its major U.S. COVID-19 vaccine trial within 48 hours after health officials publicly criticized the drugmaker for using “outdated information” to show how well the immunization worked.

 

·         EU to extend vaccine export curbs to cover Britain, backloading: source

The European Commission on Wednesday will extend EU powers to potentially block COVID-19 vaccine exports to Britain and other areas with much higher vaccination rates, and to cover instances of companies backloading contracted supplies, EU officials said.

·         Brazil could approve Russian coronavirus vaccine in days, says pharmaceutical firm

·         Hong Kong halts Pfizer/BioNTech COVID-19 vaccines, investigates packaging

Hong Kong authorities halted on Wednesday the use of a COVID-19 vaccine developed by Pfizer and BioNTech as a precaution due to defective packaging, which is likely to slow the Chinese territory’s already sluggish inoculation drive.

·         IMF chief aims for formal proposal for $650 billion reserve expansion by June

·         Powell Says Stimulus Package Isn’t Likely to Fuel Unwelcome Inflation

Fed chairman testifies along with Treasury Secretary Yellen on government’s pandemic relief efforts

·         UK inflation rate unexpectedly drops in February

British consumer price inflation unexpectedly fell to 0.4% in February from 0.7% in January, reflecting unusual patterns of clothing discounts, official figures showed on Wednesday.

Core consumer price inflation - which excludes more volatile food and energy prices - dropped to 0.9% from 1.4%.

 

·         BOJ debated future scope to assist green, digital investment - January minutes

The Bank of Japan must seek ways to encourage corporate investment to promote digitalisation and a carbon-free society, one of its board members said at a January meeting, suggesting that the idea could emerge as a future policy option.

·         Japan's factory activity picks up in March on growing output, orders - flash PMI

An expansion of Japan’s factory activity gathered pace in March, a private sector survey showed on Wednesday, helped by the prospect of a global economic recovery as an increasing number of countries roll out COVID-19 vaccines.

The au Jibun Bank Flash Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 52.0 in March from a final 51.4 in February.

 

·         BOK chief sees stronger recovery in 2021, tempers tightening expectations

 

·         BofA says Covid crisis will delay India overtaking Japan as third-largest economy by 3 years

 

·         Oil steadies, recovery stunded by European lockdowns, US stockbuild

Oil prices steadiedr on Wednesday, following the previous day’s slump, but the recovery was stunted by fears of a slow recovery in demand due to new pandemic lockdowns in Europe and a build in U.S. crude stocks.

Brent crude futures rose 8 cents, or 0.1%, to $60.87 a barrel by 0454 GMT, after tumbling 5.9% and hitting a low of $60.50 the previous day.

West Texas Intermediate (WTI) crude futures climbed 8 cents, or 0.1%, to $57.84 a barrel, having lost 6.2% and touched a low of $57.32 on Tuesday.

Both benchmarks touched their lowest levels since early February on Tuesday and have now fallen nearly 15% from their recent highs earlier this month.

 

·         Oil: More downside on the horizon, WTI to nosedive towards $52 – TDS

WTI crude had another dismal day, plunging over 6% on Tuesday. Rising virus cases in Europe are proving to be the catalyst in oil’s selloff. Bart Melek, Head of Commodity Strategy at TD Securities, notes that WTI has room to sink to the $52 level.

 

Reference: CNBC, Reuters, FXStreet