Market Roundup
• French Jan Industrial Production (MoM) -1.1%, -0.1% forecast,1.1% previous
• Spanish Feb Services PMI 54.7, 53.4 forecast,52.1 previous
•Italian Feb Services PMI 52.2 ,52.2 forecast, 51.2 previous
•French Feb Services PMI 48.4, 48.0 forecast,45.4 previous
•German Feb Services PMI 48.3 ,48.2 forecast, 47.7 previous
•EU Feb Services PMI 50.2, 50.0 forecast, 48.4 previous
•EU Feb S&P Global Composite PMI 49.2,48.9 forecast,47.9 previous
•UK Feb Services PMI 53.8,54.3 forecast,54.3 previous
•UK Feb Composite PMI 53.0,53.3 forecast,52.9 previous
•EU Jan PPI (MoM) -0.9%,-0.1% forecast,-0.8% previous
Looking Ahead Economic Data(GMT)
•13:30 Canada Feb Reserve Assets Total 116.3B previous
•13:55 US Redbook (YoY) 2.7% previous
•14:45 US Feb S&P Global Composite PMI 51.4 forecast,52.0 previous
•14:45 US Feb Services PMI 51.3 forecast,52.5 previous
•15:00 GlobalDairyTrade Price Index 0.5% previous
•15:00 US Feb ISM Non-Manufacturing Business Activity 55.8 previous
•15:00 US Feb ISM Non-Manufacturing New Orders 55.0 previous
•15:00 US Feb ISM Non-Manufacturing Prices 64.0 previous
•15:00 US Feb ISM Non-Manufacturing Employment 50.5 previous
•15:00 US Feb ISM Non-Manufacturing PMI 53.0 forecast,53.4 previous
•15:00 US Jan Factory Orders (MoM) -3.1% forecast,0.2% previous
•15:00 US Jan Durables Excluding Defense (MoM) -7.3% previous
Looking Ahead
•17:00 US Fed Vice Chair for Supervision Barr Speaks
• 20:30 US Fed Vice Chair for Supervision Barr Speaks
Currency Forecast
EUR/USD: The euro dipped against dollar on Tuesday as investors looked towards the European Central Bank's rate decision. The ECB meets to discuss policy on Thursday but is widely expected to leave interest rates at a record 4%. Investors will be on the lookout for any hints about when rates might start to fall and will scrutinise updated economic projections.Survey data on Tuesday showed that business activity in the euro zone showed signs of recovery last month. Immediate resistance can be seen at 1.0868(23.6%fib), an upside break can trigger rise towards 1.0883(Higher BB).On the downside, immediate support is seen at 1.0793(38.2%fib), a break below could take the pair towards 1.0729 (50%fib).
GBP/USD: The British pound dipped against the dollar on Tuesday as trader were cautious ahead of UK budget. British finance minister Jeremy Hunt is expected to announce measures to boost the economy and Prime Minister Rishi Sunak's hopes of winning an election later this year in a budget statement on Wednesday.Tuesday's survey showed order books for services firms grew at the fastest pace since last May, boosted by optimism among clients about the prospect of the Bank of England cutting interest rates. Sterling eased slightly to $1.2681 .Immediate resistance can be seen at 1.2685(Feb 29th high), an upside break can trigger rise towards 1.2709(23.6%fib).On the downside, immediate support is seen at 1.2640(38.2%fib), a break below could take the pair towards 1.2629(50%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as focus shifted to Powell's two-day congressional testimony this Wednesday and Thursday. Market participants appeared to be showing caution ahead of Powell's two-day congressional testimony on Wednesday and Thursday.Powell's testimony and the jobs data will be scrutinized for any clarification on the timing and extent of the Fed's expected cuts to its key policy interest rate this year. The dollar index , which measures the currency against six other majors, edged very slightly higher to 103.89.Immediate resistance can be seen at 0.8887(23.6%fib), an upside break can trigger rise towards 0.8915(Higher BB).On the downside, immediate support is seen at 0.8802(Daily low), a break below could take the pair towards 0.773(38.2%fib).
USD/JPY: The dollar strengthened against yen on Tuesday as investors awaited Chair Jerome Powell's speech and a US jobs data for further insights into rate-cut cycle. Market participants appeared to be showing caution ahead of Powell's two-day congressional testimony on Wednesday and Thursday, the European Central Bank's policy decision and the Labor Department's crucial February jobs report to be released early on Friday. Traders see more than 50% chance that the Fed will start cutting rates by June, according to the CME FedWatch tool.The dollar was unchanged at 150.42 yen. Strong resistance can be seen at 150.86(23.6%fib) an upside break can trigger rise towards 151.86(Higher BB).On the downside, immediate support is seen 149.844(Daily low), a break below could take the pair towards 148.84(38.2%fib )
Equities Recap
European shares moved lower on Tuesday as pledges by China to transform its economy amid stuttering growth failed to impress investors, while markets grew cautious ahead of a string of euro zone and U.S. economic data.
At (GMT 13:26 ),UK's benchmark FTSE 100 was last trading down at 0.02 percent, Germany's Dax was down by 0.00 percent, France’s CAC finished was down by 0.08 percent.
Commodities Recap
Gold prices headed towards record highs on Tuesday, driven by mounting hopes of the Federal Reserve's first interest rate cut in June as investors awaited Chair Jerome Powell's speech and a key jobs data for further guidance.
Spot gold rose 0.4% to $2,122.49 per ounce as of 1219 GMT, and was just $13 away from achieving a record high, after hitting its current peak of $2,135.40 on Dec. 4.U.S. gold futures gained 0.3% to $2,132.00.
