Market Roundup
• US Building Permits (Dec) 1.448M, 1.400M forecast, 1.388M previous
• US Housing Starts (Dec): 1.404M, above 1.310M forecast and 1.272M previous
• US Durable Goods Orders (MoM) (Dec): -1.4%, -1.8% forecast, 5.4% previous
• US Core Durable Goods Orders (MoM) (Dec): 0.9%, 0.3% forecast, 0.4% previous
• US Building Permits (MoM) (Dec): 4.3%, -0.2% forecast, -1.6% previous
• US Durables Excluding Defense (MoM) (Dec): -2.5%, previous 6.6%
• US Goods Orders Non-Defense Ex Air (MoM) (Dec): 0.6%, 0.5% forecast, 0.8% previous
• US Durables Excluding Transport (MoM) (Dec): 0.9%, 0.3% forecast, 0.4% previous
• US Redbook (YoY): 7.2%, previous 6.5%
• US Industrial Production (YoY) (Jan): 2.28%, previous 1.30%
• US Industrial Production (MoM) (Jan): 0.7%, 0.4% forecast, 0.2% previous
• US Manufacturing Production (MoM) (Jan): 0.6%, 0.4% forecast, 0.0% previous
• US Capacity Utilization Rate (Jan): 76.2%, 76.6% forecast, 75.7% previous
• US Atlanta Fed GDPNow (Q4): 3.6%, 3.7% forecast, 3.7% 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 slipped on Wednesday following reports that Christine Lagarde may leave her post at the European Central Bank before her term ends in October 2027. According to the Financial Times, Lagarde is planning an early departure, though the ECB emphasized that no formal decision has been made.Lagarde, who assumed office in 2019, guided the central bank through aggressive policy tightening in 2022 and 2023 to rein in soaring inflation. With inflation now close to the ECB’s target and interest rates expected to remain on hold through 2026, her potential exit would come at a relatively stable period for eurozone monetary policy.Attention has turned to possible successors, with former governors of the Spain and Netherlands central banks seen as leading contenders. Market observers expect a broader political agreement could result in both securing prominent roles within the EU’s financial institutions. Immediate resistance can be seen at 1.1856(50%fib), an upside break can trigger rise towards 1.1927(Feb 11th high).On the downside, immediate support is seen at 1.1772(61.8%fib).), a break below could take the pair towards 1.1733(Lower BB).
GBP/USD: The pound slipped lower on Wednesday as easing British inflation strengthened the case for a near-term rate cut from the Bank of England, even as underlying price pressures remained strong. Annual consumer prices rose 3% last month, slowing from 3.4% in December, according to official figures. Most economists polled by Reuters had expected headline inflation to drop to 3% in January.But inflation for services - closely watched as a gauge of domestic price pressures - slowed only marginally to 4.4% from 4.5% in December, above the Reuters poll expectations for a fall to 4.3%. Investors are assigning a roughly 85% chance of a 25-basis-point rate cut from the BoE next month, up slightly from Tuesday. Money market traders are fully pricing in two quarter-point rate cuts by the end of the year. Immediate resistance can be seen at 1.3605(50%fib), an upside break can trigger rise towards 1.3645(SMA 20).On the downside, immediate support is seen at 1.3493 (61.8%fib), a break below could take the pair towards 1.3464(Lower BB).
USD/CAD: The Canadian dollar weakened on Wednesday as greenback strengthened further following a batch of economic data and the minutes from the Federal Reserve's January meeting.The U.S. Dollar strengthened after a series of stronger-than-expected U.S. economic data, likely fueled by an AI investment boom.The United States Department of Commerce reported that non-defense capital goods orders excluding aircraft, a key gauge of business spending, rose 0.6%, above economists’ 0.4% forecast.The Federal Reserve reported that U.S. manufacturing output rose 0.6% last month the largest increase since February 2025 exceeding the 0.4% estimate after being flat in December.The U.S. Dollar was set for its third consecutive gain, marking its largest daily percentage increase since January 30.. Immediate resistance can be seen at 1.3732 (50%fib), an upside break can trigger rise towards 1.3761(SMA 20).On the downside, immediate support is seen at 1.3624(38.2%fib), a break below could take the pair towards 1.3515(Lower BB).
USD/JPY: The U.S. dollar strengthened on Wednesday after minutes from the Federal Reserve showed policymakers did not seem to be in a rush to cut interest rates and that several were open to hikes if inflation proved sticky. The Fed minutes showed policymakers divided over where to take U.S. rates and suggest that the next chairman, due to start in May, will have a hard time pushing through rate cuts.Several policymakers are expecting productivity gains to dampen inflation, the minutes said, but "most participants" cautioned progress may be slow and uneven. Several even indicated hikes are possible if inflation stays above target. Markets are looking ahead to global purchasing managers' index figures and U.S. gross domestic product data, due on Friday. Immediate resistance can be seen at 156.11(38.2%fib) an upside break can trigger rise towards 157.00(Psychological level) .On the downside, immediate support is seen at 153.26 (50%fib) a break below could take the pair towards 151.61(Lower BB).
Equities Recap
European stocks rose as positive earnings reports boosted sentiment, with gains supported by strong results from BAE Systems Plc and Puig Brands SA.
UK's benchmark FTSE 100 closed up by 1.23 percent, Germany's Dax ended up by 1.22 percent, France’s CAC finished the day up by 0.81 percent.
Wall Street closed higher on Wednesday, driven by strong performances from tech giants including Nvidia and Amazon, as investor jitters over artificial intelligence eased.
Dow Jones closed up by 0.26 % percent, S&P 500 closed up by 0.56 % percent, Nasdaq settled up by 0.78% percent.
Commodities Recap
Gold gained over 2% on Wednesday, supported by lingering geopolitical risks, despite minutes from the Federal Reserve January meeting showing officials split on whether interest rates should rise further or stay on hold.
Oil prices jumped over 4% on Wednesday, boosted by concerns over potential supply disruptions amid U.S.-Iran tensions and a lack of progress in Ukraine–Russia peace talks in Geneva.
Brent crude futures closed up $2.93, or 4.35%, at $70.35 a barrel, while U.S. West Texas Intermediate (WTI) rose $2.86, or 4.59%, to $65.19.
