Market Roundup
• Canada Jan CPI (MoM) 0.0%, 0.4% forecast, -0.3% previous
• Canada Jan Trimmed CPI (YoY) 3.4%,3.6% forecast,3.7% previous
• Canada Jan Median CPI (YoY) 3.3%,3.6% forecast, 3.6% previous
• Canada Jan Core CPI (YoY) 2.4%,2.6% previous
• Canada Jan CPI (YoY) 2.9%,3.3% forecast, 3.4% previous
• Canada Jan Core CPI (MoM) 0.1%,-0.5% previous
• Canada Jan Common CPI (YoY) 3.4%,3.8% forecast, 3.9% previous
• US Jan Leading Index (MoM) -0.4%, -0.3% forecast,-0.1% previous
• US 3-Month Bill Auction 5.230%, 5.230% previous
• US 6-Month Bill Auction 5.100%, 5.065% previous
Looking Ahead Economic Data (GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Tuesday as dollar dipped ahead of Fed's January policy meeting which is due on Wednesday. Investors brushed off higher than expected U.S. consumer and producer price inflation data for January released last week as likely being impacted by seasonal adjustments and not indicating renewed price pressures. The main data release for Tuesday on a fairly quiet calendar was ECB numbers that showed the annual growth in negotiated wages across the euro area slowed to 4.5% in the final quarter of 2023, down slightly from a record high of 4.7% in the third quarter.The ECB has singled out wages as the single biggest risk to its 1-1/2 year crusade against inflation, in which it raised key interest rates to record highs. The dollar index was last down 0.21% at 104.08, and earlier reached 103.79, the lowest since Feb. 2. The euro rose 0.25% to $1.0804 and got as high as $1.0839, the highest since Feb. 2. Immediate resistance can be seen at 1.0805(Daily high), an upside break can trigger rise towards 1.0848 (23.6%fib).On the downside, immediate support is seen at 1.0771(38.2%fib), a break below could take the pair towards 1.0705 (50%fib).
GBP/USD: The pound gained on Tuesday as investors awaited further impetus from survey data on Thursday. The latest purchasing managers' index data, which relies on surveys, is set to be released on Thursday. It will offer insights into the current state of the UK economy for the month of February. Bank of England Deputy Governor Ben Broadbent said interest rate cuts during 2024 were possible but the timing was dependent on an unclear outlook for inflation.The BoE's most recent forecast for inflation to fall certainly doesn't rule out a policy easing at some point this year, Broadbent said in an annual report to parliament's Treasury Committee published on Tuesday. The pair was last up 0.20% at $1.2618 . Immediate resistance can be seen at 1.2631(Feb 19th high), an upside break can trigger rise towards 1.2659 (23.6%fib).On the downside, immediate support is seen at 1.2567(38.2%fib), a break below could take the pair towards 1.2497(50%fib).
USD/CAD: The loonie weakened against its US counterpart on Tuesday as headwinds from receding early rate cut expectations globally outweighed the boost from lower-than-expected domestic inflation data. Canada's annual inflation rate cooled more than expected to 2.9% in January while core inflation measures dropped to their lowest levels in more than two years, data showed on Tuesday. U.S. March crude futures rose 1 cents to $79.2 a barrel on Tuesday. The loonie was trading 0.2% lower at C$1.3513 to the greenback, after trading in a range of 1.3473 to 1.3524. Immediate resistance can be seen at 1.3541 (38.2%fib), an upside break can trigger rise towards 1.3582 (Higher BB).On the downside, immediate support is seen at 1.3470 (50%fib), a break below could take the pair towards 1.3401 (61.8%fib).
USD/JPY: The dollar was little changed against yen on Tuesday as investors grew less certain Japan's era of ultra-low rates will end any time soon given the country is in recession. Japanese finance minister Shunichi Suzuki said on Tuesday authorities were closely watching FX moves with a high sense of urgency, a phrase he has used previously, and stated the yen exchange rate was set by a number of factors.The yen has lost 7% in value in 2024 alone, having weakened past the 150-level against the dollar on Feb. 13. In the past, traders have viewed 150 as a line in the sand for the Bank of Japan and the Ministry of Finance that could trigger intervention, such as was the case in late 2022. Strong resistance can be seen at 150.78 (Higher BB) an upside break can trigger rise towards 151.56(23.6%fib).On the downside, immediate support is seen 149.79(38.2%fib), a break below could take the pair towards 149.00(Psychological level )
Equities Recap
Europe's benchmark stock index snapped a four-day winning streak on Tuesday, weighed down by basic resources and energy stocks, while French industrial gases firm Air Liquide jumped to an all-time high after hiking its 2025 margin target.
UK's benchmark FTSE 100 closed down by 0.12 percent, Germany's Dax ended down by 0.14 percent, France’s CAC finished the day up by 0.26 percent.
U.S. stocks ended lower on Tuesday, with the Nasdaq showing the largest declines as chipmaker Nvidia stumbled ahead of its highly awaited earnings report, while gains in Walmart kept losses on the Dow Industrials in check.
Dow Jones closed down by 0.17% percent, S&P 500 closed down by 0.60 % percent, Nasdaq settled down by 0.92% percent.
Commodities Recap
The price of gold advanced during trading on Tuesday, closing higher for the third consecutive session amid a decrease in the value of the U.S. dollar.
Gold for April delivery climbed $15.70 to $2,039.80 an ounce after rising $9.20 to $2,024.10 an ounce last Friday.
Oil prices settled lower on Tuesday, with worries about global demand offsetting price support from the Israel-Hamas conflict.
Brent futures settled down $1.22, or 1.5%, to $82.34 a barrel. The six-month spread for Brent on Tuesday was at its highest since October, a sign of a tighter market.
U.S. West Texas Intermediate (WTI) crude for March delivery which expires Tuesday, settled down $1.01, or 1.3%, to $78.18 a barrel.
