Market Roundup
• US CPI Index, n.s.a. (Feb): 326.79, 326.79 forecast, 325.25 previous
•US Core CPI Index (Feb): 333.51, 332.79 previous
•US CPI, n.s.a (MoM) (Feb): 0.47%, 0.37% previous
•US CPI Index, s.a (Feb): 327.46, 326.59 previous
•US Real Earnings (MoM) (Feb): 0.1%, 0.5% previous
•US Crude Oil Inventories: 3.824M, 2.800M forecast, 3.475M previous
•US Cushing Crude Oil Inventories: 0.117M, 1.564M previous
•US Gasoline Inventories: -3.654M, -2.600M forecast, -1.704M previous
•US EIA Weekly Distillates Stocks: -1.349M, -0.700M forecast, 0.429M previous
•US Crude Oil Imports: 0.661M, -0.019M previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Foreign Investments in Japanese Stocks 973.9B previous
•23:50 Japan Foreign Bonds Buying -673.1B previous
•00:00Australia MI Inflation Expectations (Mar) 5.0% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro edged lower against the dollar on Wednesday as investors assessed the economic impact of the Middle East conflict, now in its twelfth day, while digesting the latest U.S. inflation data.Data from the U.S. Bureau of Labor Statistics showed the Consumer Price Index rose 0.3% in February after a 0.2% increase in January. Annual inflation held steady at 2.4%, matching the previous month. Consumer prices rose moderately as rents continued to climb, while households paid more for gasoline and groceries, with further cost pressures expected due to the escalating Middle East conflict.Meanwhile, Christine Lagarde, president of the European Central Bank, said the ECB would do everything necessary to keep inflation under control and avoid a repeat of the 2022 energy price shock.The euro fell around 0.34% to $1.157. Immediate resistance can be seen at 1.1670(March 10th high), an upside break can trigger rise towards 1.1739(SMA 20).On the downside, immediate support is seen at 1.1509(March 9th low), a break below could take the pair towards 1.1459(Lower BB).
GBP/USD: The British pound edged lower on Wednesday as investors assessed the implications of the Middle East conflict, now in its twelfth day. Iran’s military command warned oil could surge to $200 a barrel as hostilities persist, contrasting with earlier hopes for de-escalation after Donald Trump said the war was nearly over, which had sparked a global relief rally.Meanwhile, the International Energy Agency agreed to release 400 million barrels of oil, the largest release in its history, in an effort to curb soaring crude prices, though oil still settled more than 4% higher on the day.Investors remain cautious as the conflict threatens to disrupt global energy trade and trigger another price shock, a risk world leaders are trying to contain. Immediate resistance can be seen at 1.3424(38.2%fib), an upside break can trigger rise towards 1.3473(SMA 20).On the downside, immediate support is seen at 1.3243(38.2%fib), a break below could take the pair towards 1.3219(Lower BB).
USD/CAD: The Canadian dollar weakened on Wednesday as stronger greenback offset higher oil price, while investors assessed the implications of the Middle East conflict. The U.S. dollar rose against a basket of major currencies as investors remained on edge over further escalation in the Middle East conflict that has driven up energy prices worldwide.Investors have moved in recent days to price in an interest rate hike this year after the spike in oil prices raised concerns globally about the outlook for inflation.Looking ahead, Canadian trade data for January is due on Thursday and the February employment report is set for the end of the week, which could guide expectations for next week's Bank of Canada interest rate decision.Investors remain on edge as the Middle East conflict threatens to freeze global energy trade and ignite a price shock.Immediate resistance can be seen at 1.3643(38.2%fib), an upside break can trigger rise towards 1.37199(5th March high).On the downside, immediate support is seen at 1.3523(Lower BB), a break below could take the pair towards 1.3486(23.6%fib)
USD/JPY: The US dollar edged higher on Wednesday after data showed U.S. inflation picked up as expected while oil prices resumed their climb as the U.S.-Israeli war on Iran dragged on.Data from the Labor Department showed the consumer price index rose 0.3% in February, in line with forecasts and above January's 0.2% increase. The CPI rose 2.4% in the year to February while the core rate, which excludes food and energy prices, rose 2.5%, bothin line with forecasts. Investors remain on edge as the Middle East conflict threatens to freeze global energy trade and ignite a price shock - a risk that world leaders are scrambling to address. Immediate resistance can be seen at 159.29(Daily high) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.09(38.2%fib) a break below could take the pair towards 156.94 (50%fib).
Equities Recap
European shares declined on Wednesday as investors weighed the economic fallout of the Middle East conflict as it entered its twelfth day and digested a U.S. inflation reading.
UK's benchmark FTSE 100 closed down by 0.56 percent, Germany's Dax ended down by 1.37 percent, France’s CAC finished the day down by 0.19 percent.
Wall Street ended mixed Wednesday, as investors shrugged off February CPI data and focused on rising tensions from the U.S.–Israeli conflict with Iran.
Dow Jones closed down by 0.61 percent, S&P 500 closed down by 0.08 percent, Nasdaq settled up by 0.08 percent.
Commodities Recap
Gold prices edged lower Wednesday, pressured by a stronger U.S. dollar and rising inflation concerns that supported expectations of higher interest rates.
Spot gold was down 0.5% at $5,165.93 per ounce, as of 12:00 p.m. ET (1600 GMT). U.S. gold futures for April delivery fell 1.3% to $5,174.40.
Oil prices settled up nearly 5% on Wednesday as fresh attacks on ships in the Strait of Hormuz worsened supply disruption fears, and analysts said the International Energy Agency's proposal for a record release of oil reserves is inadequate to ease those worries.
Brent futures rose $4.18, or 4.8%, to settle at $91.98 a barrel, while U.S. West Texas Intermediate ended the session up $3.80, or 4.6%, at $87.25 a barrel.
