Market Roundup
• Canada Reserve Assets Total (Jan) 117.9B, 121.6B previous
•US Exports (Dec) 266.50B, 273.40B previous
•US Imports (Dec) 364.90B, 351.60B previous
•US Trade Balance (Dec) -98.40B, -96.50B forecast, -78.90B previous
•Canada Exports (Dec) 69.46B, 66.20B previous
•Canada Imports (Dec) 68.76B, 67.18B previous
•Canada Trade Balance (Dec) 0.71B, 1.00B forecast, -0.99B previous
•US S&P Global Composite PMI (Jan) 52.7, 52.4 forecast, 55.4 previous
•US S&P Global Services PMI (Jan) 52.9, 52.8 forecast, 56.8 previous
•US ISM Non-Manufacturing Business Activity (Jan) 54.5, 58.0 previous
•US ISM Non-Manufacturing Employment (Jan) 52.3, 51.3 previous
•US ISM Non-Manufacturing New Orders (Jan) 51.3, 54.4 previous
•US ISM Non-Manufacturing PMI (Jan) 52.8, 54.2 forecast, 54.0 previous
•US ISM Non-Manufacturing Prices (Jan) 60.4, 64.4 previous
•US Crude Oil Inventories 8.664M, 2.400M forecast, 3.463M previous
Looking Ahead Economic Data(GMT)
• 23:30 Japan Overtime Pay (YoY) (Dec) 1.60% previous
•23:50 Japan Foreign Bonds Buying 178.0B previous
•23:50 Japan Foreign Investments in Japanese Stocks 753.0B previous
•00:30 Australia Exports (MoM) (Dec) 4.8% previous
•00:30 Australia Imports (MoM) (Dec) 1.7% previous
•00:30 Australia Trade Balance (Dec) 6.560B 7.079B previous
Looking Ahead Events And Other Releases(GMT)
• 00:30 Fed Governor Jefferson Speaks
Currency Summaries
EUR/USD: The euro rose on Wednesday as dollar extended its losses after data showed that U.S. services sector activity unexpectedly slowed in January amid cooling demand.The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing purchasing managers index (PMI) slipped to 52.8 last month from 54.0 in December. Economists polled had forecast the services PMI edging up to 54.3. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.41% to 107.61, with the euro up 0.26% at $1.0404. Immediate resistance can be seen at 1.0416(50 SMA), an upside break can trigger rise towards 1.0439(61.8%fib).On the downside, immediate support is seen at 1.0369(50%fib), a break below could take the pair towards 1.9293 (38.2%fib).
GBP/USD: Sterling hit a one-month high on Wednesday as the dollar dipped, as investors continue to grapple with uncertainties arising from tariff skirmishes. Investors turned their focus to the Bank of England's rate decision this week. Traders and investors expect the Bank of England to cut interest rates by 25 basis points (bps) to 4.5% on Thursday, reflecting a slowdown in British growth and a drop in previously stubborn services inflation. The Bank will also release new growth and inflation forecasts. Sterling climbed to $1.2532 in morning trade in London, its highest since Jan. 7, and was last up 0.20% at $1.2502.Immediate resistance can be seen at 1.2548(50%fib), an upside break can trigger rise towards 1.2669(61.8%fib).On the downside, immediate support is seen at 1.2469(Daily low), a break below could take the pair towards 1.2427(38.2%fib)
USD/CAD: The Canadian dollar held steady nears a two-week high against the U.S. dollar on Wednesday, boosted by Canada's trade surplus and a reprieve from U.S. tariffs. Canada recorded its first trade surplus in 10 months in December, as exports grew faster than imports, driven by U.S. businesses stocking up before potential tariffs. The price of oil, a key Canadian export, dropped 2.3% to $71.03 per barrel after a significant increase in U.S. crude and gasoline stockpiles pointed to weaker demand. The loonie was flat at 1.4320 per U.S. dollar after reaching its highest intraday level since January 20 at 1.4266. Immediate resistance can be seen at 1.4428(50% fib), an upside break can trigger rise towards 1.4512(Feb 4th high).On the downside, immediate support is seen at 1.4273(38.2% fib), a break below could take the pair towards 1.4218 (Lower BB).
USD/JPY: The U.S. dollar slipped lower on Wednesday as the yen gained strength, supported by positive wage data from Japan. December's inflation-adjusted real wages rose 0.6% year-on-year, driven by a winter bonus boost, according to preliminary data. This marked the second consecutive increase in real wages, with November's data also revised higher to show a 0.5% rise, up from a previous 0.3% decline. The data fueled expectations for further tightening by the Bank of Japan. The U.S. currency was last 1.15% lower at 152.63 its lowest since December. Immediate resistance can be seen at 153.74 (38.2%fib) an upside break can trigger rise towards 154.50(50%fib). On the downside, immediate support is seen at 152.40(23.6%fib) a break below could take the pair towards 151.96 (Lower BB).
Equities Recap
European shares closed higher on Wednesday, as gains in healthcare stocks like GSK and Novo Nordisk, following strong earnings, outweighed losses in carmaker shares.
UK's benchmark FTSE 100 closed up by 0.61 percent, Germany's Dax ended up by 0.22 percent, France’s CAC finished the day down by 0.19 percent.
U.S. stocks closed higher on Wednesday after a volatile session, as disappointing earnings and mixed economic data were offset by easing concerns over a global trade war.
Dow Jones closed up by 0.71% percent, S&P 500 closed up by 0.39% percent, Nasdaq settled up by 0.19% percent.
Commodities Recap
Gold prices extended their record rally on Wednesday, driven by investor demand for safe-haven assets amid growing fears of a U.S.-China trade war and its potential economic impact.
Spot gold was up 0.8% at $2,865.61 per ounce by 01:59 p.m. ET (1859 GMT), after hitting a record high of $2,882.16 earlier in the session.
U.S. gold futures settled 0.6% higher at $2,893 per ounce.
Oil prices dropped over 2% on Wednesday, as a significant rise in U.S. crude and gasoline stockpiles indicated weaker demand, while concerns over a potential China-U.S. trade war raised fears of slower economic growth.
Brent crude futures settled down $1.59, or 2.09%, to $74.61 a barrel. U.S. West Texas Intermediate crude was down $1.67, or 2.3%, to $71.03.
